United States Attorney Richard B. Roper
Northern District of Texas

PODIATRIST SENTENCED TO 41 MONTHS IN FEDERAL PRISON FOR
ROLE IN CONSPIRACY TO ILLEGALLY DISPENSE DRUGS OVER THE INTERNET

DALLAS — Salvatore DeFrank, D.P.M. was sentenced to 41 months in prison by U.S. Chief District Judge Sidney A. Fitzwater for conspiring to distribute controlled substances over the Internet, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Judge Fitzwater ordered that DeFrank, 58, surrender to the Bureau of Prisons on September 2, 2008. DeFrank, formerly of Plano, Texas, was licensed to practice podiatry in Texas from 1985 to 1999 and from 2002 to February 2005. He practiced podiatry in and around the Dallas area during part of 2004. In May 2005, the Texas State Board of Podiatric Medical Examiners revoked his Texas medical license.

In Spring 2003, DeFrank began to authorize the distribution of controlled substances such as hydrocodone, alprazolam, and phentermine to Internet customers of 1stmeds.com. Representatives from 1stmeds.com agreed to pay DeFrank for each drug order bearing his name and DEA controlled substance registration number as the prescribing physician.

While never licensed in Florida, during October and November 2003, DeFrank worked in the Mid Florida Medical Clinic in Haines City, Florida, authorizing the distribution of controlled substances to 1stmeds.com customers. DeFrank admits that he knew he replaced Dr. Jean C. Dominique, whose DEA controlled substance registration was suspended in October 2003 for distributing drugs on the Internet. Between October 17, 2003 and November 13, 2003, DeFrank’s name appeared as the prescribing physician on at least 3000 1stmeds.com hydrocodone orders filled by National Scripts Inc., a pharmacy in Earth City, Missouri. At 90 pills per order, the 3000 orders represent 270,000 pills of hydrocodone.

During the time DeFrank resided in Plano, Texas, he also continued to authorize the distribution of controlled substances to 1stmeds.com from his residence in Texas.

DeFrank later received money for the use of his name and DEA registration to approve Internet drug orders from e-discountrx.com customers. For each “consultation” with an Internet customer, the Delta/MAC call center agreed to pay DeFrank $5. The Delta/MAC call center operators (non-physicians) conducted telephone consultations and approved drug orders for Internet customers of numerous online drug stores, including e-discountrx.com and its affiliates.

Delta/MAC was owned and operated by Drs. Frank and Bill McArthur; the site e-discountrx.com was owned and operated by Sherman Ted Solomon. Solomon pled guilty in April to his role in the Internet pharmacy conspiracy and faces up to 25 years in prison for admitting to conspiracy and money laundering charges. Solomon also agreed to forfeit nearly $5.7 million in cash and funds plus millions of dollars of exclusive properties in Orange County, Florida. Dr. Frank McArthur pled guilty to a drug conspiracy and a money laundering conspiracy and is awaiting sentencing. Dr. Bill McArthur pled guilty to a drug conspiracy charge pursuant to a Rule 20 transfer to the Southern District of Georgia and is also awaiting sentencing.

DeFrank admits that he never met with, communicated with, or reviewed medical records or any documents related to any of e-discountrx.com’s customers. From April through July 2004, Solomon, though Delta/MAC, paid DeFrank approximately $6100 for the use of his name, DEA registration number and scanned signature and that payment represented approximately 1207 drug orders bearing DeFrank’s name, which resulted in the distribution of 108,180 pills, mostly hydrocodone.

After the State of Texas revoked his medical license in May 2005, DeFrank, doing business as DeFrank Diversified Investments, continued to facilitate the internet distribution of controlled substances by recruiting physicians to work for websites for a referral fee. For instance, in October 2008, DeFrank referred Dr. Shelly Hope to Dr. Juan Ibanez for a $7000 referral fee and her name appeared on the drug orders for Internet customers of up to seven websites and on almost 2500 hydrocodone orders. Doctors Hope and Ibanez have been indicted in Florida.

U.S. Attorney Roper praised the investigative efforts of the Drug Enforcement Administration, the Internal Revenue Service - Criminal Investigation, the Federal Bureau of Investigation and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorney Candy Heath.

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