Wausau man sentenced for fraud scheme involving illegal distribution of prescription drugs, money laundering

Federal agents from the Internal Revenue Service were seen removing cardboard boxes from...
Federal agents from the Internal Revenue Service were seen removing cardboard boxes from Zipperer Financial LLC in Wausau in January 2019.(WSAW)
Published: Sep. 10, 2021 at 11:32 AM CDT
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MADISON, Wis. (WSAW) - A 54-year-old Wausau man pleaded guilty in federal court today to one count of mail fraud and one count of money laundering and was sentenced to 6 months in federal prison.

According to a 26-count indictment, Kenneth Zipperer imported foreign-sourced prescription drugs from an internet pharmacy company in India via the U.S. Mail and Express Mail Service. None of the drugs were approved by the U.S. Food & Drug Administration for human consumption in the United States. The indictment alleged that Zipperer distributed many of the foreign-sourced prescription medications to his insurance clients in person, primarily at the business office for Zipperer Financial LLC in Wausau. Zipperer pleaded guilty to Counts 3 and 21 of the indictment.

“Distributing unapproved prescription drugs is illegal and puts consumers’ health at risk. In order to protect public health and safety, our office works closely with our law enforcement partners to identify and prosecute those who seek to profit from selling unapproved prescription drugs,” said Acting U.S. Attorney Timothy O’Shea.

“Patients who take foreign unapproved prescription drugs are at serious risk of harm, as the drugs have no guarantees of safety or efficacy and hold the potential to harm those who use them,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We will continue to investigate and bring to justice those who put public health at risk.”

The charges against Zipperer were the result of an investigation conducted by the U.S. Postal Inspection Service, U.S. Food & Drug Administration - Office of Criminal Investigations, IRS Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Zipperer was also ordered to pay a $150,000 fine and $483 in restitution.

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