New York doctor admits buying and selling cancer drugs for profit | USAO-NJ
NEWARK, NJ – A New York City physician today admitted to using his medical license – and allowing others to use his medical license – to purchase prescription oncology drugs under false pretences for the purpose of selling them to for profit, US attorney Philip R. Sellinger said.
Jon Paul Dadaian, 53, of New York, a board-certified anesthesiologist and pain management specialist, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information accusing him of illegally selling prescription cancer drugs, which had been previously purchased using his doctor. license and under the representation that these drugs were to be used to treat its patients.
According to documents filed in this case and statements made in court:
While operating his medical practice in Elmwood, New Jersey, Dadaian befriended two people who owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of these people, and in return for around $130,500 in payouts, Dadaian used his medical license – and allowed others to use it – to buy expensive prescription drugs, mostly drugs from biological cold chain infusion which are generally used to treat cancers. , macular degeneration and autoimmune diseases. By recruiting and using Dadaian and its medical license to purchase the drugs, the two individuals were able to obtain prescription drugs from the authorized distributors of the pharmaceutical manufacturers that they would not otherwise have been allowed to purchase. They were then able to resell them for a profit through their two businesses. By using Dadaian and his medical license to buy their prescription drugs, these two people also got discounted community doctor prices for prescription drugs on some of the drug purchases. The reduced price for community physicians was based on specialized discounts that pharmaceutical manufacturers only offered to referring physicians and others in a similar situation. The two individuals and their companies would not have qualified for this great price had they attempted to purchase the prescription drugs directly from the pharmaceutical manufacturers.
In purchasing the drugs, Dadaian and the two individuals made numerous false and misleading statements to pharmaceutical manufacturers and authorized distributors, including that Dadaian purchased the drugs for use in treating his patients and that the drugs would not be resold. or redistributed. In reality, none of the drugs were administered to Dadaian’s patients, but were eventually sold to customers of both companies for profit. The program ran from June 2012 to April 2018, during which tens of millions of prescription drugs were purchased in Dadaian’s name and using its medical license.
The sale of prescription drugs purchased by a healthcare entity is punishable by up to three years in prison and a $10,000 fine. In his plea agreement, Dadaian also agreed to return the full amount of any losses resulting from his breach. Dadaian’s sentencing is scheduled for September 20, 2022.
U.S. Attorney Sellinger credited the U.S. Food and Drug Administration Bureau of Criminal Investigations Special Agents in New York City, under Acting Special Agent in Charge Brian G. McClune; and special agents from the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, the investigation leading to today’s guilty plea.
The government is represented by Assistant US Attorneys Diana Vondra Carrig and Sara Aliya Aliabadi from the US Attorney’s Office in Camden.