July 2, 2019

Dean Volkes, the owner and former CEO of Long Island-based reverse pharmaceutical distributor Guaranteed Returns, and Donna Fallon, the former CFO, have been sentenced to five years in prison and one year in prison, respectively, for their roles in the company’s theft of customer property.  Guaranteed Returns managed pharmaceutical returns for its customers including hospitals, pharmacies, long-term care facilities, and Dept. of Defense facilities, when those customers sought to return expired or other drugs to manufacturers for a refund; customers paid a fee to Guaranteed Returns for managing this process.  While Guaranteed Returns told customers that it would hold their “indate” (not yet expired) drugs and return them to the manufacturers for refund after they expired, in fact, the individual defendants and the company returned the drugs to manufacturers and kept the full value of the returned products, diverting refunds into company internal accounts.  Evidence at trial established that the company stole more than $100 million from over 13,000 clients.  In addition to their prison sentences, defendants were ordered to forfeit proceeds and pay restitution in excess of $200 million in total.  USAO EDPA

Tagged in: Criminal Proceedings, Pharma Fraud,