Manitoba internet pharmacy pioneer to be released from prison

Internet pharmacy pioneer Andrew Strempler is expected to walk out of prison a free man today — but not without conditions.

Strempler, 41, has finished serving two-thirds of a four-year sentence for conspiracy to commit mail fraud and importing/selling foreign and fake drugs to American citizens. He has also paid fines of $125,000 U.S.

He served most of his sentence in the U.S., but in July, Strempler was transferred to Canada and moved into a minimum-security prison in Manitoba.

"The Board assesses that you are manageable in the community and do not pose an undue risk under the structure of statutory release in concert with imposed conditions," the Parole Board wrote in a recent decision.

All offenders on conditional release must abide by conditions including:

• Travel directly to their place of residence and report to a parole supervisor.
• Remain in Canada within boundaries imposed by the parole supervisor.
• Obey the law and keep the peace.
• Always carry their release certificate and identity card.
• Report any changes in address, occupation, domestic situation.
• Not to own any weapon.

The Parole Board of Canada has placed Strempler under two additional conditions:

• Not to be self-employed or own/operate a business. "Your index offending includes the compilation/formation of company (s) in different countries for the purposes of marketing and the distribution of illegal pharmaceutical drugs. The status of your personal financial situation is considered a factor in your criminal cycle," the report explains.
• Provide documented financial information as determined by the parole supervisor. "Your crime cycle includes the illegal purchasing, marketing and distribution of pharmaceutical drugs for profit. Monetary gain is considered to be a consideration for return to this illegal activity."

Those conditions will remain in effect until Strempler's warrant expires on Jan. 2, 2016.  

According to the Parole Board report, Strempler was the founder, owner and president of an internet, mail and telephone order pharmacy based in Manitoba. Between 2001 and 2006, it sold prescription drugs to American residents.

On Oct. 31, 2001, the U.S. Food and Drug Administration sent a letter, saying it may be illegal for Strempler to ship drugs that were not FDA-approved to the U.S.

However, sales continued to grow to the point where Strempler began buying prescription drugs outside of Canada to resell — although they were being marketed as Canadian.

"In fact, during that time, the prescription drugs included drugs obtained from other foreign countries without assurance that they met Canada's standards," the Parole Board report says.

That continued until 2006, using a distribution centre in the Bahamas "in order to minimize the risk of FDA intercepting shipments."

"You devised deceptive and illegal ways of marketing and selling the pharmaceutical drugs."

In June 2006, two large shipments were seized at Miami International Airport. After testing, the FDA found several of the drugs were found to be counterfeit.

In 2012, Strempler was arrested, convicted and sentenced in Florida.

"During this time, you have been described as having 'established a positive adjustment to incarceration … courteous to staff,'" the Parole Board report says.

His reintegration potential was assessed as high and motivation level as medium.

Strempler's case is the highest-profile of the investigations into counterfeit drugs by the FDA. In 2006, he sold his company, RxNorth.com, to a former competitor — another Manitoba pharmacist named Kris Thorkelson.

Online pharmacies connected to his CanadaDrugs.com are accused of selling fake versions of the cancer drug Avastin to more than 100 American oncologists.

In August, Thorkelson, several of his companies and associates were charged with selling $78 million U.S. in unapproved, counterfeit drugs.

That case is starting to wind through the American justice system. Authorities won't say if there have been any formal requests for extradition of Thorkelson or any of the other Canadians named.