Miami prescription drug wholesaler convicted

August 12, 2009

A Miami resident has been convicted of both conspiring to divert human growth hormones and causing the diversion of these human growth hormones in interstate commerce.

Jeffrey H. Sloman, acting U.S. attorney for the Southern District of Florida, and David Bourne, special agent in charge, U.S. Food and Drug Administration (FDA) Office of Criminal Investigations, recently announced that after a two-week trial a jury convicted Arnesto Segredo of both conspiring to divert human growth hormones and causing the diversion of these human growth hormones in interstate commerce.

According to court documents, from 2000 through the end of 2002, Segredo caused California suppliers who were not licensed to engage in the wholesale distribution of prescription drugs in California to regularly ship to him in Miami hundreds of boxes of Serostim, as well as some quantities of Nutropin AQ.

From 2000 through 2001, Segredo operated Life Extension Institute, a Miami prescription-drug wholesaler that was not licensed to engage in the distribution of prescription drugs in Florida. He later operated through Genendo Purchasing Organization, a Miami prescription-drug wholesaler that became licensed in Florida in July 2001.

A significant portion of the Serostim that Segredo distributed through these two companies originated from California AIDS patients, who sold their Serostim supplies secured from the Medi-Cal/Medicaid program.