Tax & Accounting News

Pharmaceutical President Pleads Guilty to Drug Trafficking, Tax Violations

Pharmaceutical President Pleads Guilty to Drug Trafficking, Tax Violations

A pharmaceutical company president has pleaded guilty to drug trafficking and tax violations in a new case investigated by the IRS Criminal Investigation division.

Adam P. Runsdorf, of Boca Raton, Florida, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy on August 22, 2022. U.S. Magistrate Judge Christine L. Stetson was on the bench. 

According to an official release from the Internal Revenue Service (IRS), Runsdorf served as the owner and president of Woodfield Pharmaceutical LLC.

He allegedly conspired with Houston, TX-based drug traffickers to illegally distribute counterfeit cough syrup with intentionally incorrect labels. 

The IRS shared the following specific details of the case, which is being prosecuted by U.S. Attorney Brit Featherstone:

According to information presented in court, Byron A. Marshall, 43, of Houston, utilized Woodfield Pharmaceutical's manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall's drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.

Marshall only paid Woodfield Pharmaceuticals in cash, which was then distributed directly to Runsdorf by Woodfield employees. Taxes were not paid on any of the funds. 

IRS Criminal Investigation Special Agent in Charge Christopher J. Altemus, Jr. shared, "This is an important victory for the American public. Not only is Adam Runsdorf going to jail for his crimes, but he and his business, Woodfield Pharmaceutical, will forfeit to the government over $8.4 million of illegal proceeds."

It is important to note that sentencing has not occurred, but Runsdorf and six co-conspirators have now pleaded guilty to their crimes and are awaiting their sentences. 

Runsdorf faces a maximum penalty of 20 years in federal prison followed by probation.

What do you think about this drug trafficking and tax evasion scheme?

You Might Also Enjoy:

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts