Source: United States Department of Justice
Remarks as Prepared for Delivery
Good evening. Thank you for the invitation to return to Jefferson Hall. Almost 30 years ago, in the spring of 1995, I was a probationary member of the Jefferson Literary and Debating Society. I made some lifelong friends within these walls – several of whom are in attendance this evening. And I am pleased to confirm that (as Virgil wrote) it is, in fact, quite pleasing to remember these things.
After graduating from Mr. Jefferson’s University in 1998, I went on to law school, and subsequently worked both in the private sector and as a local and federal prosecutor. Since 2021, I have served as the Deputy Assistant Attorney General for the Department of Justice’s Consumer Protection Branch (CPB or the branch). The branch brings both criminal and civil cases impacting our nation’s consumers. Based in Washington, D.C., we handle cases in federal courts across the United States. We have nearly 250 staff, made up of federal agents, investigators, paralegals and contractors working alongside over 100 trial attorneys.
We frequently partner with our local counterparts at various U.S. Attorney’s Offices across the country. We also work closely with numerous federal agencies, including the Food and Drug Administration (FDA), the Federal Trade Commission (FTC), the Consumer Product Safety Commission, the National Highway Traffic Safety Administration (NHTSA) and over a dozen law enforcement partners, including the FBI, the DEA, the United States Postal Inspection Service, the Department of Homeland Security and the Department of Health and Human Services Office of Inspector General.
Given the breadth of resources at our disposal, the branch handles a broad and diverse enforcement portfolio focused on protecting consumers’ health, safety, economic security and identity integrity. Our work benefits all Americans. For example, we:
- work with DEA on combating the opioid epidemic;
- work with the FDA on food, drug and medical device safety;
- work with FBI and the United States Postal Inspection Service on fighting scams and telemarketing fraud and deceptive business practices;
- work with the FTC to address deceptive business practices and consumer privacy violations; and
- work with Consumer Product Safety Commission in preventing dangerous products from harming consumers.
The branch also has a dedicated team of attorneys focused on defense of the Food and Drug Administration, the Federal Trade Commission and the Consumer Product Safety Commission.
The branch’s criminal and civil enforcement efforts fall into two categories. First, the branch takes affirmative measures to protect consumer health and safety. Those measures often target unlawful conduct related to drugs (including prescription opioids), medical devices, food, tobacco, automobiles and consumer products. Second, CPB takes affirmative measures to prevent and punish consumer fraud, including addressing deceptive practices and data privacy violations, as well as schemes targeting seniors, immigrants, veterans and other vulnerable populations.
These are big problems. Bad acts rarely occur in isolation, and bad actors rarely act alone. Thus, we often target an entire “ecosystem” of bad actors. And because enforcement actions are not “one-size-fits-all” endeavors, we take advantage of our dual criminal and civil authority to employ a “multiple tools” approach against bad actors that can include criminal prosecutions, civil lawsuits, injunctions and other efforts that may not result in filing a federal case (such as sending warning letters and working with foreign law enforcement), or a combination of one or more of these tools.
To illustrate how we implement our strategies on the ground, I would like to highlight three areas – opioids, consumer privacy and elder fraud.
From 1999 to 2020, approximately 500,000 Americans died because of an overdose of prescription or illicit opioids. And opioid overdose deaths remain near an all-time high, with nearly 250,000 Americans lives lost due to opioid-caused overdoses in the last three years. Tragically, drug overdoses are the leading cause of injury-related death in the United States.
Prescription opioids remain a significant contributor to overdose deaths. Combating prescription opioid abuse has been a priority at the Consumer Protection Branch. Over the years, the branch has led several of the largest enforcement actions brought against opioid manufacturers, distributors and chain and local pharmacies.
Our efforts in this space are a prime example of our use of the “ecosystem” and “multiple tools” strategies. When one considers the parties involved in getting prescription opioids onto the street, one may typically think only of a “shady” prescriber, an “indifferent” pharmacist, and an “unscrupulous” patient. But the prescription opioids “ecosystem” is much broader. Beyond the “usual suspects” I just mentioned, the distribution chain also includes: the pharmaceutical company that secured approval from FDA for the opioid; the company that manufactures the drug; the companies involved in getting the drug from the manufacturer to pharmacies (known as distributors), and the pharmacies that employ individual pharmacists. Stopping the oversupply of prescription opioids to populations addicted to these dangerous drugs requires case-specific actions against all bad actors along the distribution chain, and the branch has brought civil and criminal enforcement actions against bad actors at every link on that chain.
First, we have brought large-scale criminal and civil actions against several opioid manufacturers:
- The branch brought a felony criminal action against Purdue Pharma, the maker of OxyContin, in November 2020, relating to the company’s effort to increase its sales by (1) making misrepresentations to DEA about the legitimate market demand for OxyContin (allowing the company to manufacture more of its drug than necessary to meet legitimate demand) and, (2) by selectively marketing to high-prescribing doctors whom the company suspected of servicing “patients” who either abused the drug themselves or diverted it into illicit markets. As part of its plea, Purdue has agreed to the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of over $3.5 billion and an additional $2 billion in criminal forfeiture.
We also have brought civil cases against some of the nation’s largest distributors:
- The branch has sued two of the largest drug distributors in country, Walmart and AmerisourceBergen, alleging that companies violated the Controlled Substances Act by failing to report suspicious orders of opioid products (orders that suggested the potential diversion of opioids) that they were required by law to report to DEA.
- And last November, in a case brought by the branch and the U.S. Attorney’s Office for the District of Puerto Rico, a federal court in Puerto Rico entered a consent decree requiring Droguería Betances, one of Puerto Rico’s largest distributors, to pay $12 million and make extensive improvements to its compliance program. The complaint alleged that Betances failed to report hundreds of suspicious orders for opioids and other controlled substances, including suspicious orders for fentanyl and oxycodone (both of which are frequently misused products and significant contributors to the opioid epidemic).
Keeping with its “ecosystem” approach, the branch also is pursuing civil actions against chain pharmacies. For example, the government’s complaint against Walmart alleges that, as an operator of pharmacies at retail locations across the United States, Walmart knowingly filled thousands of controlled substance prescriptions that were not issued for legitimate medical purposes or in usual course of medical practice.
Finally, the branch does local-impact work. When smaller pharmacies, pharmacists, pharmacy owners and prescribers neglect their obligations, they can flood a community with addictive and dangerous pills. The branch has brought injunctive and civil penalty cases under the Controlled Substances Act against such actors in Tennessee, Utah, Ohio, North Carolina, Maryland and Florida. Most recently, we secured a permanent injunction against a doctor in Utah who catered to requests for opioids and other controlled substances, using a “virtual office” to service cash-paying customers without an examination or using text messages to arrange the exchange of prescriptions for cash.
Unfortunately, the prescription opioid-abuse ecosystem extends beyond traditional, legitimate chain pharmacies. As a result, the branch and its law enforcement partners are also working to stem the flow of illicit, counterfeit fentanyl. The urgency of disrupting this activity is clear. Last year, the DEA and its partners seized over 50 million fake prescription opioid pills — more than double the amount seized in 2021. Although some actors involved in illicit fentanyl production and distribution are foreign actors (like the infamous Sinaloa Cartel), domestic actors bear responsibility as well. This area is a unique intersection between traditional corporate white-collar crime and illicit drug trafficking.
At the branch, we are closely scrutinizing corporate bad actors that are aiding the manufacture, distribution, and sale of counterfeit pills, such as e-commerce sites, social media platforms and chemical companies. And we are also focused on companies that are supplying the traffickers with the equipment they need to make the counterfeit pills — pill presses and counterfeit dies. Some of these machines can produce over a million pills in an hour. Even smaller desktop versions can make approximately 1,800 pills in an hour, more than enough to flood a community with deadly counterfeit pills.
We are already seeing success. Just last week, the department announced that eBay has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act in connection with the sale of thousands of pill presses and encapsulating machines on its platform. eBay is alleged to have failed to comply with regulations regarding pharmaceutical manufacturing equipment in connection with pill presses and encapsulating machines sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. Our investigation found that hundreds of eBay’s pill press buyers also purchased counterfeit molds, stamps, or dies (allowing the production of pills that mimicked the products of legitimate pharmaceutical companies) and that many of eBay’s pill press buyers have been prosecuted in connection with trafficking illegal counterfeit pills.
Shifting gears, I would like to spend a few minutes on the topic of consumer privacy — ensuring that personal information is protected from unauthorized access and misuse. In an era where data is a valuable commodity, the misuse and dissemination of consumers’ private information poses significant dangers, both to individuals and society at large. When sensitive personal data falls into the wrong hands, it can lead to a wide array of problems, ranging from identity theft and financial fraud to reputational damage and emotional distress. Identity theft, for instance, can cause significant financial harm, often taking years to repair. Furthermore, the unauthorized use of private data can lead to invasive marketing practices, manipulation through targeted advertising, and even individual exploitation. This not only infringes upon individual privacy rights, but also raises questions as to the ethical boundaries of data use, including the responsibilities of corporations and governments in protecting consumer data and upholding privacy standards. Given the stakes, the Branch has been at the forefront of the department’s efforts to mitigate the exploitation of private personal data.
Two recent cases highlight those efforts. Last July, the branch, together with the FTC, announced that Amazon.com and one of its subsidiaries had agreed to a permanent injunction and a $25 million civil penalty as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act and the Federal Trade Commission Act relating to Amazon Alexa and the companies’ retention of children’s voice recordings indefinitely by default, in violation of the requirement that these recordings be retained only as long as reasonably necessary to fulfill the purposes for which they were collected. Other alleged violations include making deceptive representations that Alexa users could delete their or their children’s voice recordings, including audio files and transcripts and their geolocation information, when, in fact, Amazon on some occasions failed to delete all such information.
And in May 2022, a federal judge entered an order requiring Twitter to pay $150 million in civil penalties and implement robust compliance measures to protect users’ data privacy. The order settled allegations that Twitter violated the FTC Act and an administrative order issued by the FTC by misrepresenting how it would make use of users’ nonpublic contact information — including by telling consumers that Twitter collected telephone numbers and email addresses for account-security purposes, when, in fact, it also used that information to help companies send targeted advertisements to consumers.
Elder fraud, including mass-mailing and “tech support” scams, has had a significant negative impact on our senior population. Financially, the consequences are often severe, as seniors are defrauded of their life savings, retirement funds, or assets they had intended to pass on to their families. These financial losses can force a drastic change in lifestyle, a reduced ability to afford healthcare or other necessary expenses, and an increased dependency on social services or family members. The psychological and emotional effects are equally damaging. Victims of elder fraud frequently experience feelings of shame, embarrassment, and guilt for having been deceived. This emotional distress can lead to a decline in mental health, exacerbating conditions like depression and anxiety.
The societal implications of elder fraud are also profound. It erodes trust in legitimate businesses and services, particularly in the realms of technology and communication, where seniors are already often hesitant. Additionally, the prevalence of such scams strains legal and financial systems, as resources are required to combat these fraudulent activities and support affected individuals. As the senior population has grown, understanding and addressing the impacts of elder fraud, including mass-mailing and “tech support” scams, has become increasingly critical.
The branch plays a crucial role in combating elder fraud. We do this through a variety of methods, including:
- The prosecution of fraudsters: Over the past decade, the branch has aggressively prosecuted individuals and entities responsible for committing fraud against older adults. This includes cases involving the perpetrators of mass mailing scams, “tech support” scams, and telemarketing scams, as well as cases targeting the networks of so-called “money mules” who collect payments from victims. From an ecosystem perspective, we have targeted actors at all levels, including the scheme masterminds and their associated ad creators, the mailers, the VoIP providers, the call center operators, the payment processors, and others across the globe. Using the “multiple tools” approach, these efforts have included civil injunctive actions, criminal prosecutions, and warning letters. This multi-faceted approach has shut down schemes that had been amassing billions of dollars in victim payments and has returned millions of dollars to victims.
- Public education and outreach: Recognizing the importance of prevention, the branch is also involved in varied efforts to educate seniors and their families about the risks of fraud and how to protect themselves. This includes providing resources and information through public service announcements, websites, and other outreach programs. Education is a key tool in empowering seniors to recognize and avoid scams.
- Victim Support Services: We also work to provide support and assistance to victims of elder fraud. This includes efforts to help victims recover from the financial and emotional impact of fraud, as well as initiatives to improve the reporting and tracking of elder fraud cases to prevent future victimization.
As you can see, the work of the branch in combating elder fraud is multifaceted, involving enforcement, education, collaboration, and support for victims. All these efforts are necessary to protect against financial harm and abuse.
Thank you for the opportunity to discuss the work of the Department of Justice’s Consumer Protection Branch. Before I conclude, however, I would like to spend a moment talking about the importance of public service.
Some of you are at a point in your lives when you will be making decisions about your careers soon. No matter what field you chose to pursue, please consider dedicating a portion of your professional life to public service. The founder of this university wrote that “[t]here is a debt of service due from every man to his country, proportioned to the bounties which nature and fortune have measured to him.” As students at the University of Virginia, you have been blessed with good fortune. Public service offers a pathway to repay that debt — to contribute meaningfully to society and to strengthen our democracy by shaping policies and enforcing laws that improve our daily lives, and thereby helping to promote equal justice under law.
Engaging in public service, particularly in times of challenge and change, requires fidelity to principles greater than oneself. It requires not only deep knowledge, but also compassion, resilience and a steadfast commitment to ethical conduct. And through public service, individuals can drive significant legal and social reforms, influencing the direction of our society and shaping the legacy we leave for future generations.
Dedicating time to public service also will enrich you, both personally and professionally. The impact of this work extends beyond the immediate benefits to the community — it also helps to shape visionary leaders, well-versed in navigating complex challenges and capable of making thoughtful decisions in difficult circumstances.
I have spent almost 25 years working in the legal profession, with most of that time in government. While I found my time in private practice worthwhile, my experience with the Department of Justice has been exceptionally rewarding. I hope that all of you will consider spending a portion of your careers engaging in public service. Thank you, again, for the opportunity to return to Grounds. I appreciate it.