Federal Authorities Arrest CANARX Officials Over Alleged Illegal Drug Importation Scheme
U.S. federal authorities have arrested John Thomas Howard, treasurer and director of the Canadian-based company CANARX, on charges including smuggling, conspiracy, and the illegal importation of misbranded drugs into interstate commerce. The company's president, Bob Howard, is also wanted in connection with the investigation. The allegations center on a long-running scheme to import prescription medications from overseas into the United States through unauthorized supply chains. CANARX operates as an alternative funding program (AFP), providing specialty drugs at lower costs by sourcing them from countries like Canada and the UK. While these programs aim to mitigate skyrocketing drug costs, federal investigators argue the practice is illegal and poses significant safety risks. This legal action follows years of FDA scrutiny, including a 2019 warning letter and a 2023 seizure of potentially counterfeit medications.
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Topics: corporate crime FDA investigation illegal importation prescription drugs smuggling