US seizes $18 million from accounts of compounding pharmacy.

The AP (1/7) reports from Boston that Federal authorities have seized more than $18 million “from the owners of a Massachusetts compounding pharmacy at the center of a 2012 meningitis outbreak that killed 64 people nationwide.” US Attorney Carmen Ortiz said the funds “were seized from 13 different financial institutions as a result of seizure warrants unsealed Tuesday.” The AP notes that about $16.8 million “was frozen in accounts connected to husband-and-wife Douglas and Carla Conigliaro of Dedham.” Carla Conigliaro “was a majority shareholder at the now-shuttered New England Compounding Center in Framingham,” and the Conigliaros “have been charged with transferring assets following the outbreak, which was traced to tainted steroid injections made by the company.”
The Boston Globe (1/7, Andersen, 1.78M) reports that Thomas Sobol, “a lawyer representing victims of the outbreak, lauded the government for the asset seizures. ‘Our position from square one has been that the first priority of any recovery from the Cadden and Conigliaro families should [be] the victims of the NECC tragedy,’ Sobol wrote in an e-mail. ‘Every indication seems to show that the Department of Justice, under the leadership of US attorney Ortiz, shares this goal. Since it appears this development adds to the funds already set aside, this is an excellent development. Well done, DOJ.’” The Globe notes that Christina DiIorio-Sterling, a spokeswoman for Ortiz, “said in an e-mail that it is premature to discuss the future of the funds. ‘The government has restrained the funds pending litigation,’ she wrote in an e-mail. ‘Until the litigation is complete, we cannot say with certainty how the funds will be disseminated,’ DiIorio-Sterling wrote.”

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