United States v. Steven Diamantstein
Court Docket: 3:23-CR-511-MAS
Court Assigned: This case is assigned to the U.S. District Court for the District of New Jersey, Clarkson S. Fisher Building & U.S. Courthouse, 402 East State Street, Trenton, NJ 08608, before U.S. District Judge Michael A. Shipp.
Criminal Charges: On June 28, 2023, charges were announced against Steven Diamantstein, the owner and corporate officer of Scripts Wholesale, Inc., a pharmaceutical wholesale distributer in Brooklyn, New York, for an alleged fraud scheme in which Diamantstein and others purchased more than $150 million of illegally diverted prescription HIV medication and then unlawfully reintroduced the HIV medication into the wholesale market. Diamantstein allegedly purchased the diverted medication from suppliers that obtained the drugs primarily through illegal “buyback” schemes in which cash was paid to HIV patients in exchange for their expensive HIV medication. Diamantstein allegedly purchased this medication at a significant discount, far below the pricing available for such drugs had they been properly acquired through legitimate and regulated distribution channels. Diamantstein and others also allegedly falsified labeling and product tracing documentation for these medications before selling and distributing the drugs to pharmacies throughout the United States to deceive pharmacies, patients, and health care benefit programs into believing that the medications had been properly acquired through legitimate and regulated distribution channels.
Diamantstein is charged with conspiracy to introduce misbranded drugs into interstate commerce and to defraud the United States, conspiracy to commit wire fraud, and conspiracy to traffic in pre-retail medical products with false documentation.
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Tags: Arrests False Pedigrees HIV New Drug Trends Pharmacy Crime Wholesalers
