Two Maryland brothers, Patrick Boyd and Charles Boyd, have been convicted by a federal jury in Fort Lauderdale for their involvement in a scheme to distribute more than $92 million worth of misbranded HIV drugs. The pair owned and operated Safe Chain Solutions, a pharmaceutical wholesale company. Their co-owner, Adam Brosius, had previously pleaded guilty to conspiring to commit wire fraud.
“This case exposed a reckless disregard for human life,” said U.S. Attorney Jason A. Reding Quiñones. “The defendants put profit ahead of patient safety, moving more than $92 million in tampered, black-market HIV medication through pharmacies across the country. Our Office will continue holding accountable those who endanger the public and betray the trust that underpins our healthcare system.”
Evidence presented at trial revealed that the Boyds worked with at least five suppliers from the black market to obtain HIV medications through patient buyback schemes. These drugs were then resold to thousands of pharmacies nationwide, including in South Florida, using falsified documents to make them appear legitimate.
One supplier, Peter Khaim of Boulevard 9229, testified about buying HIV drugs directly from patients on the street and repackaging them—sometimes using boxes found in the trash—before sending them to Safe Chain Solutions. On one occasion, he shipped approximately $500,000 worth of HIV medications in a single box. Despite bottles being dirty or missing instructions, the Boyds accepted and distributed them with false paperwork.
Safe Chain Solutions purchased over $35 million in black-market HIV drugs from Boulevard 9229 and more than $42 million from Gentek, another supplier based in Miami whose leader has already received a 15-year prison sentence.
Pharmacies frequently complained about receiving tampered or incorrect medication from Safe Chain Solutions. There were reports of bottles labeled as HIV medication containing other substances such as Seroquel or painkillers. One patient who took Seroquel instead of his prescribed medication lost consciousness for 24 hours. Missing doses can increase viral loads and community transmission risks.
A former attorney for the Boyds testified that they concealed important information while seeking legal advice about complaints and reporting obligations to the Food and Drug Administration (FDA). Evidence also showed that many incidents involving incorrect or tampered medications were not reported to the FDA.
Testimony from Safe Chain Solutions’ former Director of Compliance indicated she repeatedly warned the Boyds about sourcing from black-market suppliers but was ignored. Charles Boyd allegedly told her lawyers had approved continuing business with Boulevard 9229 despite contrary evidence. Another compliance manager said she was instructed not to document concerns in writing and described dismissive responses from management.
After a multi-week trial, both Boyds were convicted on multiple counts: conspiracy to introduce misbranded drugs; introducing misbranded drugs into interstate commerce; conspiracy to traffic medical products with false documentation; conspiracy to commit wire fraud; and wire fraud itself.
Each faces significant prison time: up to five years for conspiracy to introduce misbranded drugs; three years for each count related to interstate commerce; 15 years for trafficking medical products with false documentation; and up to 20 years each for conspiracy and actual wire fraud offenses. Sentencing will be determined by a federal district court judge according to U.S. Sentencing Guidelines.
The case was investigated by HHS-OIG Miami Regional Office and FBI Miami Field Office. Assistant U.S. Attorney Alexander Thor Pogozelski and Trial Attorney Jacqueline Zee DerOvanesian prosecuted the case, while Assistant U.S. Attorney Nicole Grosnoff handled asset forfeiture matters.
Further details are available via the District Court for the Southern District of Florida website at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov under case number 24-cr-20255.
