Feds seize $18 million from NECC owners

Prosecutors seized $18 million from accounts linked to the owners of the defunct New England Compounding Center (NECC), whose tainted products led to the 2012 meningitis outbreak that killed at least 64 people and sickened about 750.

According to prosecutors, the money was seized from 13 financial institutions, from accounts owned by the majority shareholders of the pharmacy and its head pharmacist, Barry J. Cadden.

NECC pharmacist owner charged with second-degree murder

Cadden was one of two pharmacists recently charged with second-degree murder. Glenn A. Chin, the supervising pharmacist, was also charged with second-degree murder. Prosecutors allege they knowingly shipped steroids contaminated with fungi. In addition to the two pharmacists, 12 other NECC employees were charged with crimes that included racketeering, mail fraud, conspiracy, contempt, and violations of the Food, Drug and Cosmetic Act.

Specifically, $1.5 million was seized or frozen from accounts linked to Cadden; $16.8 million in assets were seized or frozen from accounts linked to Carla Conigliaro, NECC’s majority shareholder, and her husband, Douglas Conigliaro.

“Our position from square one has been that the first priority of any recovery from the Cadden and Conigliaro families should [be] the victims of the NECC tragedy,” Thomas Sobol, a lawyer representing outbreak victims, told the Boston Globe. “Every indication seems to show that the Department of Justice… shares this goal. Since it appears this development adds to the funds already set aside, this is an excellent development.”