FedEx, UPS probed over online pharmacies' packages

fedex, UPS generic / AP

SAN FRANCISCO FedEx and UPS have disclosed they are targets of a federal criminal investigation related to their dealings with online pharmacies, which are at the center of an international crackdown on prescription drug abuse.

The shipping companies made the disclosures in regulatory filings over the last several weeks. FedEx spokesman Patrick Fitzgerald confirmed the probe in a prepared statement and a phone interview Thursday.

The investigation of the country's two largest shippers stems from a blitz against online pharmacies that was launched in 2005. Since then, dozens of arrests have been made, thousands of websites shuttered and tens of millions of dollars and pills seized worldwide as investigators continue to broaden the probe beyond the operators.

Last year, Google Inc. agreed to pay $500 million to settle allegations by the Justice Department that it profited from ads for illegal online pharmacies.

A federal jury on Thursday convicted three men of operating illegal pharmacies that used FedEx Corp. and UPS Inc. to deliver drugs without proper prescriptions. Seven others have been convicted in San Francisco this year.

Fitzgerald said he didn't know if the FedEx investigation was connected to the San Francisco cases, but U.S. Department of Justice investigators based in San Francisco are looking into issues "related to the transportation of packages for online pharmacies." He called the probe "absurd" and said the Memphis, Tenn., company denied any wrongdoing

A spokesman with the U.S. attorney's office in San Francisco declined to comment. A spokesman for Atlanta-based UPS couldn't be reached after business hours Thursday.

UPS disclosed the investigation Nov. 1 in a regulatory filing reporting its quarterly earnings.

"We have received requests for information from the DOJ in the Northern District of California in connection with a criminal investigation relating to the transportation of packages for online pharmacies that may have shipped pharmaceuticals in violation of federal law," the company stated. UPS said it was cooperating with the investigation and is "exploring the possibility of resolving this matter."

FedEx was more defiant. Fitzgerald said the company has no plans to plea bargain with federal officials.

"Settlement is not an option when there is no illegal activity," Fitzgerald said.

Both companies said they were served with grand jury subpoenas between 2007 and 2009. Fitzgerald declined to discuss why FedEx was now disclosing the investigation, but he confirmed that the company is under investigation for allegedly aiding and abetting online pharmacies that illegally ship prescription drugs.

Fitzgerald said the Drug Enforcement Agency has refused FedEx's request for a list of online pharmacies under investigation. Without such a list, Fitzgerald said it's impossible to know which companies are operating illegally.

"We have no interest in violating the privacy of our customers by opening and inspecting their packages in an attempt to determine the legality of the contents," Fitzgerald said.

[Snerdguy]

I suggest that what may be going on here is form of blackmail. Neither UPS or FedEx have a rational obligation to know exactly what is in every package they deliver. Not only would it be a logistical nightmare, it would also violate their customers right to privacy. I think the Feds are trying to bully these world wide shipping companies to give then unlimited access, without a search warrant, to delay and inspect any package they please. This is an underhanded attempt by the government to take away your right to privacy without Congress passing legislation and facing the ire of the public.

I hope these shipping companies fight the bullies to the bitter end and make a public event of it so more people can see that their right to privacy is being taken away. The Feds need to be addressing the source of the problem, not creating scapegoats to cover for their own shortfalls.

[socurious]

Another excuse to nationalize delivery services. The industry has been pared down to two major services for greater control by the government, in case you're wondering why all the mergers over the last decade, and now the final push to convert them into a regulatory arm of the system. Notice how online auctions are simultaneously going through the same process. Everyone and everything will be tracked Soviet style. Anyone who denies that fact is either a supporter of the plan or has elected to be one of the three monkeys.

[get_down]

Without exception, every time any "drug" Email coming to my in-box, it gets to the trash/deleted container immediately. Personally I am never on any medication. In terms of my better-half who does need some medication to control her HBP and we always secure a prescription from her personal Doctor's visit before we go to either Medco (former) or CVS (newer) to get it. And I prefer brand-name medication over Generic ones for my loved-one.

[margroks]

Legitimate Canadian pharmacies are a safe place to get medications. I've never read anything which proved fake drugs were coming in from our neighbor to the North. However, there are undoubtedly online sites which are uns rupulous and would sell drugs to you without a scrip and that is a red flag.

[simpleguy234]

Well said JOHNLOCKESGHOST. Indeed a witch hunt. The US Postal Service isn't liable for illegally shipped items, its the person or people that shipped it and received it. I recently read a news article where someone was busted for accepting a package that was mailed that contained cocaine. That person went to jail. So, by these standards, the USPS should be be investigated as well! Sounds to me like someone at the top is trying to give a bad rep to FedEX and UPS in a poor attempt to make the dysfunctional USPS seem squeaky clean.

[ammo17]

that $16 billion a year that the post office has lost this year must really be shaking up the the slobs in d.c. and trying to throw more money into white elephant affirmative action entity will never solve the problem.

[harvsmom]

A popular grocery store pharmacy is now ordering their meds from Canada because they are much cheaper. I was taking blood pressure medicine which worked fine for several years. However, when the pharmacy started ordering them from Canada, I started becoming very ill. It was two months later and a trip to ER before I found out they had changed vendors. These Canadian pharmacies are dangerous. So glad the feds are doing something.

[636anton33]

Your story is just that a made up story. First drugs from Canada are the same we get here the difference is that the country purchases their drugs in bulk for the entire country. Second Many of the so called cheap Canadian pharmacys are only fronts for drugs made in 3rd world countries. Those drugs are not canadian bought pharmacy drugs. Third, any pharmacy in the USA caught buying from none approved manufacturers would be closed down and fined so bad they would be out of business.

[marychgo]

The issue here, JohnLockesGhost, is NOT importing cheaper blood-pressure or cholesterol drugs (or even Viagra!) from Canada or Europe, but rather shipping pain meds and anti-depressives without a prescription to people who then sell them on the black market. I'm hardly a fan of the hugely wasteful "War on Drugs," but I don't think it's a great idea to flood the country with oxycontin or morphine for people who want to get high....

[johnlockesghost]

I agree with Fitzgerald. Without a list of illegally operated pharmacies, one can't know if the products (drugs) are illegal. Otherwise, it sounds like a government witch hunt performed at the request of American drug companies who are tireless in their effort to shut down the flow of legal drugs entering the country for personal use. It would seem that it's alright for drug companies to operate internationally, but not alright for individuals to do so even when these drugs originate from the same drug companies.

[habusteve]

If our own drug companies would quit gouging the American people then the Feds would not have to deal with illegal pharmacies popping up on line!Maybe the feds should be investigating our "legal" pharmacies and drug companies for price gouging!!!