Inspections, Compliance, Enforcement, and Criminal Investigations
April 20, 2011: Powermedica Defendants Sentenced for Conspiracy to Illegally Distribute Human Growth Hormones and Steroids
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and David W. Bourne, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigations, announced the sentencing of defendants Daniel L. Dailey, 51, of Deerfield Beach, Florida, William L. Dailey, 72, of Boca Raton, Florida, Manuel Sanguily, 78, a licensed medical doctor from Milwood, New York, and James M. D’Amico, 58, a former licensed dentist from Cape Coral, Florida. The defendants all worked for Powermedica, Inc., a pharmacy that was located in Deerfield Beach, Florida. The defendants all pled guilty to conspiring to unlawfully distribute human growth hormone (“hGH”) and anabolic steroids. In addition, defendant James M. D’Amico pled guilty to making a false declaration before a grand jury.
U.S. District Court Judge James I. Cohn sentenced defendant James D’Amico on April 18, 2011, to51 months’ imprisonment. Judge Cohn sentenced defendants Daniel L. Dailey and Manuel Sanguily on August 27, 2010, to46 months and 30 months’ imprisonment, respectively. U.S. District Court Judge Marcia G. Cooke sentenced defendant William L. Dailey on March 2, 2011, to18 months’ imprisonment.
Powermedica was a company that promoted and sold hGH and anabolic steroids to customers nationwide for bodybuilding, athletic performance enhancement, and anti-aging purposes. Defendant Daniel L. Dailey was the principal operator, registered agent, and Chief Executive Officer of Powermedica. Daniel L. Dailey’s father, William L. Dailey, was Powermedica’s president and Chief Operating Officer. Manuel Sanguily and James M. D’Amico signed the drug orders that purported to be “prescriptions” for the dispensing of the hGH and anabolic steroids to Powermedica’s nationwide clientele.
In court documents, the defendants admitted that Powermedica placed advertisements in bodybuilding and fitness magazines, created the internet website, www.powermedica.com, and used customer handouts to promote the sale and distribution of hGH and anabolic steroids for bodybuilding, athletic performance enhancement, and anti-aging purposes. On the website and in the handouts, Powermedica provided its customers with instructions and directions on how to use hGH and anabolic steroids for athletic performance and anti-aging.
The defendants all admitted that they knew that the hGH and anabolic steroids Powermedica distributed were being used for bodybuilding, athletic performance enhancement, and anti-aging purposes. They also all admitted that they knew that Powermedica’s sales staff, who were not medically trained, were deciding in consultation with the customers which drugs the customers were to receive. In addition, they all admitted that the licensed practitioners, such as Manuel Sanguily and James M. D’amico, were simply signing the prepared drugs orders without meeting with, talking to, or physically examining the customers, and without reviewing the customer's medical history record and, if obtained, blood test results.
Manuel Sanguily admitted to signing more than 2000 drug orders for Powermedica customers and earned approximately $50,673.69. James M. D’Amico admitted that he signed drug order for more than 300 customers and earned approximately $101,000 for his work, and also admitted that he falsely stated to a grand jury that he had never held himself out as a licensed medical doctor.
Mr. Ferrer commended the efforts of the FDA’s Office of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Ellen L. Cohen and Special Assistant U.S. Attorney Jason Hadges.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.