Executive Summary
Laws and Precedent
A federal jury in Fort Lauderdale on October 29 convicted Patrick Boyd, 47, and Charles Boyd, 43, owners of the pharmaceutical wholesale company Safe Chain Solutions, for their involvement in a scheme to illegally acquire and distribute over $92 million worth of misbranded HIV drugs. The Maryland brothers were found guilty of conspiring to purchase black-market HIV medications and reselling them to pharmacies nationwide using falsified documentation, jeopardizing patient safety.
According to court documents and trial evidence, the Boyds collaborated with at least five illicit suppliers to procure HIV drugs obtained through patient “buyback schemes.” These schemes involved purchasing medications directly from patients, often off the street. The brothers then resold these drugs to thousands of pharmacies across the country, including those in South Florida, concealing their illicit origins with fabricated paperwork.
One supplier, Peter Khaim, owner of Boulevard 9229, testified that he acquired HIV drugs from patients, removed original prescription labels, and packaged the bottles in various containers, including scavenged cardboard boxes. On one occasion, Khaim even used a discarded diaper box for shipping. Despite many bottles arriving dirty, scuffed, and lacking patient instructions, the Boyds accepted and resold them.
The scale of the operation was extensive, with the Boyds purchasing and reselling over $35 million in black-market HIV drugs from Boulevard 9229 and more than $42 million from another supplier, Gentek. Throughout the conspiracy, pharmacies frequently reported receiving drugs from Safe Chain Solutions that were dirty, tampered with, or contained incorrect medication. In at least a dozen instances, bottles labeled as HIV medication contained other drugs, such as Seroquel, an anti-psychotic, or pain medication.
The consequences for patients were severe. One individual who ingested Seroquel, believing it to be their prescribed HIV medication, lost consciousness for 24 hours. Trial evidence highlighted that even a single missed dose of HIV medication can increase a patient’s viral load, thereby elevating the risk of community transmission in areas with high HIV infection rates.
Testimony from the Boyds’ former attorney revealed that the brothers concealed and misrepresented critical information when seeking legal advice regarding pharmacy complaints and reporting obligations to the Food and Drug Administration (FDA). They failed to report numerous incidents involving pharmacies that received incorrect or tampered medications. Additionally, Safe Chain Solutions’ former Director of Compliance testified that her repeated warnings about the risks of black-market suppliers were ignored, and she was instructed not to document concerns in writing.
Following a multi-week trial, the jury convicted both Patrick and Charles Boyd of multiple charges. These include one count of conspiracy to introduce misbranded drugs, two counts of introducing misbranded drugs into interstate commerce, one count of conspiracy to traffic in medical products with false documentation, one count of conspiracy to commit wire fraud, and one count of wire fraud. Their co-owner, Adam Brosius, had previously pleaded guilty to conspiring to commit wire fraud.
U.S. Attorney Jason A. Reding Quiñones emphasized the gravity of the case, stating, “This case exposed a reckless disregard for human life. The defendants put profit ahead of patient safety, moving more than $92 million in tampered, black-market HIV medication through pharmacies across the country.” The U.S. Attorney’s Office, in collaboration with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, and the FBI, Miami Field Office, is committed to holding accountable those who endanger public health.
Next Steps
The Boyds face significant penalties, with maximum sentences ranging from three to 20 years for individual counts. A federal district court judge will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant U.S. Attorney Alexander Thor Pogozelski and Trial Attorney Jacqueline Zee DerOvanesian of the Department of Justice’s Fraud Section are prosecuting the case, with Assistant U.S. Attorney Nicole Grosnoff handling asset forfeiture.
