Bay Area Resident Sentenced in Illicit Internet Pharmacy Sales

United States Attorney Laura E. Duffy announced today that a Bay Area resident, Ian Fischman, was sentenced to serve six months in custody, followed by six months of home detention, and was ordered to pay a $3,000 fine and to forfeit $100,000 for his role in an illicit Internet pharmacy. Fischman, who had been living in Mexico at the time of the offense, pled guilty to conspiring to launder money.

At the time of his plea, Fischman acknowledged that between May 22, 2002 and November 27, 2007, he conspired to sell $400,000 of prescription pharmaceuticals via the Internet and through the mail to over 250 persons in the United States without a valid prescription. The pharmaceuticals supplied by Fischman included “generic” Viagra, Cialis, Levitra, Propecia, and other lifestyle drugs; as well as hundreds of others medications, including Carisoprodal, which requires a prescription to be sold in the United States. Fischman admitted that he knew it was unlawful for him to supply pharmaceuticals in this manner.

In addition, Fischman admitted that he arranged to have pharmaceuticals manufactured in Mexico and India illegally imported into the United States to be shipped to Internet pharmacy customers. The proceeds from the sales were deposited in the accounts of credit card processing firms and then transferred to bank accounts in Mexico and Switzerland, through banks in San Diego and San Francisco, in order to conceal their source. Fischman also acknowledged that he utilized Western Union to receive payments for the illegally imported pharmaceuticals, directing customers to send their payments to Mexico in the names of persons other than himself in order to conceal and disguise their source.

In sentencing Fischman, the Honorable Thomas J. Whelan noted that it was a very serious offense to sell pharmaceuticals to persons known not to have a valid prescription.

Defendant

■Criminal Case No. 08cr2936-W

■Ian Alexander Fischman

Summary of Charge

■Conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h)

Agencies

■Food and Drug Administration, Office of Criminal Investigations

■Immigration and Customs Enforcement’s Homeland Security Investigations

■Federal Bureau of Investigation

■Internal Revenue Service, Criminal Investigation

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Shawn Patrick Ellifritt Sentenced in U.S. District Court

The United States Attorney’s Office announced that during a federal court session in Helena on September 20, 2012, before Senior U.S. District Judge Charles C. Lovell, SHAWN PATRICK ELLIFRITT, a 41-year-old resident of Spokane, Washington, appeared for sentencing. ELLIFRITT was sentenced to a term of:

■Prison: 235 months

■Special Assessment: $100

■Supervised Release: four years

ELLIFRITT was sentenced in connection with his guilty plea to distribution of methamphetamine.

In an offer of proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:

From July 2009 until January 2011, ELLIFRITT provided methamphetamine to a person nicknamed “XX,” who then sold the methamphetamine in Helena.

ELLIFRITT knew that “XX” drove from Helena to Spokane for the methamphetamine and the methamphetamine was headed to Helena for further distribution. ELLIFRITT admitted to receiving over six pounds of methamphetamine over this time period.

ELLIFRITT then sold methamphetamine to “XX.” “XX” obtained two to four ounces of methamphetamine from ELLIFRITT twice a month, for three years with a six- to eight-month gap. A source of information accompanied “XX” on five trips to obtain methamphetamine from ELLIFRITT. “XX” obtained approximately four ounces on each of these trips.

On January 20, 2011, a search warrant executed at ELLIFRITT’s residence resulted in the seizure of approximately a quarter-pound methamphetamine mixture, approximately $7,000 cash, digital scales, security cameras, a TV used with the security cameras, and a digital camera.

The DEA Laboratory tested the substance seized on January 20, 2011, and it had a net weight of 105.7 grams with a purity level of 95 percent.

Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that ELLIFRITT will likely serve all of the time imposed by the court. In the federal system, ELLIFRITT does have the opportunity to earn a sentence reduction for “good behavior.” However, this reduction will not exceed 15 percent of the overall sentence.

The investigation was a cooperative effort between the Federal Bureau of Investigation, the Montana Department of Criminal Investigation, and the Missouri River Drug Task Force.

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Indictments Returned in Hammond Federal Court

HAMMOND, IN—The United States Attorney’s Office announced that the following Indictments were returned on September 19, 2012:

■Billy Joe Dugard, 36, of Crothersville, Indiana, was charged in an indictment with the bank robbery of Lafayette Bank and Trust located in Demotte, Indiana. These charges were filed as the result of an investigation by the Federal Bureau of Investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.

■David Finley, Jr., 31, of Merrillville, Indiana, was charged in an Indictment with two counts of distribution of cocaine, false statements during the purchase of a firearm, sale of a firearm to a prohibited person, distribution of marijuana, possession with the intent to distribute cocaine, and possession of a firearm in furtherance of a drug trafficking crime. These charges were filed as the result of an investigation by the Federal Bureau of Investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Gary Bell.

The United States Attorney’s Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

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