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Thursday, April 18, 2024 | Back issues
Courthouse News Service Courthouse News Service

Uncle Sam Whacks UPS for $40 Million

SAN FRANCISCO (CN) - United Parcel Service will forfeit $40 million it got from delivering drugs for "illicit online pharmacies," the U.S. Attorney's Office said.

Federal prosecutors and UPS entered a non-prosecution agreement under which UPS will set up a compliance program so it no longer will ship drugs for the black and gray market pharmacies.

UPS knew as early as 2003 that "Internet pharmacies were using its services to distribute controlled substances and prescription drugs without valid prescriptions in violation of the law," the U.S. attorney said in a statement. "Internet pharmacies operate illegally when they distribute controlled substances and prescription drugs that are not supported by valid prescriptions. A prescription based solely on a customer's completion of an on-line questionnaire is not valid. Despite being on notice that this activity was occurring, UPS did not implement procedures to close the shipping accounts of Internet pharmacies."

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