Gilead Sciences recently exposed a counterfeit drug operation involving its HIV medications that had been tampered with and illegally resold before reaching unsuspecting patients. This illicit scheme, allegedly orchestrated from two New York City pharmacies, was reportedly masterminded by Peter Khaim, a twice-convicted medical fraudster. The court documents unveiled this month revealed that Khaim was involved in manufacturing and selling counterfeit Gilead medications on a large scale, posing a serious threat to public health and safety.
Gilead took legal action by suing Khaim, as well as the two pharmacies – 71st RX and Best Scripts, both located in Queens – that were implicated in the counterfeit drug operation. The lawsuit accused Khaim of overseeing the pharmacies and being instrumental in manufacturing and distributing counterfeit Gilead-branded HIV medications to pharmacies and patients in New York and New Jersey. The counterfeiters allegedly used authentic prescription bottles but manipulated the contents, putting patients at risk of receiving the wrong medication.
Gilead, in collaboration with attorneys and private investigators, conducted seizures at the two pharmacies and Khaim’s residence, seizing over $750,000 worth of suspected counterfeit medication. This marked the second major civil complaint by Gilead against Khaim for engaging in counterfeit drug activity within the legal pharmaceutical supply chain. Despite a previous injunction against Khaim prohibiting the sale of Gilead products, he continued to run the counterfeit operation from the Queens pharmacies.
Peter Khaim has a history of criminal activities, including medical fraud and insurance fraud schemes, for which he received significant prison sentences. Despite being under court supervision with a GPS ankle monitor, Khaim managed to operate the illicit pharmacies and continue selling counterfeit medication. Gilead’s legal actions against Khaim are aimed at ensuring patient safety and dismantling counterfeit drug networks.
Gilead emphasized its commitment to working with regulatory agencies such as the FDA, OIG, FBI, and prosecutors to combat counterfeiting and protect patients from fake and harmful medications. The pharmaceutical company’s ongoing efforts aim to deter fraudsters and prevent the illegal distribution of counterfeit drugs in the market. This case serves as a stark reminder of the importance of stringent oversight and regulatory measures to safeguard public health.
A CNBC investigation previously shed light on the prevalence of counterfeit drugs and Gilead’s struggles to prevent criminals from tampering with its medications. Counterfeiters often acquire medications from patients who sell them for cash, leading to the resealing and illegal distribution of altered drugs. The discovery of lighter fluid at the pharmacies during seizures underscores the extent of illegal operations conducted by counterfeiters like Khaim.
The uncovering of the counterfeit drug operation involving Gilead’s HIV medications highlights the critical need for robust regulatory enforcement and industry collaboration to combat illicit activities in the pharmaceutical supply chain. Patient safety must remain a top priority, and companies like Gilead must continue to be vigilant in identifying and addressing counterfeit drug schemes to protect public health and well-being.
Leave a Reply