The United States Attorney's Office

INTERNET DISTRIBUTOR CHARGED WITH TRAFFICKING
IN FAKE PRESCRIPTION DRUGS

            (HOUSTON, Texas) – The owner of Pacific Orient International Ltd. has been charged in a nine-count indictment with conspiracy to traffic in counterfeit goods and trafficking in counterfeit pharmaceuticals, United States Attorney Don DeGabrielle announced today.

            Kevin Xu, 36, the owner and operator of Orient Pacific International, a corporation located in the Peoples Republic of China, is accused of using the internet to advertise and distribute counterfeit prescription drugs including Plavix, Casodex, Zyprexa, Aricept and Tamiflu for distribution in the United States. 

            Xu was arrested July 24, 2007 by Immigration and Customs Enforcement agents when he arrived in Houston to personally replace the packaging, lot numbers and expiration dates on an order of counterfeit and misbranded drugs.  The drugs were shipped to an undercover officer after product recalls in the United Kingdom and bore lot numbers identical to those originally provided by Xu.  According to allegations in a criminal complaint filed in July 2007, Xu had met with an undercover Immigration and Customs Enforcement Officer in Thailand in March 2007 and agreed to provide a variety counterfeit pharmaceutical drugs for introduction into the legitimate pharmaceutical market in the United States.  Xu allegedly sent several shipments of misbranded pharmaceuticals to the undercover agent April through July 2007.  

            The nine count indictment alleges Xu and others conspired to export counterfeit pharmaceutical drugs from the Peoples Republic of China for distribution in the United States from July 2006 - July 2007.  After receiving orders for counterfeit pharmaceuticals over the internet, it is alleged Xu and others shipped the pharmaceuticals to the United States.  According to the indictment, the counterfeit drugs, manufactured and dispensed from a non-FDA approved facility, were misbranded, in that the labeling on the blister pack containing the counterfeit drugs falsely represented them to contain the genuine product. 

            Xu has been in federal custody without bond since his arrest in July 2007 and will remain in federal custody pending trial of this case.  He is expected to be arraigned in federal court next week.

            If convicted of the conspiracy charge,  Xu faces a maximum sentence of five years in prison and a $250,000 fine.  Each of the three misbranding counts carries a maximum sentence of three years imprisonment upon conviction and a $10,000 fine.  Each of the five trafficking charges carries a maximum punishment of 10 years in prison and a $2 million fine upon conviction.

            The Department of Homeland Security, Immigration and Customs Enforcement and the U. S. Food and Drug Administration investigated the case.  Assistant United States Attorney Samuel Louis is prosecuting.

            An indictment is a formal accusation of criminal conduct, not evidence.  The defendant is presumed innocent unless and until convicted through due process of law.

 

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