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Posted on Wed, Jul. 06, 2005



R E L A T E D C O N T E N T

Dakota County booking mug
Christopher William Smith





Owner of shutdown online pharmacy is arrested

Prior Lake man allegedly tried to reopen business in Dominican Republic.

BY MARICELLA MIRANDA

Pioneer Press


Federal agents have arrested the owner of a shuttered Burnsville-based online pharmacy for allegedly trying to start another Internet pharmacy in the Dominican Republic.

Christopher William Smith, of Prior Lake, who owned Xpress Pharmacy Direct, is scheduled to have a contempt-of-court hearing today in Minneapolis.

U.S. District Judge Michael J. Davis also will determine if Smith, who was picked up Thursday at MinneapolisSt. Paul International Airport, is eligible for bail. Two of Smith's associates are scheduled to be at the hearing for allegedly aiding him in trying to establish another online pharmacy and transferring money to him that had been frozen by Davis.

U.S. attorney's office spokeswoman Karen Bailey said Smith is being held without bond at the Sherburne County Jail in Elk River. Smith's attorney, John Nelson, declined to comment on the accusations.

"They're only allegations at this point," Nelson said. "I believe that a number of them will be found to be untrue."

Smith, 25, has not been charged with any crime, but federal authorities continue to investigate his operations.

Davis shut down the business in May and ordered a government receiver to take over its funds after authorities alleged the company sold painkillers and Viagra without a license.

Authorities seized Smith's $1.1 million home in Prior Lake, $1.3 million in cash and $1.8 million in cars, including limousines, a Ferrari, a $200,000 Mercedes and a Lamborghini.

Assistant U.S. Attorney Greg Brooker has said in court that Smith operated the pharmacy without a license from the state pharmacy board or the required registration with the U.S. Drug Enforcement Administration.

The contempt-of-court affidavit alleges Smith went to the Dominican Republic and other locations to set up a new online pharmacy and telemarketing call center. Smith supposedly left days after Davis issued a preliminary restraining order, barring him from selling prescription drugs at a new or existing company and ordering the shutdown of related Web sites.

Nelson said he would not comment on whether Smith was in the Dominican Republic. However, he said Smith had no travel restrictions placed on him by federal authorities.

Smith allegedly launched at least two Web sites to solicit business for his new online pharmacy, according to the affidavit. The sites, which were registered under Smith's reported aliases of Robert Jonson and Bruce Ronson, allow customers to place a prescription drug order over the Internet without a prior prescription from a physician.

The affidavit also claims at least two former Xpress Pharmacy Direct employees traveled in early June to the Dominican Republic to help Smith set up the new business. A former employee allegedly downloaded Xpress Pharmacy Direct's customer database, including 100,000 names and ordering information, for Smith. Former employees also allegedly sent about $53,000 to Smith to rehire employees, according to federal authorities.

Smith secretly kept large sums of money, luxury vehicles and other assets Davis ordered confiscated, according to the affidavit. In May, federal investigators seized $4 million worth of houses, pricey cars and other assets, and prohibited Smith from withdrawing up to $18 million.

The affidavit alleges that Smith made two $1,000 withdrawals from his business bank account from a casino in the Dominican Republic. The frozen account was temporarily unfrozen by the government receiver to pay employees.

At the hearing, Davis also will consider whether Smith's personal accountant and the company's chief financial officer, Bruce Lieberman, of New York, helped Smith set up a new online pharmacy.

Federal prosecutors are alleging that Smith's associate, Creaghan Harry, of Florida, who operates an online pharmacy call center in the Dominican Republic, is in violation of Davis' prohibitions against soliciting former customers of Xpress Pharmacy Direct to purchase prescription drugs.

Since 2002, Xpress Pharmacy Direct made about $18 million in profits, prosecutors believe. It also filled more than 22,000 orders nationwide under the name of one physician, prosecutors have said. The customers were often in their 20s, uninsured and paid for the drugs with cash or credit cards.

Maricella Miranda can be reached at 651-228-5421 or mmiranda@pioneerpress.com.


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Isn't this the same guy that was calling many of us over and over again saying we had a refill coming? If I remember right he would sell you Hydrocodone products at bargain rates of #150 count for around $800. And they would call, call, call, and call some more, no matter what you said. If that's the guy, hope he enjoys iron bars for a long time. Of course, he will probably have access to a computer in jail and figure a way to bother us all again.
PB

I think you're right PB. They just about drove me crazy and I have no idea where they got my name and phone #!
This is the kind of guy that gives OPs and OCS a bad (or at least worse) reputation.

Seeker

You are correct PB. I think they called me approximately 232 times on my cell phone. I tried everything to get them to stop calling and nothing worked. it took them being closed down for the calls to stop. I should send him a bill......

Thank you PB. I just read your post and it confirms that I am not out of my mind. I was getting calls from someone at least once a day up until this previous Monday. The caller indicated that I had done business with them and had a refill coming. 30 tabs for approx $500. I asked them to stop calling but that was a waste of time because someone else would call the next day. Obviously this guy was being watched else they would not have nailed him again so quickly. Guys like this give the good OP's and NROP's a bad name and makes it harder for those in pain to get the relief they need.

This happened where I live and is actually a fascinating story. If I am repeating what's in the article, I apologize but this kid is a high school drop out, becomes one of the worlds biggest (read 'notorious') spammers and then opens an online OP and grosses 22 mil in a little over 24 months. Can you imagine what this dip$hit could have accomplished in a more traditional business. He's 25! Anyhow, it makes for great reading. There are quite a few articles at startribune.com as well.