A Florida-based pharmaceutical president has pleaded guilty to federal drug trafficking offenses in the Eastern District of Texas, U.S. Attorney Brit Featherston has announced.
Adam P. Runsdorf, 57, of Boca Raton, Florida, pleaded guilty to conspiracy, trafficking in counterfeit drugs and conspiracy to launder money today before US Magistrate Christine L. Stetson.
According to the indictment, from April 2014 to August 2021, Runsdorf, the owner and president of Boca Raton, Florida-based Woodfield Pharmaceutical LLC, conspired with drug traffickers in Houston, Texas to distribute mislabeled and counterfeit cough syrup. The Runsdorf company pleaded guilty to the same charges today before Judge Stetson.
According to information presented to the court, Byron A. Marshall, 43, of Houston, used Woodfield Pharmaceutical’s manufacturing plant and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs in Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas and Ohio. Prices generally ranged from $100 to over $1,000 per pint bottle. Depending on the market and brand of cough syrup, prices ranged as high as $3,800 to $4,000 per pint.
During the conspiracy, Marshall communicated directly with Runsdorf regarding the production of the counterfeit cough syrup. At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical only in cash, and Woodfield employees sent the money directly to Runsdorf in Boca Raton.
Six co-defendants, including Marshall, have already pleaded guilty and are awaiting sentencing.
Runsdorf faces up to 20 years in federal prison upon sentencing. The maximum statutory sentence prescribed by Congress is provided here for informational purposes, as the sentence will be determined by the court based on the sentencing advisory guidelines and other statutory factors. A sentencing hearing will be scheduled following the completion of a pre-sentence investigation by the US Probation Board.
“In April 2014, Actavis Holdco US discontinued production of Actavis Cough Syrup due to its widespread abuse by recreational drug users,” US attorney Brit Featherston said. “After that, the market value of Actavis rose to over $3,000 a pint. In his greed, Adam Runsdorf, owner and president of Woodfield Pharmaceutical, used his position and connections to enable Houston drug traffickers to produce thousands of gallons of counterfeit Actavis, labeled as nearly identical to the discontinued product. The conspirators in this case sought to take advantage of the scarcity of Actavis and other prescription cough syrups by marketing counterfeit versions to street-level abusers.
“Today Adam Runsdorf pleaded guilty to his role as CEO of Woodfield Distributors in illegally distributing thousands of controlled substances in our communities, Runsdorf abused DEA privilege to handle controlled substances by conspiring with traffickers street drug companies to fabricate fake drug labels to help drug dealers profit,” said DEA Special Agent in Charge of the Houston Division, Daniel C. Comeaux. “This case is another example of the DEA’s continued commitment to addressing the opioid crisis in our country and ensuring that enrollees remain compliant regardless of their stance. We will continue to aggressively pursue and hold accountable anyone who attempts to profit from the conduct of overdoses and violent crimes in our communities.”
“This is an important victory for the American public. Not only will Adam Runsdorf go to jail for his crimes, but he and his company, Woodfield Pharmaceutical, will be handing over $8.4 million worth of illegal products to the government,” said Christopher J. Altemus, Jr., Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office “IRS Criminal Investigation Special Agents are committed to using their forensic skills to help unravel complex security schemes. fraud and money laundering in order to financially disrupt and dismantle major drug trafficking organizations. We will continue to provide our financial expertise as we work alongside our law enforcement partners to bring criminals like Mr. Runsdorf to justice.
This effort is part of an operation by the Organized Crime Drug Enforcement Task Forces (OECDTF). The OECDTF identifies, disrupts and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information on the OECDTF program is available at https://www.justice.gov/OECDTF.
This case is being investigated by the Drug Enforcement Administration; United States Food and Drug Administration Bureau of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Precent Harris County #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard. This case is being prosecuted by Assistant US Attorneys John B. Ross and Jonathan C. Lee.