Wholesale Supply Corporation Pleads Guilty to Money Laundering Scheme

MIAMI – LLC Wholesale Supply LLC (Wholesale Supply) has pled guilty to a money laundering conspiracy.

The corporation, based out of Tempe, Ariz., utilized companies in several states to launder money derived from the illegal sale of diverted pharmaceuticals. These are drugs produced by the original pharmaceutical developer that make their way into the underground market. They often are high-priced drugs used to treat conditions such as mental illness, HIV, and cancer.

Per the plea agreement, Wholesale Supply agreed to a forfeiture money judgement of $98 million. The specifics of the sentence will be announced at the Jan. 4, 2023, sentencing.

“As this prosecution and conviction shows, being a corporation, having a complex money laundering scheme, or even a law license, does not make one immune from this Office’s quest for justice,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida.

In addition, two of the men involved with the corporation must pay nearly $1 million. And, one of the two men also must relinquish his law license and be barred from ever applying to practice law again. They also have agreed to never again be corporate officers or shareholders above five percent in any company regulated by the U.S. Food and Drug Administration (FDA).

“U.S. consumers are put at risk when prescription drugs are diverted from the FDA-regulated supply chain and then returned clandestinely to the supply chain for distribution to the public,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office. “We will continue to pursue and bring to justice those who put the public health at risk.”

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, and Special Agent in Charge Justin Fielder, FDA, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.

FBI Miami and FDA-OCI Miami investigated this case involving LLC Wholesale Supply LLC with assistance from the U.S. Attorney’s Offices for the District of Arizona and Western District of Washington. Assistant U.S. Attorneys Walter Norkin and Frank Tamen prosecuted the case. Nicole Grosnoff handled asset forfeiture.

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.