(Adds background on case)
By Dan Levine
SAN FRANCISCO Aug 15 FedEx Corp faces a
new charge of conspiring to launder money in a U.S. criminal
case over the company's drug deliveries for rogue online
pharmacies despite warnings from law enforcement.
The latest indictment, filed in court on Friday, said FedEx
accepted payment from several pharmacies when it knew the
revenue was the product of invalid prescriptions.
FedEx was first indicted last month on counts including
conspiracy to distribute controlled substances. Senior company
managers were repeatedly warned that online pharmacies which had
been the subject of criminal prosecutions for supplying drugs
without prescriptions were using its services, the indictment
Instead of stopping the conduct, FedEx devised policies so
it could continue, the filing said.
FedEx pleaded not guilty and in a statement on Friday said
it is innocent of the latest charges as well.
"We will continue to defend against this attack on the
integrity of FedEx," Senior Vice President Patrick Fitzgerald
The company pressed law enforcement for a list of pharmacies
so it can stop shipments, he said. "We have asked for a list,
and they have sent us indictments," Fitzgerald said.
However in the new indictment, U.S. prosecutors allege FedEx
maintained an internal list of hundreds of pharmacies that the
company was able to link to a shipping site.
If convicted, FedEx could face fines of up to roughly $1.6
The case in U.S. District Court, Northern District of
California is United States of America vs. FedEx Corp et al,
(Reporting by Dan Levine; Editing by Richard Chang)