SIGNONSANDIEGO NEWS SERVICES
3:27 p.m. June 16, 2004
SAN DIEGO – A bodybuilder and editor-in-chief of a muscle magazine conspired to sell a human growth hormone and to traffic in counterfeit goods, according to a federal indictment unsealed in San Diego today.
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David Palumbo, 36, of Seaford, N.Y. obtained counterfeit Serostim for Bill Young of San Diego, and sold it to bodybuilders who did not possess lawful prescriptions for the drug, according to the grand jury indictment.
It also alleges that Palumbo sent payments in cash by commercial interstate carriers such as Federal Express, often contained within the pages of Rx Muscle, the bodybuilding magazine he edited.
The indictment lists specific dates in 2002 on which Palumbo received shipments of counterfeit Serostim from San Diego, and specific dates on which he shipped counterfeit Serostim to others.
"With this arrest, a ring of individuals engaged in counterfeiting and distributing a form of human growth hormone has been broken," said U.S. Attorney Carol Lam.
Serostim is a prescription drug containing the active ingredient "somatropin," a form of human growth hormone, said Assistant U.S. Attorney Melanie K. Pierson.
She said Serostim is approved by the FDA for use in treating AIDS wasting.
Serostim is manufactured by Serono, which has registered the trademarks "Serono" and "Serostim" with the U.S. Office of Patents and Trademarks, Pierson said.
"The FBI and FDA continue to address health care fraud through the aggressive investigation of prescription drug counterfeiting and trafficking," said Acting FBI Special Agent in Charge John R. Kingston.
"The indictment of Mr. Palumbo and his associates will serve as a deterrent to individuals who are considering participating in these illegal schemes."
In a related case, Ronald Nollet and Ronald Nollet Jr. pleaded guilty Oct. 15, 2002 to manufacturing and distributing counterfeit drugs.
Among other things, the Nollets led consumers to believe they were buying legitimate Serostim, Pierson said.
She said the Nollets admitted providing vials of counterfeit Serostim to others, including Brian Mohr, knowing they intended to sell them in California, Nevada, New York and Florida.
On Nov. 12, 2002, Mohr pleaded guilty to mail fraud.
The defendant admitted that, between June 2002 and August 2002, he sold more than 250 boxes of counterfeit Serostim to Bill Young for about $89,000.
On Feb. 19, 2003, Young pleaded guilty to trafficking in counterfeit goods in connection with the sale of the counterfeit Serostim, Pierson said.
According to the indictment in the pending case, Young was the source of Palumbo's counterfeit Serostim.
Investigators were able to recover some, but not all the counterfeit Serostim the ring produced, Pierson said.
She said the counterfeit Serostim can be identified by the sticker-version hologram on the box, instead of an imprint.
Palumbo was in federal court in New York today, and is due in a San Diego courtroom July 8, Pierson said.
