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Copyright 2000 The New York Times Company  
The New York Times

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March 21, 2000, Tuesday, Late Edition - Final

SECTION: Section A; Page 18; Column 1; National Desk 

LENGTH: 905 words

HEADLINE: U.S. and Thai Officials Attack Internet Sales of Medicine

BYLINE:  By ROBERT PEAR 

DATELINE: WASHINGTON, March 20

BODY:
Federal officials said today that they had, for the first time, shut down foreign Web sites involved in the fast-growing business of selling prescription drugs over the Internet to American consumers.

Agents of the United States Customs Service joined Thai authorities in raiding online pharmacies based in Thailand, which officials say is a major overseas source of powerful steroids, tranquilizers and other drugs that can be bought in the United States only with a prescription. Twenty-two people were arrested in Thailand and accused of violating Thai drug laws and export laws. Six people were arrested in Albany, accused of buying drugs from a Thai online pharmacy. Thai officials are also investigating possible violations of a new Thai money-laundering law.

American officials said they alerted Thai authorities to the problem and received excellent cooperation from Thai narcotics and police officers, as well as from the government agency that regulates food and drug products in Thailand.

American and Thai officials said they had raided offices and warehouses used by online pharmacies in Bangkok and Chiang Mai, in northwest Thailand. They seized 20 computers, 245 parcels ready for shipment to the United States and more than 2.5 million doses of drug products. The drugs included anabolic steroids, Valium, Viagra, fen-phen and Tylenol with codeine, as well as Xanax, a tranquilizer, and Rohypnol, a powerful sedative sometimes described as a "date rape" drug.

The actions are the latest effort by the United States to deal with the explosive growth of electronic commerce in prescription drugs. Officials said they planned to use the Thai operation as a model for cooperation with law-enforcement agencies in other countries.

Federal officials said they were concerned about drugs imported from dozens of online pharmacies in Mexico, Switzerland, Britain, New Zealand and elsewhere. It is unclear whether those countries will cooperate with American investigators.

Raymond W. Kelly, the commissioner of the Customs Service, said: "Many of these Internet pharmacies are fly-by-night operations set up overseas to avoid U.S. law. They have little regard for patient safety."

In December, President Clinton urged Congress to regulate the sale of drugs over the Internet. His proposals focused on companies based in the United States. He did not say what he would do about foreign online pharmacies, which may pose bigger problems because they are less likely to demand a prescription before selling drugs to Americans.

In 1999, the Customs Service seized 9,725 packages with prescription drugs mailed to the United States -- about 4.5 times as many as in the previous year. In the last six months, customs agents in New York, Los Angeles and Washington have seized more than 2,600 parcels of prescription drugs bought from Internet pharmacies in Thailand.

A main target of the Thai raids was Vitality Health Products, in Bangkok, whose Web site promised "prescription-free pharmaceuticals by e-mail at incredibly low prices."

Customs investigators in Albany said the agency had intercepted many drug shipments from Vitality, and the Albany office is leading the American side of the investigation, with computer experts from the "cybersmuggling center" of the Customs Service in Fairfax, Va.

An investigator from the smuggling center is in Thailand, sifting through computer records.

In an interview today, Kevin A. Delli-Colli, director of the center, said: "Eighty percent of the customers we identified from the Thai data are in the United States. The average order was for $200."

Vitality seemed to have a medicine for every malady:

"Hair loss? Try Minoxidil and Finasteride (Propecia). Erection problems? Try Viagra, Yohimbine and Trazodone. Aging skin? Try Retin-A and AHA creams. Poor memory, I.Q.? Try Piracetam, Hydergine and Vinpocetine. Hormone replacement? Check out testosterone & Premarin."

At its Web site, Vitality said, "We guarantee to send your order discreetly packed, without any reference to the contents on the outside of the packet." The company even had a Web page on "customs problems," which told consumers what to do if an order was seized.

Customs officials said Vitality filled orders with drugs obtained from what appeared to be a legitimate pharmacy in Bangkok. College-age employees took orders, addressed envelopes, wrapped the drugs in newspaper and stuffed them into greeting cards. Parcels were sent with no return addresses.

Thomas M. Virgilio, head of the customs office in Albany, said investigators had arrested people there who bought drugs from Vitality. "These are not major smugglers, but they generally know that what they're doing is illegal," he said.

Mr. Virgilio said the imported drugs were potentially dangerous because the controls over quality were lax. "A lot of this stuff is being cooked up in somebody's back room in Thailand," he said.

In addition, Mr. Virgilio said, some of Vitality's customers were taking dangerous combinations of drugs without a doctor's supervision.

In Chiang Mai, Thai officials, accompanied by United States customs agents, arrested eight workers in a warehouse for an online pharmacy. After downloading orders from computers, the authorities said, the employees hid drugs in books, picture frames and jigsaw puzzle boxes, then shipped them to the United States, Germany, France and Japan.

 http://www.nytimes.com

GRAPHIC: Chart: "INTERDICTIONS: Ordered Online, Sent From Abroad"
Seizures of prescription drugs sent illegally by mail, for the fiscal years shown.
 
Graphs track the number of seizures and quantity of illegally sent prescription drugs since 1995. (Source: U.S. Customs Service)
      

LOAD-DATE: March 21, 2000




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