South Florida Man Arrested For Trafficking in Contraband Legend Drugs, Other Charges

A pharmaceutical company owner has been arrested by Florida Department of Law Enforcement special agents on charges his business allegedly sold active pharmaceutical ingredients without a wholesale pharmaceutical license.

Mendel Schijveschuurder, 30, of Boca Raton, was arrested today at his business and charged with one count of trafficking in contraband legend drugs, three counts of failure to deliver pedigree papers, two counts of the sale of contraband legend drugs and one count of the sale of carisprodol. The charges are violations of Florida State Statutes 499.0052 and 499.0051, which deal with the illegal distribution of wholesale pharmaceuticals. Schijveschuurder will be booked into the Palm Beach County Jail.

Attorney General Bill McCollum’s Office of Statewide Prosecution will prosecute the case, which also was investigated by the Florida Department of Health and the Food and Drug Administration’s Office of Criminal Investigation.

After Schijveschuurder’s arrest, agents executed a search warrant at his Boca Raton business, LGM Pharmaceuticals, at 922 Clint Moore Road. During that search, agents seized numerous other ingredients and/or drugs. They also seized business records and computers, along with other items, for further analysis.

The investigation began in August 2007 after agents received information that active pharmaceutical ingredients (APIs) allegedly were being sold from the Boca Raton business, which did not have a Florida license or federal license to sell wholesale pharmaceuticals and/or ingredients.

Investigators said the company sometimes conducted business through its Web site, www.lgmpharma.com. Schijveschuurder had been licensed in Florida as a prescription drug wholesale broker, but that license expired in 2004 and had not been renewed, agents said.

In addition to the lack of licenses, agents said no pedigree papers in these cases were provided to track the origin of the APIs. The authenticity, purity and safe handling of the ingredients could not be verified, according to investigators, thereby creating a break in the legitimate pharmaceutical supply chain.

A month after the investigation began, undercover agents ordered 500 grams of acetildenafil and paid $2,250 for a package labeled as 500 of acetildenafil, which is an unapproved active pharmaceutical ingredient. Acetildenafil is chemically similar to sildenafil, the active ingredient in Viagra, a prescription sexual performance medication.

With that purchase, agents received an invoice, packing slip and certificate of analysis for the product, but they did not receive a pedigree paper, as required by law, they said.

In September 2007, agents also were able to obtain olanzapine, the active ingredient in Zyprexa, which also is a patented and manufactured product. Zyprexa is a prescription anti-psychotic medication that can be used in the treatment of schizophrenia and bipolar disorder. In this case, undercover agents picked up the ingredients and paid $1,850 for one kilogram of olanzapine.

They also received an invoice and certificate of analysis for the product, but they did not receive a pedigree as required by law. Agents said that with the one kilogram purchase of olanzapine, about 100,000 dosage units of counterfeit Zyprexa could be produced, with a wholesale price of more than $1 million.

In December 2007, undercover agents ordered five kilograms of carisprodol for $1,250. A month later, LGM notified undercover agents that the carisprodol had arrived and was ready to be picked up, agents said.

Authorities said that carisprodol is a prescription drug that is used as a muscle relaxant and is sold under the trade name Soma in this country. Carisoprodol is a Schedule IV drug and a Drug Enforcement Administration license is required for a business to conduct transactions with a scheduled drug, according to agents.

A violation of Florida Statute Section 499.0051 relating to the unlawful distribution or sale of contraband legend drugs is a second-degree felony with a maximum punishment of 15 years in prison and a $10,000 fine. Schijveschuurder could also be charged with trafficking in contraband legend drugs valued at more than $25,000, a first-degree felony with a maximum prison sentence of 30 years. If the contraband legend drugs involved are valued at $250,000 or more, under Florida Statute Section 499.052(3), the defendant faces a mandatory fine of $200,000 or, if the defendant is a corporation, a mandatory fine of $600,000.

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