Gilead HIV prescription bottles seized at Best Scripts pharmacy.
Courtesy: Gilead Sciences
Gilead Sciences says it uncovered a dangerous drug-counterfeiting operation during which its HIV medications were tampered with and improperly resold before reaching patients.
The scheme, allegedly run out of two Latest York City pharmacies, identified Peter Khaim, a twice-convicted medical fraudster, because the mastermind, based on court documents unsealed this month. The corporate described Khaim as one of the brazen and largest manufacturers and sellers of counterfeit Gilead medications within the country.
Gilead sued Khaim together with the pharmacies, 71st RX and Best Scripts, each situated in Queens, and others it claims were connected to the counterfeiting scheme. Gilead’s criticism said Khaim controlled the 2 pharmacies.
“The defendants and their co-conspirators manufactured and trafficked these counterfeit Gilead-branded HIV medications to pharmacies and patients in not less than Latest York and Latest Jersey, putting untold numbers of patients’ health and safety in danger,” the lawsuit, filed by attorney Geoffrey Potter of Patterson Belknap Webb & Tyler, said.
Gilead says in its criticism that counterfeiters used its authentic prescription bottles, but tampered with the actual medication or associated documentation.
“In some cases, the bottles had their contents emptied, were refilled with the flawed medication, after which were re-resealed using a distinct material than Gilead’s authentic tamper-evident seals,” the criticism said. “The co-conspirators then sold the counterfeit bottles with counterfeit patient information documents, counterfeit caps, and/or counterfeit pedigrees or invoices.”
The vast majority of the Gilead HIV medications seized within the case were Biktarvy and Descovy.
Victims include each “patients living with HIV who’re preyed upon by Defendants and convinced to offer up taking their prescribed medication,” and “patients who go to their neighborhood pharmacy and, unbeknownst to them, are allotted a sealed, authentic-looking bottle,” but as a substitute receive a counterfeit, Gilead said within the criticism.
Gilead attorneys and personal investigators, accompanied by deputies from the Latest York City Sheriff’s Office, conducted seizures on the two pharmacies and Khaim’s home in July, taking greater than $750,000 of suspected counterfeit medication, the court filing said.
An attorney for Khaim declined to comment.
Lighter fluid found with Gilead medications throughout the seizure at Best Scripts pharmacy.
Source: Gilead lawsuit exhibit
The case is the second major civil criticism by Gilead against Khaim in reference to counterfeit HIV medications within the legal supply chain. Gilead sued Khaim and others in 2021 and obtained an injunction prohibiting him from selling Gilead-branded products. In that case, based on Gilead, Khaim made greater than $38 million selling counterfeit Gilead medications to distributors and on to pharmacies.
Despite the injunction, Khaim continued to oversee a counterfeiting operation from the 2 Queens pharmacies, the newest criticism says.
In unrelated criminal schemes, Khaim received 96 months in prison on a medical fraud case and 15 years on a separate insurance fraud scheme. He was wearing a court-ordered GPS ankle monitor while awaiting sentencing within the medical fraud case and likewise while he was operating the pharmacies and selling the counterfeit medication, based on documents within the case file.
“This lawsuit is one other clear demonstration of our ongoing commitment to place patient safety first and protect individuals from criminals who are attempting to sell counterfeit and illicit versions of Gilead’s medicines,” Gilead said in an announcement to CNBC. “Along with this lawsuit, we proceed to work closely with the FDA, OIG, FBI and prosecutors to dismantle counterfeiting networks, deter fraudsters, and thwart illegal pharmaceutical distribution.”
Last 12 months, a CNBC investigation revealed the shadowy world of counterfeit drugs and the way Gilead was fighting to stop criminals from altering its packaging and medications.
In lots of cases, based on Gilead and law enforcement officials, counterfeiters obtain medications from patients who sell them for money. The labels are typically removed with lighter fluid and the bottles resealed and allotted to other patients. On this most up-to-date case against Khaim, lighter fluid was found on the pharmacies throughout the seizures, court documents said.
