Palm Beach Post Staff Writer
Tuesday, August 19, 2008
WEST PALM BEACH — Two Fort Lauderdale brothers are in the Palm Beach County jail, accused of master-minding a sophisticated retail-theft ring that extended from Broward County to North Carolina, Ohio and Texas, according to federal agents.
Nasir "David" Khan and Asif "Jordan" Khan are accused of using professional shoplifters, known as boosters, to steal over-the-counter medicine and health and beauty products from chain stores, such as CVS, Target, Rite-Aid and Walgreens.
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They would then buy the merchandise from the boosters at sharply reduced prices, repackage it at a warehouse in Sunrise and re-sell it, according to a federal indictment handed up by a Broward County federal grand jury.
The government alleges that the two, with the help of five others who were also indicted and other unindicted co-conspirators, bought and sold more than $8 million worth of stolen goods. Roughly $50 million has passed through their company, PharmaCare Health, since 2003, according to the U.S. Attorney's Office.
On PharmaCare's web site, it describes its mission as providing goods in a "prompt, honest and courteous manner."
Instead, agents for the FBI, IRS and Broward County Sheriff's Office, said the brothers were involved in a elaborate conspiracy, that involved boosters working in Texas, Ohio and North Carolina. When agents raided the PharmaCare warehouse in Florida and at another location in North Carolina, they seized about $3.2 million worth of stolen goods, much of it with security tags still attached.
Attorney Larry McMillan, who represents the two brothers, said they will be arraigned Friday in federal court in West Palm Beach. Born in Pakistan, both were denied bond when they appeared in court last week.
While described by government attorneys as flight risks because one had traveled to Saudi Arabia and another owns a company in Belize, McMillan said they have strong family ties in South Florida. Their mother, other siblings, wives and children life in here, he said. Jordan Khan worked as an assistant CVS manager.
Both face nine charges, including conspiracy to defraud the United States, transporting stolen goods and money-laundering. They face a maximum 20 years in prison and a $500,000 fine. The government is also seeking a return of $7.9 million.
Duane Schneider, who was listed as the owner/president of PharmaCare, and Michael Spencer, the David Khan's former brother-in-law, face the same nine charges. Also indicted on seven charges were North Carolina residents James Foy, Michael Dagnen and Edward Smith.