ST. LOUIS – The founder of a pharmaceutical company in Maryland Heights is among 10 other medicinal executives and distributors charged with illegally selling nearly 70 million opioid pills in Houston, Texas.

According to the U.S. Department of Justice, Eric Bailey, 59, pleaded guilty in connection to illegally selling opioid pills with a street value of $1.3 billion. Bailey was among other distributors from Texas, Tennessee, North Carolina, Arizona and Florida charged.

According to court documents, Bailey owned and operated Emed Medical Company, a pharmaceutical drug distributor. Baliey controlled Emed’s purchase and sales of controlled substances, including oxycodone and hydrocodone pills, to Houston-area pharmacies.

According to the DOJ, Houston is nationally recognized as a “hot zone” for the distribution of pharmaceutical opioids onto the black market.

Reportedly, the distributors, including Bailey, avoided the Drug Enforcement Administration’s oversight by avoiding detection of their illegal sales by implementing high prices and low purchasing limits of the opioid pills.

The additional 12 charged included:

• Sheldon Dounn, 71, of Plantation, Florida
• Richard “Dick” Osbourne, 78, of Memphis, Tennessee
• Courtney Rotenberry, 45, of Savannah, Tennessee
• Hernan Alvarez, 52, of Phoenix, Arizona
• Joshua Weinstein, 50, of Miami, Florida
• Derrick “Chad” Atkinson, 40, of Lumberton, North Carolina
• Jason Smith, 43, of Plantation, Florida
• Joseph Pesserillo, 38 of The Villages, Florida
• Cassandra Rivera, 40 of Ft. Lauderdale, Florida.

The DOJ said in December 2021, Bailey was notified by a drug manufacturer that Emed needed to implement improved due diligence programs; otherwise, the manufacturer would discontinue their services with Bailey.

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Reportedly, Bailey did not comply and instead purchased thousands of oxycodone and hydrocodone pills from a new drug manufacturer with intent to distribute them to Houston-area pharmacy customers. The DOJ said Bailey knew these Houston customers would unlawfully distribute the opioid pills.

According to the DOJ, Bailey pleaded guilty to one count of possession with intent to distribute hydrocodone and oxycodone; he faces a maximum penalty of 20 years in prison.

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