LOS ANGELES
Two Maryland brothers who owned a pharmaceutical wholesale company were sentenced to lengthy federal prison terms for running a nationwide drug diversion scheme that endangered HIV patients and compromised the U.S. drug supply, authorities stated this week.
Patrick Boyd, 47, and Charles Boyd, 43, of Easton, Maryland, owned Safe Chain Solutions, a licensed wholesale distributor. Charles Boyd served as CEO, while Patrick Boyd oversaw sales.
At trial, prosecutors showed the brothers conspired with at least five black-market suppliers to obtain deeply discounted HIV medications through illegal patient “buyback” schemes.
One supplier testified he purchased drugs from patients on the street, stripped prescription labels, and shipped them in used boxes — including packaging taken from trash. Many bottles were dirty, unsealed, and showed signs of prior use.
Pharmacies began raising concerns as early as August 2020, reporting mislabeled bottles and instances where entirely different drugs were inside.
In one case, a customer warned the products “did not meet safety standards” and posed risks to patients.
Despite repeated complaints, the Boyds continued purchasing and reselling diverted drugs, using falsified paperwork to mislead pharmacies and regulators.
Evidence showed they concealed the scheme from their own compliance director and withheld critical information from attorneys and federal regulators, including failing to report incidents to the Food and Drug Administration.
One HIV patient testified he unknowingly ingested an antipsychotic drug instead of his prescribed medication and lost consciousness for 24 hours. Missing doses of HIV medication can increase viral load and raise transmission risk, prosecutors said.
Between April 2020 and September 2021, the defendants distributed more than 28,000 bottles of diverted HIV drugs, paying $92.8 million and billing Medicare, Medicaid, and private insurers.
A federal jury in October 2025 convicted both men of multiple counts, including wire fraud and trafficking in misbranded drugs.
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Charles Boyd was sentenced to 20 years in prison
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Patrick Boyd was sentenced to 18 years in prison
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Forfeiture ordered: $21.85 million
A co-defendant, Adam Brosius, previously pleaded guilty and was sentenced to 97 months in prison.
Key facts:
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Scheme: Nationwide diversion and resale of HIV medications
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Volume: 28,000+ bottles distributed
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Payments: $92.8 million for black-market drugs
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Victims: HIV patients exposed to unsafe or incorrect medications
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Risk: Compromised drug safety, increased public health dangers
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Investigators: FBI and HHS Office of Inspector General
Federal prosecutors said the case highlights the serious risks posed by pharmaceutical diversion schemes, which can introduce contaminated, ineffective, or mislabeled drugs into legitimate supply chains.