FedEx Indicted for Money Laundering in Online Drug Case

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FedEx Indicted
Charlie Riedel/AP
By PAUL ELIAS

SAN FRANCISCO -- Federal prosecutors say several addicts died soon after receiving shipments of illegal prescription drugs via FedEx (FDX).

The deaths were included in a new indictment filed late Thursday against FedEx that adds money laundering to a list of charges the company is facing over allegations it knowingly shipped illegal prescription drugs from two online pharmacies.

The indictment alleges that on at least five dates, "FedEx delivered controlled substances and prescription drugs from online pharmacies to individuals who subsequently died or accidentally caused the death of others."

The Memphis, Tennessee-based shipping giant is not charged with any of the deaths. No executives have been named in the indictment. The company faces a $1.6 billion fine if found guilty.

The three money laundering charges allege the online pharmacies paid their FedEx bills with money obtained illegally.

FedEx Corp. already was facing 15 conspiracy and drug charges that were filed last month for allegedly shipping powerful sleep aids, sedatives, pain killers and other drugs needing prescriptions to use. Rival UPS Inc. paid $40 million last year to resolve similar allegations.

The accusations against the two shipping companies arise from a nearly decade-long crackdown on Internet pharmacies that ship prescription drugs to customers lacking medical clearance.

In settling its case, UPS said it overhauled it procedures and worked with investigators to detect suspicious activity.

FedEx, on the other hand, said it's not a law enforcement agency and to work with authorities in the manner they demand would require invading the privacy of their customers.

"FedEx is innocent of these and all of the charges filed in this matter," spokesman Patrick Fitzgerald said. "We will plead not guilty. We will continue to defend against this attack on the integrity of FedEx."

Fitzgerald said FedEx will stop serving any online pharmacies that federal authorities tell it are operating illegally. "We have asked for a list, and they have sent us indictments," he said.

The case in U.S. District Court, Northern District of California is United States of America vs. FedEx Corp. et al., 14-cr-380.


FedEx Drug-Trafficking Charges Linked To Illegal Pharmacies

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dembaitnswitch

How Ironic, the USPS loses 2.1 billion for the 1/4, and now FedEx is facing a 1.6 billion dollar fine.

August 18 2014 at 12:25 PM Report abuse -2 rate up rate down Reply
cpruitt221

I am sure fire arms as well as drugs are sent in the mail and by Fedex or UPS everyday, but how would they be able to determine this with billions of pieces of mail every year?if people want to mail them, they can just say they are being mailed by an individual and not the drug company and how would they know.

August 18 2014 at 5:18 AM Report abuse -2 rate up rate down Reply
cabo79

What a joke, have them delivered by the usps. Talk about doing the bidding of US drug companies. They can out sorce jobs but we can't out sorce our drugs. Must be nice to own Congress.

August 18 2014 at 12:44 AM Report abuse -2 rate up rate down Reply
Stryyder56

How can you hold a mailing company liable for a product that is ordered by an individual? Then the postal service as well I am sure delivered some packages at some point with the same issue. To blame FED EX and fine them seems a bit of a stretch..............Money laundering? How does anyone know how anyone makes their money. If my employer pays me a salary, am I supposed to ask if the money he paid me with is LEGAL??? This is over reach by the government AGAIN.

August 18 2014 at 12:33 AM Report abuse +2 rate up rate down Reply
1 reply to Stryyder56's comment
cpruitt221

UPS was required to pay 40 million in a settlement for the same thing. They can do it and did.

August 18 2014 at 5:20 AM Report abuse -2 rate up rate down Reply
elendil3136

Today FedEx, tommorrow the banks. Ha ha! Just kidding.

Seriously, for FedEx and UPS to content that they didn't know what they were shipping is nonsense. This should cost several somebodies at the top their jobs - but it won't.

August 17 2014 at 11:16 PM Report abuse -3 rate up rate down Reply
drpmindmender

Robert Smith - aka "Drunk"...

...The most prolific shoveler of useless and meaningless shyte on this site...

...Which pretty much sums up Drunk's existence - useless and meaningless.

August 17 2014 at 8:26 PM Report abuse +1 rate up rate down Reply
beth_brock

Later, my BFF Evan.

August 17 2014 at 5:48 PM Report abuse -6 rate up rate down Reply
beth_brock

Why are your people looting and destroying the property of others. What's one more their more or less?

August 17 2014 at 5:45 PM Report abuse -4 rate up rate down Reply
1 reply to beth_brock's comment
beth_brock

thief

August 17 2014 at 5:46 PM Report abuse -4 rate up rate down Reply
beth_brock

Nice to hear from you again, Evan...............NOT

August 17 2014 at 5:41 PM Report abuse -5 rate up rate down Reply
beth_brock

I hear that lib train comin. It's rollin round the bend.
Ain't seen so much stupid since I don't know when.
The Dems are stuck on socialism and the waste goes on.
We'll oust them next election and we'll send them home.
That Obamacare fiasco, now it was just a lie.
When libs find out they're goin, they'll hand their heads and cry.

August 17 2014 at 5:38 PM Report abuse -4 rate up rate down Reply