Gilead Sciences recently made a shocking revelation about a dangerous drug-counterfeiting operation that involved tampering with and reselling its HIV medications before reaching patients. This scheme, allegedly orchestrated by Peter Khaim, a known medical fraudster with two prior convictions, was said to be one of the most audacious and extensive counterfeit operations in the country. According to court documents that were unsealed, Khaim was identified as the mastermind behind this illicit operation, which took place in two New York City pharmacies – 71st RX and Best Scripts, both located in Queens.
The repercussions of this counterfeit operation were grave, as it put countless patients’ health and safety in jeopardy. Gilead’s lawsuit against Khaim and the implicated pharmacies stated that the counterfeiters used authentic prescription bottles but tampered with the medication and associated documentation. The bottles were emptied, refilled with the wrong medication, and sealed with materials different from Gilead’s original tamper-evident seals. Furthermore, the counterfeit medications were accompanied by falsified patient information documents, caps, pedigrees, and invoices, making it difficult for patients and pharmacies to discern the authenticity of the products they were receiving.
In response to this alarming discovery, Gilead, accompanied by law enforcement officials, conducted seizures at the pharmacies and Khaim’s residence, resulting in the confiscation of over $750,000 worth of suspected counterfeit medication. This was not the first time Khaim had found himself on the wrong side of the law in connection to counterfeit HIV medications. In a previous case, Gilead had secured an injunction against him, preventing him from selling Gilead-branded products after he had raked in over $38 million from such illicit sales. Despite the injunction, Khaim persisted in running a counterfeiting operation from the two Queens pharmacies, as stated in the latest complaint.
Peter Khaim’s track record revealed a pattern of deception and criminal behavior, with 96 months in prison for a medical fraud case and 15 years for an insurance fraud scheme. Shockingly, he was still able to operate the pharmacies and sell counterfeit medications while wearing a court-ordered GPS ankle monitor. Gilead’s relentless pursuit of justice in this case demonstrates its unwavering commitment to prioritizing patient safety and protecting individuals from unscrupulous individuals who seek to profit from illegal pharmaceutical distribution.
Gilead’s statement to CNBC underscored its collaboration with regulatory agencies and law enforcement bodies to dismantle counterfeiting networks, deter fraudsters, and thwart illegal pharmaceutical distribution. Last year, a CNBC investigation shed light on the shadowy world of counterfeit drugs and Gilead’s efforts to combat criminals who alter its packaging and medications. In many instances, counterfeiters acquire medications from patients who sell them for cash, remove the labels using lighter fluid, and reseal the bottles for distribution. In the recent case involving Khaim, lighter fluid was found at the pharmacies during the seizures, further highlighting the extent of this illicit operation.
The discovery of this dangerous drug-counterfeiting operation serves as a stark reminder of the risks posed by counterfeit medications and the critical need for stringent measures to combat such criminal activities. Gilead Sciences’ unwavering commitment to safeguarding patient safety and upholding the integrity of its products is commendable, and their collaborative efforts with law enforcement agencies are essential in curbing the proliferation of counterfeit drugs in the market. It is imperative for patients, healthcare providers, and regulatory bodies to remain vigilant and united in the fight against counterfeit medications to ensure the well-being of individuals and the integrity of the pharmaceutical supply chain.