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UPS pays up for illicit pill shipments

March 29, 2013 at 2:29 PM   |   Comments

SAN FRANCISCO, March 29 (UPI) -- United Parcel Service agreed to give up $40 million in payments it charged for shipping products from what federal prosecutors called illicit online pharmacies.

The forfeiture was announced Friday in a written statement by the U.S. attorney's office in San Francisco and covers payments charged by UPS from 2003-2010 for the delivery of pharmaceuticals that were either counterfeit or had been sold without the necessary prescription.

Prosecutors said UPS management was "on notice" from its employees at the time that the drugs were being sold illegally. But despite being aware of the situation, the company failed to take steps to curb the shipments.

UPS cooperated in the case and will voluntarily shore up its restrictions on online drug sales as a result of the forfeiture agreement."Good corporate citizens like UPS play an important role in halting the flow of illegal drugs that degrade our nation's communities," U.S. Attorney Melinda Haag said in the statement. "We are hopeful that the leadership displayed by UPS through this compliance program will set the standard for the parcel delivery industry and will materially assist the federal government in its battle against illegal Internet pharmacies."

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