January 23, 2005
The Sale of Counterfeit Drugs: Scam artist goes to Federal Prison
On January 21, 2005 a San Diego federal judge sentenced Mark Kolowich to over 4 years in federal prison and ordered him to forfeit profits of up to $3 million dollars. Kolowich pleaded guilty last year to conspiracy to sell counterfeit drugs, money laundering and committing mail fraud and smuggling. The operation was described by prosecutors as one of the largest illegal Internet drug sales rings they have broken.
Webmasters enable this slime bag
As you might expect, Kolowich ran his own affiliate program from WorldExpressRx.com. He shut down this site in March, 2004 and subsequently sold it. The site featured the following text: "No Prior Prescription Required". Additionally, this case highlights the fact that people were filling out health questionnaires that weren't being reviewed. Did Affiliates bother to perform their own due diligence before they helped this fraudster perpetuate these crimes? Doubtful. Could any of these counterfeit drugs actually kill visitors to a Webmasters site? That's certainly possible.
Did these Affiliate's get paid after the site closed down? Nope, which in our view is a good thing. Why? Because Webmaster Affiliates who are only concerned with making money and ignore laws, ethics, and morality also belong in jail. Your actions are those of an enabler and given the potential to actually kill one of your visitors, we hope the courts eventually sue you and you spend some time in jail.
Due Diligence Tips for Webmaster Affiliates
Tip 1 - Before you join an Internet Pharmacys affiliate program you must perform your own due dillegence. Start with the VIPPS information and verification site of the National Association of Boards of Pharmacy. If the Internet Pharmacy is not listed on this site, don't join the Affilaite program.
Pay special attention to the following requirements that an Internet Pharmacy must comply with to be listed in the VIPPS site:
"Prescriptions - Qualifying VIPPS Pharmacies, in accordance with applicable state and federal laws and regulations, must:
5) Maintain and enforce policies and procedures that assure the integrity, legitimacy, and authenticity of the Prescription Drug Order and seek to prevent Prescription Drug Orders from being submitted, honored, and filled by multiple pharmacies. Maintain and enforce policies and procedures that assure that prescription medications are not prescribed or dispensed based upon telephonic, electronic, or online medical consultations without there being a pre-existing patient-prescriber relationship that has included an in-person physical examination.
Patient Information - Qualifying VIPPS Pharmacies, in accordance with applicable state and federal laws and regulations, must:
6) Maintain and enforce policies and procedures ensuring reasonable verification of the identity of the patient, prescriber, and, if appropriate, caregiver, in accordance with applicable state law;
7) Obtain and maintain in a readily accessible format, patient medication profiles and other related data in a manner that facilitates consultation with the prescriber, when applicable, and counseling of the patient or caregiver;
8) Conduct a prospective drug use review (DUR) prior to the dispensing of a medication or device in accordance with applicable state law; and
9) Maintain and enforce policies and procedures to assure patient confidentiality and the protection of patient identity and patient-specific information from inappropriate or non-essential access, use, or distribution while such information is being transmitted via the Internet and while the pharmacy possesses such information. [The NABP Guidelines for the Confidentiality of Patient Health Care Information as It Relates to Patient Compliance and Patient Intervention Programs can serve as a useful resource for addressing the confidentiality and security of patient data.]" Source
Given the fact that a legitimate Internet Pharmacy may not be listed on the above site, use the following procedures and insure that they still comply with the requirements listed above:
Tip 2 - Spend the time to carefully examine the Internet Pharmacys site. The red flags are always the Prescription Issue and verification. Step through the order form and actually read the TOS and FAQ documents.
Tip 3 - Spend the time to Google (The SE and Groups) the pharmacy and look for Spam complaints like this. Don't join the Affiliate program of any Pharmacy which Spams.
Tip 4 - Ask your Doctor for recomendations.
Posted by Steve_S