Statement from Hi-Tech Pharmaceuticals, Inc.: AP Article Nothing But Propaganda for the Government and Pfizer
Monday November 26, 9:45 am ET
NORCROSS, Ga., Nov. 26 /PRNewswire/ -- The following statement is being issued by Hi-Tech Pharmaceuticals, Inc.
An Associated Press article, "Herbal Sex Pills Pose Hidden Dangers," released November 12, 2007, which was reprinted in media outlets nationwide, continues to repeat baseless government allegations against Hi-Tech Pharmaceuticals, Inc. and Jared Wheat. The article repeats government allegations that Jared Wheat "peddled knockoff pharmaceuticals cooked in a Central American lab" and other knowingly false allegations. From the beginning, the government has chosen to try this case in the media, instead of in a court of law. Fox News anchor Greta van Susteren routinely says, "When you have a case, you take it to the judge and jury ... When you don't have a case, you take it to the media." This is clearly what is happening in this case in Federal Court in Atlanta.
While Hi-Tech to this point has taken the high road and tried diligently to wait and let this case be tried in the federal courthouse, Jared Wheat and the company can simply no longer sit back and let the government's ongoing media blitz go without at least a minimal response.
On April 14, 2007, the news organization MSNBC irresponsibly and inaccurately reported that Hi-Tech Pharmaceuticals, Inc. (Hi-Tech), of Norcross, Georgia, engaged in "mob tactics" to quash a federal investigation. It is Hi-Tech's position that these recent, highly reckless, false allegations are an attempt by the prosecution team to slander the well-established reputation of Hi-Tech and Hi-Tech's President, Mr. Jared Wheat, and Vice Presidents, Mr. Stephen Smith and Mr. Tomasz Holda. The defense has moved the District Court in Atlanta to strike these unsupported allegations.
Allegations have been made by the prosecution that Hi-Tech and three company executives, including Jared Wheat, sold generic versions of medicines, such as Lipitor, Viagra, Ambien and Xanax, in Belize, Central America. However, Hi-Tech does not own any interest in any company in Belize, and is, therefore, wrongfully charged in this case. Although Jared Wheat does have an ownership interest in entities in Belize, these entities conduct business in accordance with the laws of the U.S. and Belize.
Prior to starting the business in Belize, Jared Wheat obtained the advice of legal counsel from Belize's former Attorney General, Mr. Glenn Godfrey. In addition, to ensure that the business in Belize complied with American law, Jared Wheat obtained advice from legal counsel in the United States. It has been the practice of Jared Wheat and Hi-Tech for over a decade to rely upon the advice of legal counsel when building the foundation for any business.
Hi-Tech has filed dozens of pretrial motions, which are presently pending before the Court, that demonstrate the reckless disregard by the government for the truth in this case. Unlike the government, which has been content to rely on unsupported assertions of fact, with no proof or support of any kind, Hi-Tech has filed sworn declarations. These documents are available to the media upon request and can also be found at web.hitechpharma.com. Most important for the media to understand is that the salacious allegations are not charged in the indictment. These allegations were used to try to keep Wheat in jail -- an effort that failed. The prosecution team has adopted the adage, "Repeat a lie often enough and people will believe it."
Why haven't most of the media asked a basic question, if the government has proof that Jared Wheat or anyone else was planning murder or blackmail, why have they not been charged? Why have the accusations not been placed in an affidavit, signed by a federal agent or Assistant United States Attorney, before the court as the local court rules require in such circumstances? The reason is quite clear -- the allegations come from a twisting of what some cooperator has told the federal government. Such twisting of seemingly innocuous statements can be converted -- without challenge -- to the most heinous criminal act. Our system of justice simply does not permit such creative exercises. When Chief Federal District Judge Camp questioned AUSA Danzig about these allegations, AUSA Danzig could not decide if he had been blackmailed or not. "We have learned that there was an attempt to blackmail me ... I don't know whether anything ever happened. To my knowledge, I haven't been blackmailed yet. So that is a good sign. But it is certainly worth bringing up to the court." His response to the allegation of a discussion regarding an assassination attempt on an FDA agent was even more alarming. In court, AUSA Danzig did not even respond. At some point a prosecutor has a responsibility to submit evidence. Thus far the defense has challenged the government to produce such evidence, the government has declined and the Court has taken the action is deemed appropriate under the circumstances -- it has granted Jared Wheat's motion for bond pending trial.
Another favorite government accusation is, "The Government also learned that in 2004, Defendant Holda, in the presence of Defendants Wheat, Smith, and other(s), discussed obtaining a firearm silencer for use in attacking a FDA agent conducting a criminal investigation into Hi-Tech's use of Viagra in its Stamina RX product." In relation to this allegation, again the government fails to supply even an approximate date for this alleged discussion. As set out in the a sworn declaration to the court, Jared Wheat was out of the country on medical leave from April 2004 until October 2004. Defendant Holda was arrested on the possession of the silencer charge in June 2004, when the silencer was delivered to Mr. Holda by mistake. What is really happening here is the Government simply wants the world to know that Tom Holda pled guilty to the receipt of the silencer. Never mind that he was never charged with the wild allegations the Government is now spinning. The Government wants the world to believe that the Defendants are bad people rather than the fact that Tom Holda is a former U.S. Army Ranger who has an interest in weapons but who has never -- except in the service of his country -- ever utilized a weapon with the intent to hurt anyone.
AUSA Danzig and his prosecution team were unable to support his far- fetched allegations concerning Jared Wheat and Hi-Tech and the strength of his case was called into question by the court in a June 6, 2007 Order in which the court found: "Stated simply, the Government's presentation at the May 30 hearing indicates the evidence indicative of Jared Wheat's involvement in the charged criminal activities is not as strong as the Court previously thought."
"Grab for the Cash" and Government Seizures
The government has a significant financial interest in the outcome of the case, where they are seeking $19.8 million in cash. The government has also seized over $3 million from Hi-Tech's operating bank accounts and the personal bank account of Jared Wheat, with no legal basis to suggest that it is entitled to such assets. Hi-Tech has submitted an affidavit by a top forensic accountant, Mr. James F. Hart, which clearly shows that every penny of the monies in these accounts originated from the lawful sales of dietary supplements. The government additionally seized Jared Wheat's parent's home because he loaned his parents money. Although this transaction was prior to any of the allegations set forth by the government, and although the loan was repaid in full by Mr. Wheat's parents the government continues to seek forfeiture of their home. This type of forfeiture constitutes an attempt to cause undue hardship for the families of those involved in the case in the hope that the pressure will make them withdraw their support for the accused.
Basic Common Sense and the Needless Death of a Young Mother
The government has grossly overreached in its investigation in this case, which has resulted in the suicide of Jessica Holda, the wife of Hi-Tech Vice President, Tom Holda. Steve Murrin, attorney for Jessica Holda, who represented Jessica until she committed suicide by shooting herself in the head on February 19, 2007, states that she committed suicide due to pressure by AUSA Danzig and Drug Enforcement Agency (DEA) agents to testify against her husband. Jessica took her life after the government "recklessly intimidated" Jessica by giving her a "target letter," which threatened to prosecute her, if she did not cooperate with the investigation. The government threatened to arrest her for trading in a vehicle that the government also wanted to seize, even though the vehicle was not on any seizure list. Mrs. Holda acquired another vehicle, which the government seized claiming that the proceeds from the first vehicle were used to purchase the second vehicle. The government also called the Georgia Department of Family and Children Services in an attempt to have the couple's 1-1/2 year old daughter removed from her custody. Attorney Steve Murrin tried on numerous occasions to request that AUSA Danzig allow him to turn Jessica in to authorities in the event that the prosecution indicted her for trading in the vehicle. In order to try to keep the pressure on Jessica to testify against her husband, the government essentially played "Russian Roulette" with a fragile woman who its representatives knew to have an extreme anxiety disorder. Unfortunately, Jessica succumbed to the pressure and took her own life, rather than be forced to testify against her husband or face the prospect of a threatened jail sentence that would mean her daughter would be put in foster care.
Under normal circumstances any civilized prosecutor would not put a wife -- any wife -- in such a position. The government had no such qualms in this case -- even when they knew of her weakened emotional status. Beyond this however, the question must be asked, where were the supervisors in the U.S. Attorney's Office? What has happened to our National moral barometer when such tactics are exercised on people who are particularly vulnerable? Jessica Holda was not a terrorist -- the Defendants in this case are not violent criminals bent on the destruction of the American way of life. What has happened to our country?
The Truth about Hi-Tech and Its Dietary Supplements
The Defense, on the other hand, has signed affidavits by individuals closest to the alleged criminal conduct that exonerate Hi-Tech and all other co-defendants awaiting trial in the case, of any wrongdoing. Not only are all of the allegations that the government has made in this case only attested to by individuals who have entered guilty pleas for conduct which all of the remaining defendants were victimized, these tainted witnesses are providing completely conflicting testimony.
Hi-Tech has maintained an extremely favorable working relationship with the FDA, its lawyers, and the Department of Justice (DOJ) in Washington over the past several years. When Hi-Tech and the FDA agreed to disagree over the issue of ephedra in 2004-2006, Hi-Tech litigated in a professional manner without malice or utter disregard for due process. When FDA authorities alleged that batches of certain products were tainted in 2003 by the presence of trace amounts of tadalafil, Hi-Tech immediately and voluntarily initiated a recall. Later that year, when Hi-Tech was able to test for the presence of tadalafil, independent and reputable lab analysis, performed by a FDA and DEA licensed testing facility, refuted the FDA's findings sufficiently to enable Hi-Tech to resume marketing its sexual potency products. Hi-Tech's product, Stamina-Rx®, does not and has not ever contained any pharmaceuticals.
Hi-Tech has also filed pleadings in court that correctly reflect Hi-Tech's consistent efforts to ensure that its products always contain the quality and type of ingredients listed on its product labels. Hi-Tech's ongoing testing of its dietary supplement products exceeds current FDA requirements for dietary supplement manufacturers. These documents are also available to the media and customers of Hi-Tech upon request. Every batch of Hi-Tech's products are subject to up to 20 tests for safety and purity.
Contrary to the prosecution's inaccurate description of Hi-Tech, Hi-Tech is an established and well-respected manufacturer and distributor of dietary supplements. Moreover, nothing the prosecution has charged against Hi-Tech, Jared Wheat, or any other Hi-Tech executives involves Hi-Tech's dietary supplement products. Pharmaceutical giant Pfizer has acknowledged that it has an interest in this case and has not been a casual observer, but rather an active participant. Why you may ask? Target Data in Belize was competing in the free world market by selling its medications to customers in Europe, Central and South America and the Caribbean. Target Data sold its generic version of Viagra for as low as 50 cents per pill, and its generic version of Lipitor for as low as 25 cents per pill. Pfizer charges as high as $10 for Viagra and generates over $10 billion a year from its sales of Lipitor. Only the large pharmaceutical companies, which seek to monopolize the dietary supplement industry, as well as the pharmaceutical industry, are afraid of the free market. These pharmaceutical companies attempt to stifle any company or person who may compete against them in any arena and they seek to remove choice from where it rightfully belongs -- with the consumer.
Innocent Until Proven Guilty
Hi-Tech is asking the public not to judge a book by its cover, especially when that cover is a one-sided presentation and to be mindful that everyone is innocent until proven guilty. Hi-Tech has suffered irreparable harm due to these "rush to judgment," twisted allegations, which the government has designed to "poison the well," and Hi-Tech will continue to suffer irreparable harm until Hi-Tech and the others indicted in this case can get on a level playing field in a trial before twelve impartial jurors.
It is Hi-Tech's resounding stance that the slanderous, sensationalized statements made by prosecutors, which continue to be maliciously repeated in the media, have been submitted with complete disregard for the truth. Further, that these statements were designed to tarnish Hi-Tech's reputation in the industry in order to cripple the company's financial resources needed for a righteous defense. It is also an attempt to intimidate Hi-Tech and its executives to plead guilty, rather than continue to see family members, friends, and employees pressured to join in this miscarriage of justice.
Hi-Tech Pharmaceuticals is absolutely not the company that is described in these media articles. Hi-Tech states that it shall remain steadfast in defending its good name and reputation and will aggressively continue to fight this vindictive and overzealous prosecution. Hi-Tech is damaged by such repeated allegations. We work with reputable reporters to stop the repetition, but on occasion, as with the recent AP report, irresponsible journalists, bent on the sensational, publish the Government's tripe despite our communications and request that they examine the facts. This case belongs in front of a jury, but Hi-Tech Pharmaceuticals and Jared Wheat cannot sit back while being skewered by the government through the media and not respond in some fashion. The response, of necessity, will have to be limited before the case makes its way in front of a jury, but fairness dictates that at least part of Hi-Tech's side of the story be presented. Hi-Tech stands behind the safety and efficacy of its products and looks forward to its day in court.
Contact: Helen Hammons for Hi-Tech Pharmaceuticals, Inc., +1-334-782-7961,
[email protected]
