This week, it was announced that a Houston, Texas man had pleaded guilty to conspiring to commit money laundering. Court documents and information provided to the court shows that Marcus T. Weathersby conspired with others to carry out the fraudulent sale of second-hand prescription medications to a Utah-based wholesale distributor. The defendant’s scheme involved buying prescription medications from illegitimate sources and then selling those medications to another wholesale distributor.
Federal regulation requires wholesale prescription distributors to provide a pedigree, which is a written statement identifying each prior sale, purchase or trade of the drugs being sold. The defendant admitted that in approximately December of 2010, he established a Mississippi corporation, Acacia Pharma Distributors Inc. Roughly eight months later, he directed another individual to incorporate Four Corner Suppliers Inc. in Mississippi.
The two companies purported to be legitimate wholesale distributors of pharmaceuticals licensed and operating in Mississippi. In reality, the defendant and others used the two companies to facilitate the illegal sale of second-hand prescription drugs. The defendant also opened or caused others to open bank accounts in the names of Four Corner and Acacia. Between February of 2011 and July of 2012, Weathersby withdrew or caused others to withdraw more than $2.9 million.
The withdrawals were structured in an amount under $10,000 to prevent the banks from complying with their legal obligation to prepare currency transaction reports for transactions over $10,000. United States Magistrate Court Judge Nancy K. Johnson has scheduled sentencing for May 30. At that time, Weathersby will face a maximum sentence of 20 years in prison. Additional details have been made available here.