For Immediate Release
June 17, 2013
MIAMI – The Florida Department of Law Enforcement Miami Regional Operations Center arrested Jorge L. Castillo, Miami Lakes, Fla., and two others for trafficking in contraband prescription drugs, conspiracy to traffic in contraband prescription drugs, money laundering and organized scheme to defraud following a five-year-long investigation of pharmaceutical product diversion. The investigation began in late 2008 in partnership with the Medicaid Fraud Unit and Statewide Prosecution of the Florida Office of Attorney General, the Federal Bureau of Investigation, and the U.S. Food and Drug Administration. The case is being prosecuted by the Office of Statewide Prosecution of the Florida Office of the Attorney General. Agents arrested Castillo on Monday, June 17, 2013 at his residence, 16450 NW 83 Court, Miami Lakes. He was booked into the Broward County Jail with a $3.5 million bond.
“Thanks to a strong collaboration among multiple agencies, we have shut down this multi-million dollar prescription drug diversion ring,” stated Attorney General Pam Bondi. “The majority of these diverted drugs were paid for by Florida's Medicaid program, which essentially had taxpayers picking up the tab for illegal activity.”
FDLE agents believe Castillo has engaged in drug diversion and associated crimes since at least 2006, along with other individuals including his current wife, Vicky Castillo, and his mother, Graciela Quevedo. Between 2006 and the present, Castillo allegedly purchased contraband pharmaceutical drugs primarily from South Florida and a smaller portion from New York and New Jersey, all from illicit and unlicensed sources. The majority was diverted from the Medicaid and Medicare programs, including purchases on the street from Medicaid recipients by a network of suppliers to Jorge Castillo.
FDLE Commissioner Gerald Bailey said, “FDLE and its law enforcement partners will continue applying pressure to these new-age drug traffickers.”
Agents believe the drugs are currently collected in South Florida, shipped to Detroit by Castillo or his coconspirators, who subsequently fly to Detroit, pick up the drugs and take them to a nearby warehouse, clean the drug containers of labels if necessary and then resell the drugs to Castillo’s retail pharmacy customers. Castillo may have shipped to 72 different pharmacies in at least 18 states over the last few years. Over the last year, monthly gross income to Castillo is believed to have varied from $500,000 to as much as $1 million or more. Over the past five years, agents believe Castillo’s organization has made more than $25 million in sales to the 72 pharmacies. Of the profits made by Castillo, several million dollars are believed to have been sent either overseas or to untraceable accounts.
Pharmaceutical product diversion is a known sub-market within the wholesale distribution market of prescription drugs. Practices in this multi-million dollar market include illegal trafficking in prescription drugs stolen from warehouses, cargo theft, illegal returns to manufacturers, purchase from beneficiaries who received the drugs from social welfare programs such as Medicaid and Medicare, and other fraudulent practices.
The following individuals have been arrested:
Jorge Castillo, 43, Miami
Vicky Castillo, 42, Miami
Graciela Quevedo, 60, Miami
Vicky Castillo and Quevedo were also booked into the Broward County Jail and are being held under a $450,000 bond.
For Further Information Contact:
Gretl Plessinger, Linda McDonald or Steve Arthur
FDLE Office of Public Information
(850) 410-7001
(850) 294-6538 after hoursFor Immediate Release
June 17, 2013
MIAMI – The Florida Department of Law Enforcement Miami Regional Operations Center arrested Jorge L. Castillo, Miami Lakes, Fla., and two others for trafficking in contraband prescription drugs, conspiracy to traffic in contraband prescription drugs, money laundering and organized scheme to defraud following a five-year-long investigation of pharmaceutical product diversion. The investigation began in late 2008 in partnership with the Medicaid Fraud Unit and Statewide Prosecution of the Florida Office of Attorney General, the Federal Bureau of Investigation, and the U.S. Food and Drug Administration. The case is being prosecuted by the Office of Statewide Prosecution of the Florida Office of the Attorney General. Agents arrested Castillo on Monday, June 17, 2013 at his residence, 16450 NW 83 Court, Miami Lakes. He was booked into the Broward County Jail with a $3.5 million bond.
“Thanks to a strong collaboration among multiple agencies, we have shut down this multi-million dollar prescription drug diversion ring,” stated Attorney General Pam Bondi. “The majority of these diverted drugs were paid for by Florida's Medicaid program, which essentially had taxpayers picking up the tab for illegal activity.”
FDLE agents believe Castillo has engaged in drug diversion and associated crimes since at least 2006, along with other individuals including his current wife, Vicky Castillo, and his mother, Graciela Quevedo. Between 2006 and the present, Castillo allegedly purchased contraband pharmaceutical drugs primarily from South Florida and a smaller portion from New York and New Jersey, all from illicit and unlicensed sources. The majority was diverted from the Medicaid and Medicare programs, including purchases on the street from Medicaid recipients by a network of suppliers to Jorge Castillo.
FDLE Commissioner Gerald Bailey said, “FDLE and its law enforcement partners will continue applying pressure to these new-age drug traffickers.”
Agents believe the drugs are currently collected in South Florida, shipped to Detroit by Castillo or his coconspirators, who subsequently fly to Detroit, pick up the drugs and take them to a nearby warehouse, clean the drug containers of labels if necessary and then resell the drugs to Castillo’s retail pharmacy customers. Castillo may have shipped to 72 different pharmacies in at least 18 states over the last few years. Over the last year, monthly gross income to Castillo is believed to have varied from $500,000 to as much as $1 million or more. Over the past five years, agents believe Castillo’s organization has made more than $25 million in sales to the 72 pharmacies. Of the profits made by Castillo, several million dollars are believed to have been sent either overseas or to untraceable accounts.
Pharmaceutical product diversion is a known sub-market within the wholesale distribution market of prescription drugs. Practices in this multi-million dollar market include illegal trafficking in prescription drugs stolen from warehouses, cargo theft, illegal returns to manufacturers, purchase from beneficiaries who received the drugs from social welfare programs such as Medicaid and Medicare, and other fraudulent practices.
The following individuals have been arrested:
Jorge Castillo, 43, Miami
Vicky Castillo, 42, Miami
Graciela Quevedo, 60, Miami
Vicky Castillo and Quevedo were also booked into the Broward County Jail and are being held under a $450,000 bond.
For Further Information Contact:
Gretl Plessinger, Linda McDonald or Steve Arthur
FDLE Office of Public Information
(850) 410-7001
(850) 294-6538 after hours