March 14, 2006

Attorney General Corbett announces break-up of $1 million prescription drug ring operating in Philadelphia & surrounding counties

PHILADELPHIA - Attorney General Tom Corbett today announced that agents from the Attorney General's Bureau of Narcotics Investigation (BNI) are in the process of capturing up to seven Philadelphia area residents who participated in a prescription drug ring.

Corbett identified the central figure in the illegal operation as John Loftus, age 40, of 2340 E. Susquehanna Ave., Philadelphia.

Corbett said the BNI investigation, known as Operation "Fishtown Scripts," was based on information from agents, local law enforcement and pharmacists concerning suspicious prescriptions for Percocet (Oxycodone) and OxyContin, both powerful and potentially addictive prescription pain killers, along with Methadone, a narcotic medication typically used to treat heroin addiction.

Corbett said Loftus allegedly used a personal computer to produce hundreds of fraudulent prescriptions and used a series of accomplices, or "runners," to fill those bogus prescriptions at various pharmacies in Philadelphia along with Montgomery, Bucks and Delaware counties.  The drugs were allegedly sold in the street for profit.

Corbett said members of the organization were primarily from the Fishtown and Port Richmond sections of Philadelphia.

"This was a systematic effort to generate an illegal supply of prescription drugs to be sold on the street for a profit," Corbett said. "For many of these defendants, this was their only source of income and they tackled this work in a very organized manner, pumping more than $1 million worth of prescription drugs onto the streets of Philadelphia and surrounding communities."

Corbett said evidence and testimony about the illegal prescription drug organization was presented to a statewide investigating grand jury which recommended the criminal charges being filed today.

The grand jury found that at least 884 fraudulent prescriptions were allegedly filled by Loftus and his organization between 2003 and the present.   The prescription drugs were allegedly sold on the street with prices ranging from $5 to $10 dollars per pill.

The Operation

The grand jury found that Loftus used a personal computer to produce and print large quantities of fraudulent prescriptions for Percocet, OxyContin and Methadone. 

Corbett said the bogus prescriptions included the names of actual doctors along with the Drug Enforcement Administration (DEA) prescription number assigned to that doctor.  He explained that the DEA numbers are unique identifying numbers assigned to doctors who are registered and certified to write prescriptions for controlled substances.

According to the grand jury, Loftus used legitimate doctor's names and DEA numbers on the prescriptions he produced, but he would alter the address and telephone number on the prescriptions in order to prevent suspicious pharmacists from contacting the actual doctors.

Corbett said the phone numbers shown on the fraudulent prescriptions would typically connect callers to cellular phones used by Loftus and his associates. 

By using this method, Corbett said suspicious pharmacists trying to confirm prescriptions would unknowingly call the Loftus organization rather than the actual doctor's office.

The grand jury found that phone numbers listed on the fraudulent prescriptions were often answered by a female accomplice who would answer by saying "Doctor's office."  If the call was from a pharmacist attempting to verify a prescription, the accomplice would pretend to check the "patient's file" and then confirm that a prescription was written for a certain quantity and type of drug.

Corbett said none of the doctors whose names and DEA numbers were used by Loftus were aware of the illegal prescription ring, and all of those doctors have assisted the Office of Attorney General in identifying fraudulent prescriptions produced by the Loftus organization.

The grand jury found that Loftus and his associates took other steps to minimize the suspicions of pharmacists and avoid detection, including the use of detailed logs of runner names and pharmacies where bogus prescriptions were filled.  Corbett explained that this was done to avoid having the same runner visit the same pharmacy too often.

Corbett said Loftus used a number of associates or runners to carry out this criminal enterprise, including Thomas Dawson, Frederick Adams, Anthony O'Palka, Justin Lewanski and William Bobbit, all of Philadelphia, along with Kevin Cariola, of Bristol. 

The runners were allegedly paid in cash or a combination of cash and pills.  The grand jury found that in at least one case a runner paid another individual $100 per day to drive the runner to pharmacies and act as a lookout for law enforcement. 

The grand jury found that runners were dropped off at various pharmacies with cash, a prescription and a cell phone, so Loftus could remain in contact with them.  Loftus or an associate would remain in the car, listening to a police scanner to determine if anyone at the pharmacy had contacted local law enforcement. 

Corbett said some runners allegedly used a cane or neck brace when filling their bogus prescriptions, pretending to be recovering from serious injuries in an effort to minimize the suspicions of any pharmacist who might question their need for large quantities of pain medication. 

Corbett said that despite their efforts to avoid detection, members of the Loftus organization would still occasionally raise the suspicions of pharmacy workers.

On July 22, 2004, Loftus' vehicle was stopped by officers from the Lower Pottsgrove Police Department (Montgomery County) following a report from a Pottstown pharmacist that individuals in that vehicle had attempted to fill a fraudulent prescription for Percocet.  Loftus and Kevin Cariola were in the vehicle at the time of that traffic stop.

A search of that vehicle resulted in the seizure of 400 Oxycodone tablets (Percocet), numerous blank prescriptions, several cell phones, a notebook containing the names and addresses of various doctors and a small amount of marijuana.

Corbett said that BNI agents conducted surveillance on Loftus as well as on various Philadelphia area pharmacies commonly used by the organization.  On a number of occasions agents observed Loftus picking up runners and escorting them to various pharmacies. 

Corbett said interviews of pharmacy workers and the examination of pharmacy records were used to identify the individuals who filled the fraudulent prescriptions and confirm the types and amount of drugs illegally obtained.

Corbett said that on Nov. 18, 2005, as part of the ongoing investigation, Loftus' vehicle was stopped by BNI agents in Fort Washington, Montgomery County, after agents observed Loftus and several associates visiting a series of pharmacies in Philadelphia and Montgomery Counties.  Loftus was accompanied by William Bobbitt at the time of that traffic stop.

A search of that vehicle resulted in the seizure of 820 Methadone tablets, 300 Oxycodone tablets (Percocet), 157 blank prescriptions bearing the names of various doctors, a cell phone and walkie-talkies.  Two canes and a neck brace were also seized.

Corbett said that today's arrests are the first phase of an ongoing investigation, and explained that efforts are continuing to identify other individuals who assisted or participated in this organization.

The Prescription Drug Problem

Corbett said prescription drug abuse is a national, state and local problem accounting for nearly 30 percent of the overall drug addiction problem in the United States. Behind marijuana use, prescription drugs are the second most commonly abused drug.

Corbett said prescription drug abuse affects every American socio-economic and age group, and is rapidly on the rise among young people. He said recent statistics show the most dramatic increase in the users of prescription drugs for non-medical purposes are those 25 years old and younger.

Corbett said that prescription drug abuse is sometimes called a "closet" addiction because friends, family and co-workers are often not aware of a person's addiction. However, Corbett said prescription drug abuse can be just as deadly as heroin or cocaine addiction and the impact on society can be just as harmful.

Corbett said the Attorney General's Bureau of Narcotics Investigation actively investigates and prosecutes cases involving the illegal diversion or abuse of prescription drugs.

The defendants will be preliminarily arraigned today before Lafayette Hill Magisterial District Judge Deborah A. Lukens. 

The defendants will be prosecuted in Montgomery County by Senior Deputy Attorney General Lawrence M. Cherba, of the Attorney General's Drug Strike Force Section.

Corbett thanked the Philadelphia Police Department along with police departments from Lower Pottsgrove, Upper Dublin, Whitemarsh Township and the Montgomery County District Attorney's Office for their assistance with this investigation.

Below is a list of the defendants and the charges filed against them:

John Joseph Loftus, 40, 2340 E. Susquehanna Ave., Philadelphia, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

William J. Bobbitt, 57, 2233 E. Venango St., Philadelphia, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

Kevin Michael Cariola, 47, 706 Old Orchard Lane, Bristol, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

Thomas J. Dawson, 51, 432 E. Flora St., Philadelphia, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

Anthony Opalka, 40, 1452 E. Columbia Ave., Philadelphia, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

Justin H. Lewanski, 31, 2311 E. Susquehanna Ave., Philadelphia, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

Frederick Williams Adams, 50, 606 E. Flora St., Philadelphia, is charged with two counts of participating in a corrupt organization, one count of criminal conspiracy and one count of identity theft, along with one continuing count of obtaining a controlled substance by misrepresentation, fraud, forgery or deception, one continuing count of possession of a controlled substance and one continuing count of possession of a controlled substance with intent to deliver (continuing counts cover the period of 2001 to the present).

(A person charged with a crime is presumed innocent until proven guilty.)

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Editors' Note: Photos of the defendants and copies of the grand jury presentment are available by contacting the Attorney General's Press Office at 717-787-5211.