Three more doctors, Kenneth Olds, Kelly Tucker and Pamela Pyle, pleaded guilty in a steroid conspiracy involving the compounding pharmacy Applied Pharmacy Services (APS) (”3 more docs admit guilt in steroids case,” April 30).
Drs. Kenneth M. Olds and Kelly W. Tucker of Greeley, Colo., agreed to plead guilty in Mobile to dispensing anabolic steroids outside the course of professional practice. Greeley is also home to another who in January pleaded guiltyto withholding information about illegal steroids prescriptions.
Dr. Pamela Pyle, a Myrtle Beach, S.C., osteopath, also admitted to the withholding offense, known as misprision of a felony.
The indictments were expected after Assistant U.S. Attorney Donna Dobbins requested a postponement in the sentencing of their APS co-conspirator Scott Corliss last week. Olds and Tucker had previously been named in court documents as co-conspirators in the APS steroid scandal. We have not previously seen a link to Dr. Pamela Pyle.
MESO-Rx expects all four doctors who have pleaded guilty in the steroid conspiracy will cooperate with federal prosecutors in their pursuit of Applied Pharmacy Services Inc. and their owners Samuel Kelley and Jason Kelley.
Prosecutors allege that Applied Pharmacy Services was party to a conspiracy involving the distribution of anabolic steroids to individuals without a legitimate medical need.
“Working in concert for their mutual profit, these doctors, pharmacy owners, pharmacists and sales representatives removed the word controlled from ‘controlled substances,’” U.S. Attorney Deborah Rhodes said in a written statement. “They made sure that anabolic steroids were readily available to any person willing to pay for them, regardless of any legitimate medical need.”
Practices that have troubled prosecutors include the distribution of trenbolone acetate which has no accepted medical application in humans and the dispensing of steroids to patients as young as 19 years old.
Applied Pharmacy no longer offers pharmaceutical quality anabolic steroid and hormone preparations; they have stopped production of all anabolic steroids as a result of DEA pressure and the ongoing federal steroid investigation.
MESO-Rx learned in January 2008 that the federal government is mounting a case against Applied Pharmacy Services (APS) on charges of conspiracy to illegally distribute anabolic steroids and human growth hormone. The alleged conspiracy includes APS’ major shareholders Samuel Kelley and Jason Kelley; Brett Branch, an APS sales rep and owner of Infinite Health in Eaton, Colorado; and Colorado physicians Kenneth Olds, M.D., Kelly Tucker, M.D. and Scott Corliss, M.D. Scott Corliss is the only co-conspirator who has been indicted to date.
According to the Mobile Press-Register, physician Scott Corliss pleaded guilty for his role in the steroid scandal and agreed to cooperate with federal investigators in its case against Applied Pharmacy Services. Corliss was scheduled to be sentenced last week, but Assistant U.S Attorney Donna Dobbins from the U.S. Attorney’s office in Mobile requested a postponement to pursue additional indictments in the APS investigation.
Chief U.S. District Judge Ginny Granade agreed Thursday to postpone the sentencing hearing for a Colorado doctor who pleaded guilty to a steroids-related charge earlier this year. As part of his plea bargain, Dr. Scott A. Corliss agreed to assist the investigation…
“This multi-jurisdictional investigation is ongoing and the United States expects that charges will be filed against other co-conspirators in the near future,” the motion stated.
APS was raided in December 2006 under the direction of the Office of Albany District Attorney David Soares. However, the federal investigation and alleged conspiracy charges are separate from the New York state investigation.
Shortly after IFBB Pro Bodybuilder Victor Martinez won the 2007 Arnold Classic, Albany County District Attorney David Soare’s office publicly named Victor Martinez as an unindicted co-conspirator in the Signature Pharmacy and longevity clinic anabolic steroid scandal. Clearly, the intent and timing of the announcement represented a calculated grandstanding opportunity for David Soares to tarnish Governor Arnold Schwazenegger’s association with professional bodybuilding.
But over a year later, the Office of the Albany County District Attorney continues to prominently display Victor Martinez’ name and picture on its website in a diagram of Operation Which Doctor. He is listed with 23 other individuals directly involved in the Signature Pharmacy and longevity clinic steroid scandals. However, I believe Victor is the only individual listed who has not been indicted. But no where is he identified as an “unindicted co-conspirator” allowing visitors to make their own uninformed assumptions.
Did you ever wonder how an internet source gets busted? It’s often a textbook process by the feds in many cases. Most sources are not particularly sophisticated. And you usually have a couple of low level sources and partners who flip the bigger internet source. These guys are richly rewarded by our criminal justice system. Court documents provide some insightful details.
It started with the arrest of Jacob Piergiovanni aka “D2K3″ on April 10, 2007. D2K3’s computer revealed he had imported about 2,000 lbs of steroid powder since 2003. D2K3 was busted thanks to a cooperating defendent in Louisiana.
Two weeks later, under instruction from the feds, Piergiovanni used his email account d2k3@cyber-rights.net to place an order for anabolic steroid powders from “Worldwide” at worldwidegrowth@hushmail.com.
On April 26, 2007, FDA Special Agent David Westall used D2K3’s handle and email account to arrange the purchase of 2 kilograms of powder testosterone propionate, testosterone base, and testosterone enanthate from Worldwide for $1600.
On April 28, 2007, Worldwide requested that two payments of $800 be sent via Western Union to Alex Lewis in Ingliss, Florida with identification requirement waived in favor of a test question and answer.
On April 30, 2007, undercover SA David Westall using the handle D2K3 made payment according to Worldwide’s instructions.
On May 21, 2007, Worldwide emailed D2K3 (SA Westall) to inform him that steroid powders arrived from China.
On May 23, 2007, Worldwide shipped the steroid powder to an undercover mailbox in Brunswick, George that SA Westall provided as a shipping address.
On May 24, 2007, just over one kilogram of steroid powder was received at the undercover box. The steroid powder was shipped from Antioch, Tennessee.
At this point, federal investigators knew that Worldwide was not operating alone. Someone else was receiving and remailing steroids for Worldwide. So, they arranged a sting operation to bust Worldwide’s partner in Tennessee.
On May 25, 2007, SA Westall asked if Worldwide would be willing to receive steroid shipments from China on his behalf. SA Westall did not want to use Worldwide’s source but wanted to use his own Chinese steroid supplier.
Worldwide agreed to receive 2 kilograms of steroid powder from SA Westall’s China powder source and remail it to SA Westall (still operating under D2K3 handle). The fee for this service was $350 payable via Greendot pre-paid Visa/Mastercard.
On May 28, 2008, SA Westall purchased a Greendot card at CVS Pharmacy and emailed the card number to Worldwide.
SA Westall then requested a mailing address from Worldwide where the Chinese steroid powder could be shipped.
SA Westall then made an undercover purchase of steroid powder from a Chinese supplier of anabolic steroids identified as “top_hormone”. We believe this is well-known spammer Andy Xu who spammed various bodybuilding message boards using the following email addresses and websites:
-
andyxu@hormonechem.com
-
deenxu@hotmail.com
-
andyxzping@yahoo.com.cn
-
http://www.andychem.com
On May 29, 2007, Worldwide told SA Westall to have the Chinese steroid supplier ship the steroids to Jeff Beaty’s home address; Worldwide unknowingly gave up his partner, including real name and home address, to the feds.
SA Westall paid “top_hormone” $1217 for two kilograms of powder steroids.
On May 30th and May 31, 2007, “top_hormone” shipped two kilograms of powder steroids via expedited delivery in two shipments to Jeff Beaty aka “The Priest” in Antioch, Tennessee.
On June 2nd and June 4, 2007, both packages of steroids arrived at the Nashville, Tennessee post office.
On June 4, 2007, federal agents executed an anticipatory search warrant at Jeff Beaty’s house where they found the two kilograms of steroid powder from top_hormone. The next day they were surprised to see another shipment arrive from China containing 100 vials of growth hormone along with a FedEx envelope with $2300 cash.
Federal agents learned that Beaty received steroids and growth hormone from China and remailed them on behalf of Worldwide. In addition, Beaty was responsible for the receipt of payments for internet steroid sales and wiring payment to Chinese suppliers of steroids and growth hormone on behalf of Worldwide.
“The Priest” gave investigators Worldwide’s phone number. The feds subpoenaed phone records and learned that the phone number was the home phone registered to Matthew Jack (subsequently identified as the father of Worldwide) in Homosassa, Florida. The feds learned that David Paul Jack aka Worldwide lived with his mom and dad at that residence.
On June 14, 2007, a search warrant was executed at the home of Worldwide’s elderly mother and father in Homosassa, Florida. His parents confirmed their son had several Greendot cards in various different names, they identified their son’s voice in voice messages left on Jeff Beaty’s phone, and permitted investigators to review their caller id box where Jeff Beaty’s phone number appeared multiple times. The stated they did not know Beaty and their son was the only other person in the household who made and received phone calls.
David Paul Jack’s girlfriend gave up all the fraudulent names and identities used for Greendot cards and his internet handles including “bjbowden”. She told investigators that Worldwide also had a partner in California in addition to the “The Priest” in Tennessee.
“The Priest” continued to cooperate with federal investigators and allowed the feds to use his online identity in ongoing correspondence with Worldwide.
The Outcome
All three people involved face similar steroid distribution and conspiracy charges, including conspiracy to distribute and possess with intent to distribute anabolic steroids. They all faced up to 5 years in prison and up to $250,000 in fines.
David Paul Jack aka “Worldwide” and “bjbowden” pleaded guilty as part of a plea agreement with federal prosecutors. He was sentenced to 48 months in prison on December 18, 2007. In exchange, he got to choose which prison he would serve his sentence. His 15-month old daughter is now being raised by his parents.
Jacob Piergiovanni aka “D2K3″ pleaded guilty as part of a plea agreement with federal prosecutors. He was sentenced to 5 years probations on December 10, 2007 in exchange for his cooperation with the feds.
Jeff Beaty aka “The Priest” pleaded guilty as part of a plea agreement with federal prosecutors. He was sentenced to 5 years probation on February 15, 2008 in exchange for his cooperation with the feds.
Film producer Julius Nasso denies any mafia involvement in Lowen’s Pharmacy, its compounding business or its large scale distribution of anabolic steroids and growth hormone. Julius Nasso was a long-time friend and former business partner of the principal owner and pharmacist John Rossi, who apparently committed suicide last month. While Nasso still owns the building where Lowen’s Pharmacy is located, his attorney claims Nasso has not had any ownership stake since 1988.
Nasso is a reputed Gambino crime family associate and pleaded guilty to an extortion conspiracy involving using mob muscle to shake down actor Steven Segal.
Nasso maintains there was no organized crime involvement with Lowen’s Pharmacy; John Rossi and Rossi’s son-in-law acted independently to start selling compounded anabolic steroids and growth hormone in 2004.
The drug store’s involvement in compounding steroids and human growth hormone appears to date back only a few years.
Court papers, filed in connection with a civil lawsuit, indicated that the pharmacy - an old-fashioned, 55-year-old shop in Brooklyn’s Bay Ridge section - acquired the equipment, expertise and client lists of another compounding pharmacy in California in 2004. The owner of that business, now defunct, also provided training for some of Lowen’s staff.
Rossi and his son-in-law expanded the compounding business by attending conferences on “anti-aging medicine” in Florida, where they struck up partnerships to provide drugs to a small group of health clinics that sold steroids and hormones over the Internet.
Source: International Herald Tribune
