American Pleads Guilty to Smuggling Misbranded Medicine

A Providence, Rhode Island resident pleaded guilty on February 8th, 2011, of smuggling erectile dysfunction drugs from the People’s Republic of China falsely labeled as herbal dietary supplements.

Anny L. Puello, 32, the owner of JMM LLC, admitted importing thousands of ED drugs that were shipped from a Chinese supplier, Chengdu Kang Quan Health Product Company (CKQHC), bearing false shipping labels or invoices.  CKQHC falsely described the packages as “Cinnamon Extract,” “Ginseng Extract,” or “Multivitamin Samples” on the labels, reports the Food and Drug Administration Office of Criminal Investigations.

Puello’s company used a machine to package the capsules for distribution and labeled their packages “Made in the USA.” After packaging, JMM LLC distributed the capsules to retailers and distributors in Rhode Island, Connecticut and elsewhere.

In October 2008, the R.I. FDA/OCI Task Force, comprised of agents from ICE – Homeland Security Investigations; Internal Revenue Service – Criminal Investigations Division; U.S. Postal Service Inspectors; Rhode Island State Police; North Providence Police; East Providence Police; and the Rhode Island Department of Attorney General, executed federal search warrants at Puello’s business and residence, and seized thousands of pills, pill packaging materials including a labeling machine, computers, and business and shipping documents. Puello was arrested in June 2010.