Goddard
files fraud suit in online drug marketing scheme
Staff
reports
VALLEY
– The Arizona Attorney General’s Office last week announced
it filed a fraud and racketeering lawsuit against a company
that allegedly sold fake pharmaceutical Web sites, according
to a news release from that office.
“Guaranteed
Prescriptions Pharmaceutical Wealth Network used the Internet,
direct mailers and telemarketing to solicit consumers, claiming
that they could earn thousands of dollars by selling discounted
prescription drugs online to the general public,” the release
stated. “The company also marketed under the names of National
Pharmaceutical Network, Executive Marketing Group, Premier Marketing
Group and VIP Marketing.”
Attorney
General Terry Goddard’s office named in the lawsuit Brent D.
Emerson and his wife, Louise Jayne Gore, of Scottsdale; Anthony
White and his wife, Lisa K. White, of Phoenix; and Gary Murdie,
of Phoenix.
“Few,
if any, consumers actually earned money through (the) defendants’
online business opportunity,” the AG’s news release stated.
According
to a mailer quoted in court documents, the defendants claimed:
“We’ve teamed up with Pfizer, Merck, Bristol Myers, Johnson
and Johnson and many others to create a completely automated
online pharmacy Web site!”
The
mailer also stated: “Every order placed at your pharmacy is
filled by a U.S. based manufacturer. Every prescription order
is reviewed by a licensed U.S. based physician! This practice
is in accordance with FDA regulations and is perfectly legal.”
Consumers
were allegedly told that they could buy “a complete at‑home
business ... for under $1,000.”
“The
defendants used high‑pressure sales tactics to persuade
consumers to purchase advertising packages with an additional
cost of thousands of dollars,” according to the complaint.
“Defendants
urged consumers to apply for loans, borrow money from friends
and relatives, or maximize their credit card limits to pay for
the advertising. It is believed that the defendants earned millions
of dollars from consumers who had little or no knowledge of
computer technology.”
The
complaint alleges that defendants engaged in violations of the
state’s Consumer Fraud Act and Racketeering statutes.
Maricopa
County Superior Court Judge J. Dunevant two weeks ago issued
a temporary restraining
order suspending the company’s operations.
The
Attorney General’s Office is asking the Maricopa County Superior
Court to:
·
Prohibit the defendants from selling Web sites.
·
Require the defendants to return to all victims any money
or property acquired through deceptive practices.
·
Impose a penalty of up to $10,000 for each violation of the
Arizona Consumer Fraud Act.
·
Prohibit the defendants from liquidating or selling any assets
and order forfeiture to the State of all assets that could
be used to provide restitution to victims.
·
Require the defendants to pay the State’s costs and expenses
for this investigation.
