Fraud Case 1

Fraud Case 1

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Unformatted text preview: registered with different names and addresses, butsome of them shared the same IP address. I then searched Netcraft, which provides Web server analysis, and found the locations of their servers, four ISPs in Texas, Ohio, and Minnesota. When Da\rid reviewed the bank records for Advanced Express Systems, he confinned that Cory made payments to all four ISPs. David and I continued to build our case for credit card fraud and money laundering. Shut Him Down Our findings were reponed to Assistant U.S. Attorney Sarah Rich. She immediately recognized that Cory's operations were illegal. Without a legitimate doctor consultation, each and every prescription was invalid under federal law. She noted that by using the Internet and FedEx, Cory also violated federal wire and mail fraud statUles. She imrited Special Agent Rob Kinsey of the U.S. Food and Drug Administration to join our investigation and look at the illegal disuibution of controlled substances. Rob \vas a tenacious investigator and quickly reviewed Cory's Web sites to gather evidence on the drug charges. He pointed out that the sites touted an FDAapproved online questionnaire, which was a lie. After Robjoined the team, there \vas never a dull moment. And his gift for gab meant there was no such thing as a short conversation. Our team was almost set, anchored by Sarah, whom Rob accurately desClibed as our "scary smart" prosecutor. There were no single federal statutes regulating the legality of prescribing phamlaceuticals over the Just What the Doctor Ordered 5 Internet. Sarah brilliantly deciphered the combination of federal regulations, state laws, pharmacy board mles, and medical association pronouncements applicable to our case. What initially appeared to be a grey area of the law became as clear as day. An online pharmacy selling pharmaceuticals without a valid prescription was illegal. She set the precedence for our investigative team, refocusing our efforts on dmg charges. Rob was our resident drug expert and became our undercover agent to buy presCliption dmgs from Cory's online pharmacies. Within a short period of time, we developed several confidential sources that provided critical information regarding the illegal operation. Unfortunately, one source gave Cory the heads-up about our investigation and kept him up-to-date on our progress. Despite his warnings and inside information, Cory continued to brazenly build his enterplise. Creed had swallowed him. After he opened the Minnesota call center in September, his prescription dmg sales grew from $500,000 to $5 million per month. The marketing whiz kid deftly used the Internet, call centers, spamming, postcards, and facsimiles to produce more revenue. A few weeks after the winter holidays, David noticed a huge spike in deposits in the Advanced Express Systems' bank account. We later discovered that Cory had Betsy Hartman, the spam queen, hack into a competitor's online phannacy operation and steal all of their customer information. Cory had begun withdra\ving huge amounts of cash each week. Coincidentally, we learned from a sour...
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This note was uploaded on 04/04/2011 for the course ACCT 5230 taught by Professor Szendi during the Spring '10 term at Kean.

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