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Feds arrest top official of healthcare company, alleging illegal drug importation

By · Published by Everything Blog

In short

John Thomas Howard, treasurer and director of CANARX, was arrested on charges including conspiracy, smuggling, and introducing misbranded drugs into interstate commerce, while his brother Bob Howard remains wanted by federal investigators. CANARX operates by supplying foreign-sourced specialty medications to American employers to cut healthcare expenses. The criminal complaint covers an alleged scheme running from February 2017 through April 2026. Company leadership has denied all criminal allegations and pledged to mount a vigorous legal defense.

Key points

  • The Food and Drug Administration maintains that importing foreign medicines to substitute…: The Food and Drug Administration maintains that importing foreign medicines to substitute for domestic drugs violates federal safety laws.
  • CANARX previously received a 2019 FDA warning letter and experienced a shipment seizure i…: CANARX previously received a 2019 FDA warning letter and experienced a shipment seizure in 2023 over unapproved drugs.
  • Pharmaceutical manufacturer Gilead Sciences is actively pursuing a civil lawsuit against…: Pharmaceutical manufacturer Gilead Sciences is actively pursuing a civil lawsuit against CANARX regarding imported HIV medications.

Sources checked by our analysis pipeline: 1

U.S. authorities are accusing the two top officials of a Canadian company of operating a long-running scheme to illegally import prescription drugs into the U.S., according to court records filed Tuesday.

John Thomas Howard, treasurer and a director of the company, CANARX, was arrested Sunday on smuggling and conspiracy charges, according to the records.

Bob Howard, his brother, who is president and a director of CANARX, is also wanted in the federal investigation, according to an affidavit from Dustin Dobbs, a special agent with the Food and Drug Administration's Office of Criminal Investigations. He has not yet been taken into custody.

Besides conspiracy and smuggling, the arrest warrant said John Thomas Howard was charged with introducing misbranded drugs into interstate commerce and illegal drug importation. No plea has been filed.

CANARX was featured in a CNBC investigation last year that revealed how the company and others known as alternative funding programs, or AFPs, are becoming more pervasive around the U.S. as drug costs skyrocket. The investigation found these companies have penetrated the country's healthcare system by offering high-cost specialty drugs…

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