Man Convicted Of Recruiting HIV Patients To Buy Illegal Prescription Drugs
Posted By Marks and Brooklier on May 19, 2010 8:32am PDT
Los Angeles jury finds Nathaniel Newhouse guilty of paying poor HIV patients to get and fill prescriptions for addictive drugs such as OxyContin. DEA agents found 29 bottles worth $40,000 to $80,000 in his car.
A man who recruited destitute HIV patients to be straw purchasers in a prescription drug scheme was convicted by a federal jury Tuesday in Los Angeles. Newhouse showed no expression as the verdict was read in the courtroom of U.S. District Judge Dean D. Pregerson.
Newhouse was arrested two years ago following a surveillance operation in which he was caught with 29 bottles of highly addictive painkillers that had been prescribed to other people. The drugs, which included OxyContin and Dilaudid, are popular on the black market and had a street value of $40,000 to $80,000, according to authorities.
Federal prosecutors told jurors during the three-day trial that Newhouse arranged for the HIV patients to meet with conspiring doctors who prescribed the drugs even though the patients did not need them. The patients, who had Medicare or Medi-Cal insurance, were charged only a couple of dollars for a bottle of OxyContin, but the insurers were billed nearly $1,000.
Newhouse would pay the patients $300 per trip to the pharmacy, but planned to sell the drugs they obtained for many times that amount. Prosecutors accused him of operating a "mobile pharmacy" out of the trunks of multiple cars he either owned or rented. Two of the recruited patients were granted immunity by prosecutors and testified against him at trial.
The day Newhouse was arrested, Feb. 5, 2008, DEA agents and Los Angeles County sheriff's deputies watched as three people filled prescriptions at B&B Pharmacy in Bellflower. The trio were followed as they were driven by a woman in a beige Honda to a nearby parking lot. As police watched, she got out of the Honda carrying what appeared to be a B&B bag and got into a Grand Marquis driven by Newhouse.
When investigators swarmed the vehicle they found the drugs prescribed to all three people in the bag. They also found thousands more pills in the trunk, glove compartment and in Newhouse's pocket. Subsequent searches of the defendant's home and a rented storage locker revealed scores of prescriptions, identification cards and Medicare cards belonging to people other than Newhouse. Newhouse faces a maximum term of 60 years in prison and is scheduled to be sentenced in August.
At the Law Offices of Marks & Brooklier, we are experienced Los Angeles federal criminal attorneys with over 50 years of experience defending federal drug crime charges. If you have been arrested for prescription drug violations, or any federal drug crime, we urge you to contact us immediately so that we may begin the procedure of defending you against these charges.
A federal drug violation is considered a serious criminal act. If you have been involved in selling, using, possessing or distributing illegal prescription drugs, you can be convicted of a federal crime. The consequences of being convicted of these types of crimes in California can include considerable jail time and large fines. We advise to contact a Los Angeles federal prescription drug lawyer for your free consultation in order to fully understand your situation and get information as to what direction should be taken on your case.