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Online Business Laws Violated

Paul J. McNulty, United States Attorney for the Eastern District of Virginia, and Peter D. Keisler, Assistant Attorney General for the Civil Division, Department of Justice,  announced that Vineet K. Chhabra, also known as Vincent K. Chhabra, age 34, of Golden Beach, Florida, was sentenced today before the Honorable Leonie M. Brinkema, United States District Judge, to 33 months imprisonment for conspiracy to distribute controlled substances. The defendant also signed a consent order of forfeiture agreeing to forfeit his interest in approximately $6 million worth of assets named in the order and the court imposed a money judgment of $16 million. Two corporations affiliated with Vincent Chhabra's business were also sentenced for conspiracy to launder money. Mr. Chhabra served as President and Chief Executive Officer of the Chhabra Group, LLC, and as manager of VKC Consulting, LLC. All these defendants agreed to forfeit all proceeds of their illegal activity. Vincent Chhabra admitted to running a business that operated websites and toll-free numbers through which he unlawfully distributed and dispensed controlled substances.

During the course of the conspiracy, he and his co-conspirators illegally distributed and dispensed millions of pills, including phendimetrazine, a weight loss stimulant sold by its brand name Bontril, and phentermine, another weight loss stimulant sold as Adipex and Ionamin. Other prescription drugs distributed and dispensed in violation of federal law included Viagra, Xenical, Propecia, and Celebrex. Customers who ordered drugs from the websites were not required to provide a prescription before receiving the controlled substances. Instead, customers filled out an online questionnaire and chose the type, quantity, and dosage they desired to purchase. The prescriptions were dispensed under the authorizations of co-conspirators through pharmacies owned by other co-conspirators. Vincent Chhabra was also a partner in the websites get-it-on.com, cybrx.com, cybrxpress.com, rxclinic.com, eprescribe.com., rxleader.com, choicerx.com, privacyrx.com, and usaprescription.com.  Mr. McNulty stated, "Internet pharmacies operating outside the bounds of law are a severe threat to public health. This prosecution is an early success in the battle against drug traffickers posing as Internet entrepreneurs. I hope it serves as a warning shot to all who think of the Internet as a good place to do bad business."

For a prescription to be valid, it must be issued for a legitimate medical purpose by an individual acting in the usual course of the professional practice. The prescriptions authorized by the physicians were not valid because they did not result from a legitimate doctor-patient relationship. Other than the online questionnaires, the physicians did not have any contact with the people ordering the medication, and did not monitor, or provide any means to monitor, medication response, weight loss or weight gain. "This very significant case speaks loudly of the FDA's commitment to enforcing laws that protect consumers in this growing area of public health concern ," said Margaret O'K. Glavin, FDA Associate Commissioner for Regulatory Affairs. "The Internet has created a marketplace for the illegal sale of prescription drugs and the absence of physician oversight places the public in harm's way. Today's sentencing should send a clear message that we will pursue criminal activity by those who try to hide behind the Internet to circumvent public health protections and place consumers at risk." The case was investigated by the Federal Bureau of Investigation, and the Food and Drug Administration's Office of Criminal Investigations. Prosecuting this case for the United States were Assistant United States Attorney Karen Taylor, and Linda Marks and Jill Furman from the Department of Justice Office of Consumer Litigation.