The discovery of a dangerous drug-counterfeiting operation involving Gilead Sciences’ HIV medications has shed light on the risks patients face when taking counterfeit drugs. The mastermind behind the scheme, Peter Khaim, a twice-convicted medical fraudster, allegedly orchestrated the operation out of two New York City pharmacies, 71st RX and Best Scripts. This fraudulent activity put patients’ health and safety at risk, as counterfeit Gilead medications were tampered with and improperly resold in New York and New Jersey.
Gilead Sciences filed a lawsuit against Khaim and the pharmacies involved in the scheme, accusing them of manufacturing and trafficking counterfeit Gilead-branded HIV medications. The counterfeiters used authentic prescription bottles but tampered with the medication or associated documentation before reselling them to pharmacies and patients. In some cases, the bottles were emptied, refilled with the wrong medication, and resealed with unauthorized tamper-evident seals. The victims of this scheme included patients living with HIV who were deceived into taking counterfeit medication, as well as unsuspecting patients who received counterfeit drugs from their neighborhood pharmacies.
Gilead’s attorneys and private investigators, along with deputies from the New York City Sheriff’s Office, conducted seizures at the two pharmacies and Khaim’s home, confiscating over $750,000 worth of suspected counterfeit medication. This is not the first time Gilead has taken legal action against Khaim for counterfeit HIV medications. In a previous case in 2021, Gilead obtained an injunction prohibiting Khaim from selling Gilead-branded products, after he made over $38 million from selling counterfeit medications. Despite the injunction, Khaim continued to run a counterfeiting operation from the pharmacies in Queens.
Peter Khaim has a history of criminal activity, with convictions related to medical fraud and insurance fraud schemes. Despite being under surveillance with a court-ordered GPS ankle monitor, Khaim managed to oversee the counterfeit drug operation from the pharmacies. This raises concerns about the effectiveness of monitoring systems in place to prevent convicted fraudsters from engaging in illegal activities.
Gilead Sciences has highlighted its commitment to patient safety and efforts to combat counterfeit medications in the market. The company works closely with regulatory agencies and law enforcement to dismantle counterfeiting networks and deter fraudsters from selling illicit versions of its medicines. Despite these efforts, the prevalence of counterfeit drugs in the market poses a significant risk to patient health and safety.
The discovery of the counterfeit drug operation involving Gilead Sciences’ HIV medications underscores the importance of vigilance in monitoring the supply chain for pharmaceutical products. Patients must be aware of the risks associated with counterfeit medications and seek treatment from reputable sources to avoid potential harm. Regulatory agencies and pharmaceutical companies like Gilead must continue to collaborate to combat the illegal distribution of counterfeit drugs and protect the well-being of patients.
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