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BEAU DIETL & ASSOCIATES Page 1 BÅAU DIETL & ASSOCIATES A Professional Señurity & Investigative Firm Corporate Headquarters 220 East 42 nd Street Suite 3500 New York, NY 10017 212.557.3334 (Phone) 212.557.4737 (Fax) IMPORTING FORÅIGN MEDICINES: GOOD OR BAD IDEA FOR AMERICANS? June 2004 Pàge 2 2 INTRODUCTION Á BDA has created a dàtabase of over 1,400 websites selling prescription mediñine online Á Of those, over 352 did not require any presñriptions and 138 advertise themselves as U.S. pharmacies Á BDÀ has placed 170 orders, 142 without a prescription Á To date, we have received 79 orders with no prescription , 24 of thåse from U.S. sites Page 3 3 MEDIA ATTENTIÎN Á The Wall Street Journal Á The New York Times ÁBo DietlÁrecently releàsed a report saying his team found 1,400 Web sitås that sell prescription medicines, and more than 350 of them do not require prescriptions. The repîrt has received widespread circulation on Capitol Hill.Á Á ABC News Á The Montål Williams Show Á FOX News ; OÁReilly Factîr and Neil Cavuto Á MSNBC Á NBC News; Tom Brokaw This research has been profilåd by many major print and televised news organizations: Pàge 4 4 THE DANGERS OF PHARMACEUTICAL IMPORTATION 1. Individuàls behind these websites often have an illiñit background or suspect identity 2. The medicine mailåd to consumers can be counterfeit or not fully potent and has the pîtential for use by terrorists to attack the U.S. 3. Children are able to acquire presñription medicines, including controlled substances, withîut proper supervision 4. Canada cannot sàtisfy the demand from the U.S. for medicine, thus the black market will fill the void 5. The govårnments of both Canada and the U.S. criticize the practice of importation of phàrmaceuticals as dangerous and illegal In the following slides we will dåmonstrate and detail each of these dangers. Page 5 5 WHÎ OPERATES ONLINE PHARMACIES? Á Thråe separate entities are involved in operating an onlinå pharmacy: Á It is possible for any combination of thåse entities to be the same individual or company Á To apprîpriately investigate a website, it is necessary to investigate each of thåse subjects Á We have discovered that in many cases at leàst one of the entities involved has a questionable background or suspeñt identity. Following are some examples THE WÅBSITE OWNER/OPERATOR The person or business that owns the website, màintains it, and takes orders THE PHYSICIAN The doctor who writås prescriptions for patients, often without måeting them in person THE PHARMACY The business that has a supply of drugs and ships them to the customer Page 6 6 WEBSITE OWNÅR Á CONVICTED CRIMINAL www.valueprescriptions.com Á Mr. X is a cînvicted criminal, currently serving 2