FedEx face fresh charges for shipping illegal prescription drugs

FedEx has recently faced fresh charges against it, filed by the US federal government in relation to the supposed shipping of illegal prescription drugs in connection to online pharmacies. The new charges accuse the American parcel delivery company of conspiracy to money laundering, with particular connection to the payment of shipping items of behalf of two specific groups of illegal online pharmacies.

The new charges accompany an existing fine against the company of more than $1.6 billion for its role in the distribution of prescription drugs. FedEx strongly denies the fresh charges in addition to the original indictment, with representatives claiming the newer charges simply related to the way in which customers paid for its services.

FedEx Senior Vice President for Marketing and Communications, Patrick Fitzgerald, has said: “FedEx, of course, requires customers to pay for our services. The collection on delivery service reference in the indictment is available to all of our millions of FedEx Express customers.”

The indictment charges come as the result of a nine year investigation into the use of online pharmacies, with consumers purchasing prescription drugs without having a valid prescription. The alleged incidents date back to 1998, with drugs such as amphetamine, diet pills and valium being involved, however charges claim that FedEx was warned regarding the issue in 2004. FedEx has said its policy enforces the refusal to ship items of behalf of companies that have been listed by the US drug enforcement authorities as having been involved in illegal activity. However, FedEx has also said that no such list has been provided by government officials when asked for.

The fresh claims of money laundering relate to incidents occurring from 2000 to 2008. FedEx has been accused of conducting financial transactions of unlawful activity. It is believed the money from the Internet pharmacies has enabled the payments to FedEx for its shipping services. It is also believed that a number of the deliveries by FedEx involved cash-on-delivery, leading to FedEx knowing it was collection money for prescription drugs without being appropriately prescribed by a figure of medical authority. FedEx is potentially at risk of paying penalties worth around $820 million.

Fitzgerald has said FedEx remain innocent in saying: “We will plead not guilty. We will continue to defend against this attack on the integrity of FedEx. We continue to ask for a list of all internet pharmacies engaging in illegal activity so we can turn off shipping for those companies immediately. We have asked for a list, and they have sent us indictments.”