Skip to content

Operators of So-Called Canadian Pharmacy Sentenced for Distributing Misbranded Prescription Drugs

Last year, we wrote about criminal charges against Billy Lee, Tarn Uppal, and Tony Lee, who operated "Canadian" internet pharmacies but shipped US residents drugs that were not really from Canada. This week, the FDA's Office of Criminal Investigations announced sentencing for these British Columbia residents, amounting to three years' probation and a fine of $55,000. Their Barbados-registered company, Quantum Solutions, received a $150,000 fine and was ordered to forfeit $4,235,000.

Despite the Canadian residency of the operators, there was hardly anything Canadian about Quantum. The company bought drugs made for foreign markets from suppliers in Turkey and other non-Canadian countries, and sold the drugs to pharmacists in the US. These drugs were sent to a shipper in the UK, who repackaged them and put misleading labeling on them to make them appear as if they were for the personal use of the recipient. Packages were sent into the US, where they were again repackaged. The drugs were misbranded and sent to the US pharmacists, presumably for resale. Money paid for these drugs traveled not only to Canada, but also offshore to Barbados.

By using websites that supposedly were operated by a real Canadian pharmacy and supposedly dispensed Canadian pharmaceuticals - including canadadrugpharmacy.com, canadianpharmacymeds.com, and canadadrugcenter.com - the operators deceived customers, primarily ones in the US. None of the prescription drugs sold by these websites met FDA approval because they were made and labeled for use outside of the US.

The sentencing comes only weeks after the shutdown of the flagship website of CanadaDrugs, whose operators pleaded guilty in April to selling misbranded and counterfeit prescription drugs in the US, most notably fake cancer medication sourced from outside Canada.

As proponents of the Canadian internet pharmacy sector continue to advocate for the legalization of sales of drugs from "Canadian" and other "international" internet pharmacies into the US, it's important to expose the way in which these internet pharmacies often really work - selling drugs that don't really come from Canada, which increases the safety risk.

David Khalaf is a writing, communications, and marketing professional with specialties in media, investigations, content strategy, and writing instruction. His 20 years of writing, media, and communications work have included two top-tier universities (USC and UCLA), print and digital magazines, consulting firms, and technology companies.

His current work involves content strategy and development at LegitScript, a company that helps the world's leading search engines, payment service providers, and internet platforms and marketplaces do business with legitimate, legally operating entities in more than 80 countries and 15 languages around the world. LegitScript specializes in risk and compliance for highly regulated industries including CBD/cannabis, online gambling, cryptocurrencies, drugs, financial trading, online adult, scams and fraud, and more.

Recent Blog Articles

Problematic Product Spotlight: Tianeptine

LegitScript has observed a recent rise in both the popularity and regulatory scrutiny of tianeptine, an unregulated substance commonly sold in gas stations and online - and often marketed with unproven claims to be a cognitive enhancer as well as an alternative to opioids. As such, manufacturers hav...
CBD Hemp oil, Hand holding droplet of Cannabis oil against Marijuana buds. Alternative Medicine

What You Need to Know About CBD Product Labeling Regulations

From CBD product labels that claim to diagnose, cure, mitigate, treat, or prevent disease to truth-in-advertising requirements - LegitScript explores the regulatory environment of CBD as it exists today. Then download our CBD Compliance Resource Guide or create an account to apply for your CBD Certi...
EU’s Strategy to Combat Counterfeiting

What You Need to Know About the EU’s Strategy to Combat Counterfeiting

In an effort to strengthen intellectual property (IP) rights, the European Commission recently adopted a recommendation on initiatives intended to curb counterfeiting activities both online and offline. This post discusses the strategy, adopted recommendations, and new approaches to stopping the sal...

This Piece of Legislation Redefined Hemp for an Entire Nation

The 2018 Farm Bill redefined the legal definition for hemp, and with that change unearthed a nationwide market for hemp-derived CBD products. Learn more about the Farm Bill, explore the current regulatory landscape for hemp and CBD products, and then download LegitScript's CBD Compliance Resource Gu...