Gilead Sciences recently revealed a dangerous drug-counterfeiting operation that took place in two New York City pharmacies. The mastermind behind this operation was identified as Peter Khaim, a twice-convicted medical fraudster. He was described as one of the most brazen and largest manufacturers and sellers of counterfeit Gilead medications in the country. The scheme involved tampering with Gilead’s HIV medications and improperly reselling them to pharmacies and patients.
Gilead Sciences took legal action against Khaim, along with the pharmacies 71st RX and Best Scripts, both located in Queens. The company accused them of being connected to the counterfeiting scheme. According to Gilead’s complaint, Khaim controlled the two pharmacies and was involved in manufacturing and trafficking counterfeit Gilead-branded HIV medications. The lawsuit highlighted the risks posed to patients’ health and safety due to this counterfeit operation.
The counterfeiters used authentic prescription bottles from Gilead but tampered with the medication or associated documentation. They would refill bottles with the wrong medication, reseal them using different materials than Gilead’s authentic seals, and sell them with counterfeit patient information documents, caps, and pedigrees or invoices. The majority of the seized Gilead HIV medications were Biktarvy and Descovy.
Impact on Patients
Victims of this counterfeiting operation included patients living with HIV who were convinced to take counterfeit medications instead of their prescribed ones. Additionally, patients visiting their neighborhood pharmacies might unknowingly receive counterfeit medication in sealed, authentic-looking bottles. Private investigators, with the help of the New York City Sheriff’s Office, seized more than $750,000 worth of suspected counterfeit medication from the two pharmacies and Khaim’s home in July.
Khaim’s Criminal History
Peter Khaim has a history of involvement in criminal schemes, including medical fraud and insurance fraud. Despite facing a previous injunction prohibiting him from selling Gilead-branded products, he continued to oversee the counterfeiting operation from the two Queens pharmacies. Khaim received prison sentences for his involvement in these schemes, yet he still managed to operate the pharmacies and sell counterfeit medication while wearing a court-ordered GPS ankle monitor.
In response to the counterfeit operation, Gilead Sciences stated its commitment to patient safety and vowed to work with regulatory and law enforcement agencies to dismantle counterfeiting networks and deter fraudsters. The company emphasized the importance of protecting individuals from criminals selling counterfeit versions of its medicines. This case highlighted the ongoing challenges faced by pharmaceutical companies in combatting counterfeit drugs and ensuring the integrity of the supply chain.
Continued Efforts to Combat Counterfeiting
Gilead’s legal actions against Khaim and the pharmacies involved in the counterfeiting scheme underscored the company’s dedication to combating counterfeit drugs. Despite previous legal interventions, criminals like Khaim continued to find ways to operate illegal operations, posing significant risks to patients’ health and safety. Gilead’s collaboration with regulatory agencies and law enforcement is crucial in disrupting counterfeiting networks and preventing the distribution of illicit pharmaceuticals.