US Pharmaceutical Fraud on the Rise

Dec. 22, 2010  US Pharmaceutical fraud on the Rise- over the past 20 years.
The ever increasing deficit from the US government spending on drugs that are neither tested, approved or warranted is causing billions of dollars in losses for taxpayers.

The recent report posted December 16, 2010 from the Public Citizen provides information on illegal activity of pharmaceuticals for the last 10 years of high priced drugs and activities that are harming Americans.

The major big players in this illegal drug business are:

1) Eli Lilly
2) Pfizer
3) GlaxoSmithKline
4) Schering-Plough

The main stream media has not brought this information and facts to the public for many reasons, namely drug company advertising revenues that network television receives from the drug makers. The corruption continues and has been on the rise for 20 years now and still the fraud continues to affect American lives.

The report produced by Sammy Almashat, M.D., M.P.H., Charles Preston, M.D., M.P.H., Timothy Waterman, B.S., Sidney Wolfe, M.D., and the Public Citizen’s Health Research Group provides valuable research in how these operatives are deceiving the US government.

Dr. Sidney Wolfe, is the director of Public Citizen’s Heath Research Group and is one of the authors of:

Rapidly Increasing Criminal and Civil Monetary Penalties Against the Pharmaceutical Industry: 1991 to 2010.

You can view the report Here:  Public Citizen Health Research Group

The report provides a list of all major criminal and private civil lawsuits between the federal branch of government and the drug manufacturers.

The US government purchased the H1N1 Vaccine for what turned out to be a risky investment and was not tested by any outside review panels.  The FDA blindly accepted the vaccine and blindly purchased approximately 3 billion dollars of a useless and dangerous vaccine.

Ultimately this decision proved to be fatal for some recipients, made thousands very sick with lasting side effects and was a waste of money. The CDC, FDA, NIH all approved, endorsed and advertised and in some cases mandated the vaccine to be forced onto the public without scientific backing or testing.

The H1N1 Vaccine Hoax was For Profits

The US government purchases annual flu shots that again do not protect against all flu strains, just a few each year. As we enter the winter of 2010-2011 the flu shot now contains this H1N1 vaccine again without testing and with the addition of the adjuvant squalene which was never before approved.

The H1N1 vaccine is just as useless, and dangerous as it was in the fall of 2009, and more than 70 % of Americans refused to take it. Many other world countries refused to inoculate their citizens, some asking for refunds, some returning the stockpiled H1N1 vaccines.

Each year the US federal government accepts without question the flu shots doled out by drug companies which have never been proven to work and everyone knows it.  This is adding to the deficit and increases drug company profits, it is an easy sale but a waste of billions each year. If the present government is at all interested in reducing the deficits, cutting costs of useless policies, they can start with the annual flu shot and the overdoses of vaccines.

The US government has even allowed drug companies to experiment on US troops in Afghanistan and Iraq for the last 10 years, many of whom have committed suicide, or have been permanently damaged by vaccines that are dangerous and even deadly. The taxpayer is footing the bill for these serious breaches and endangering the lives of our soldiers.


For example, the H1N1 vaccine was made mandatory for all soldiers even though there was no pandemic, especially in the Middle east. In fact, in both years 2009 and 2010 there was no epidemic of swine flu ever recorded to have happened world wide. Many considered the fact that the virus was made in a laboratory and released, while the patent was applied for at the US Patent Office -one year before the swine out break in March of 2009.

US pharmaceuticals have been charged with, accepted penalties for defrauding state and federal health plans such as Medicaid. The drug company’s overcharged, over billed and violated a code of ethics as long as they could get away with it.

The act used by the government to prosecute drug companies is called the False Claims Act (FCA) which is a tool but as of 2010 the act has been weakened and violations are only considered “civil” not “criminal” processes and therefore only carry a slap on the hand which is a small financial penalty for violators. The violations range from financial, environmental, concealing study facts, kickbacks, monopolies, unlawful promotions, and overcharging the government.

The report indicates there is an increase of criminal activity by the largest drug companies who repeatedly violate the law and the number of incidents of crime have continued to increase to this year of 2010.

The conclusive evidence indicates the US government is too lenient, too inept to stop the violations and has been lax in using heavier tactics like prison or a real threat to drug companies. The number of drug company lobbyists in Washington have affected US government expenditures and it appears the biggest customer of prescription drugs is the Federal Government of the United States.

As drug companies continue to defraud the US government they do so world wide as well.  No matter what efforts the feds have taken this very expensive, deadly policy of allowing fraud from pharmas to continue will endanger the public, cost billions of wasted money, and they represent the Number 1 fraud scheme in the past twenty years.

An excerpt from the Report:

Governments have struggled to keep pace with the increase in these companies’ aggressive tactics. The federal government has imposed some of the largest criminal fines ever for activities such as off-label promotion.   And as state Medicaid programs have struggled with high enrollments and dire budgetary conditions, an increased focus has been placed on rooting out Medicaid fraud.”

Editors Note:  We call this The Drugging of America.

For years now, approximately a decade the US Federal and State governments have spent billions of dollars and have been conned by drug company influences.

From 40 billion in 1990 to 234 billion in 2008 which represents  a 10.7 billion dollar increase each year that the government is wasting on drugs.

From 1990 to 2008 this is a 582 percent increase in fraud and penalties and it is because of a weak or unwilling Federal government.  Our taxpayers dollars are going to drug company’s bottom line. (profits).  This figure is alarming enough without having to delve into who is getting paid off on the inside of the government to accept such criminal activity on a regular basis through campaign donations.

The major issue here is that the feds are ignoring fraud on the biggest scale, involving the biggest crimes from the biggest drug companies.

For the crime of concealing study findings which is most common of the biggest drug companies they hide the facts from the federal, state governments but mostly from the public. Who is protecting the public from the crimes of billion dollar companies?  No one. The federal government pockets the settlements, the penalties but what does the public receive of this money, none of it. If the public is damaged by drugs, vaccines or prescription drug related products they must appeal to the courts for relief and that takes many years before the cases are heard.

The government is being complicit in allowing this charade to continue and it is a fraud on the public to know this system of pharmacy fraud to be “the way it is” today.

In the Wall Street Journal dated December 8, 2010 three large drug makers paid 421 million dollars in a settlement to the US government for defrauding health care system programs that represented larger amounts in inflated claims against Medicaid or Medicare reimbursements.  Doctors and pharmacists pocketed the difference and this was paid by your taxpayers dollars.  The three companies were: Abbot Laboratories, Roxanne Labs and Braun Medical Inc.

The largest companies are the biggest offenders with GlaxoSmithKline leads the penalty category at 3.4 billion dollars for financial violations. in the year 2006.

Followed by Pfizer at 2.3 billion for unlawful promotion and kickbacks dating back to 2009 for Bextra, Geodon, Zyvox and Lyrica and violating the False Claim Acts, Food, Drug and Cosmetics Act.

In total 19 of the largest drug makers paid millions in penalties to the US government in a revolving cash game of cat and mouse that benefits the government more than the public for the false claims of drugs.  These violations are increasing in numbers, frequency and involve larger amounts of drugs affecting more people each time.

The federal government has to put an end to these violators by creating updated stronger penalties that involve more than money. Money is what drug companies have in great supply and it is time for some more appropriate jail time for the CEO’s of these companies to send a real message and act as a deterrent.

Thankfully, whistle-blowers and former employees of these fraud criminal corporations will continue to bring to light more violations and bring some justice to drug practices and prescription drug crimes.