MOBILE, Ala.—A federal grand jury has indicted three owners of a Mobile-based pharmacy, four pharmacists and five others in a $4 million steroid distribution scheme that allegedly operated in at least 10 states, according to court documents unsealed Thursday.
The indictment of Applied Pharmacy Services Inc. owners Samuel Kelley, 42, Jason R. Kelley, 31, and Jodi C. Silvio, 49, and the others was unsealed as six of the defendants faced an initial hearing in U.S. District Court in Mobile.
Authorities said 11 people had been taken into custody and one was a fugitive. All those appearing in court here declined comment after being released. They face arraignment Wednesday.
The indictment alleges that pharmacists at APS illegally dispensed steroids and other drugs to doctors and steroid dealers between 2003 and 2006 in Arizona, California, Texas, Washington, Colorado, Louisiana, New York, New Jersey, South Carolina, Florida and elsewhere.
The indictments marked the latest development in a long-term investigation into the alleged distribution of anabolic steroids to doctors, gyms, health and workout clubs nationwide. Some doctors were charged earlier in the probe and two pleaded guilty in 2008 to federal charges of helping to distribute steroids.
U.S. Attorney Deborah Rhodes said those indicted this week are charged with prescribing and selling veterinary steroids for human use. The government said it seeks the forfeiture of $4 million in drug proceeds from the alleged sales.
When asked if any sports figures bought the steroids, Assistant U.S. Attorney Donna B. Dobbins refused to identify any of the buyers but said some were teenagers.
Four APS pharmacists charged with drug distribution are Michael Bennett, 42, of Mobile; Robin K. Kelly, 49, of Chattanooga, Tenn.; Mallory Mallon, 45, of Saraland and Roger A. Everett, 76, of Mobile.
Five others were in custody in Colorado and Tennessee, but authorities described Arizona Dr. Jesse S. Haggard, 31, of Phoenix as a fugitive. Haggard is identified in the 198-count indictment as a licensed “naturopathic” medical doctor.
Brett W. Branch, 40 of Eaton, Colo. was indicted on drug and money laundering charges. His business partner, Ronald E. Winter, 51, of Greeley, Colo., also was indicted. Prosecutors allege Winter recruited steroid customers at gyms and other locations in Colorado and Utah.
James A. Abernathy, 54, of Colorado Springs, also indicted, ran Abernathy Longevity Systems in San Diego, Calif., and Body Solutions Rx in Colorado Springs. The documents allege Daniel C. Riedel, 37, of Colorado Springs, worked with Abernathy in filling anabolic steroid prescriptions.
Authorities said the distribution network included steroid dealers who found buyers through the Internet, advertisements and contacts at workout facilities. They said some of the drugs distributed were part of a “stack” or drug cocktail of anabolic steroids. Many “stacks” include human growth hormone (HGH) and human chorionic gonadotropin (HCG).
The drug conspiracy and distribution counts carry a maximum of 5 years in prison and a $250,000 fine. The penalty is 10 years if the drugs were sold to a person under 21. The money laundering charge could bring 20 years in prison and a $500,000 fine for each count.
