October 01, 2015
Contact: SA Timothy Massino
Phone Number: (213) 621-6700
West L.A. Pharmacy Owners Arrested On Drug Trafficking And Money Laundering Charges For Diverting Prescription Drugs To Black Market
LOS ANGELES - Two brothers were arrested today on federal drug trafficking and money laundering charges for allegedly utilizing a bogus pharmacy to obtain and distribute large quantities of prescription narcotics, including oxycodone, to black-market customers. Berry Kabov, 44, and his brother, Dalibor Kabov, 32, are charged in a 40-count indictment that also alleges they operated Global Compounding Pharmacy in West Los Angeles to illegally import large quantities of anabolic steroids. Global Compounding, LLC, is also named in the indictment as a defendant.
A search warrant affidavit unsealed today details how the Kabov brothers used Los Angeles as a base to sell bulk shipments of prescription drugs to black market customers across the country. Investigators seized parcels containing thousands of hidden oxycodone pills that the brothers attempted to ship to customers in and around Columbus, Ohio, according to the search warrant affidavit. In turn, customers made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California. During recorded calls with an informant, Berry Kabov coordinated the shipments and explained that he could sell oxycodone in New York for as much as $50 per pill.
The indictment details how the Kabov brothers used Global Compounding Pharmacy as a front to facilitate the acquisition of prescription drugs from the wholesale market. DEA administrative records show that between June 2012 and January 2014, the Kabov brothers purchased massive quantities of drugs, including nearly 100,000 oxycodone pills, as well as tens of thousands of pills of (commonly sold under the brand name Vicodin) and (commonly sold under the brand name Dilaudid). Global Compounding was the top purchaser of oxycodone among all pharmacies in the Los Angeles area in 2014 and ordered three times more oxycodone than the second-largest purchaser.
Surveillance of Global Compounding during the course of the investigation revealed that few customers, if any, ever actually visited the pharmacy. The affidavit also described an inspection at Global Compounding by the California Board of Pharmacy in January 2014 that led investigators to conclude “Global Compounding is not a legitimate pharmacy and in fact is a façade for a drug trafficking operation.” In support of this conclusion, the state investigators noted a lack of over-the-counter drug products ordinarily carried by legitimate pharmacies and records indicating that many of the prescriptions purportedly being filled by the pharmacy were for patients outside of the Los Angeles area.
The brothers also allegedly engaged in money laundering and the structuring of cash transactions to avoid federal reporting requirements. Records reveal more than $1.5 million in structured cash deposits were made into multiple bank accounts controlled by the Kabov brothers.
If convicted of the charges in the indictment, Berry Kabov and Dalibor Kabov each would face a statutory maximum sentence of 430 years in federal prison.
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, the United States Postal Inspection Service, the Los Angeles Police Department and the California Board of Pharmacy. The United States Attorney’s Office in the Central District of California is prosecuting the case.