The department will investigate what went wrong in its pursuit of the case, in which it charged the parcel giant with conspiring to deliver illegal drugs.
Prosecutors in 2014 obtained a grand jury indictment against FedEx on charges it had knowingly accepted shipments of illegal pharmaceuticals from online pharmacies. Rather than settle out of court, FedEx decided to take the case to trial, choosing to have the case heard directly by U.S. District Judge Charles R. Breyer in San Francisco instead of a traditional jury trial.
Just four days into the trial, however, the Justice Departement abruptly dropped all charges despite alleging in its opening statements that FedEx took advantage of its “legitimate” corporate identity to engage in criminal behavior.
Breyer commended DOJ for its decision to drop the charges, noting that the defense was “factually innocent and did not have intent.”
“The act of dismissal is entirely consistent with government’s overarching obligations to seek justice, even at the cost of some embarrassment,” Breyer said in court.
One key to the case against FedEx, according to U.S. Drug Enforcement Administration, Assistant U.S. Attorney John H. Hemann, was the “dozens and dozens” of internal e-mails that would supposedly show that FedEx knowingly shipped drugs for pharmacies that were “shady, sneaky” and “on the run” for over a decade.
FedEx, however, maintained that these e-mails were taken out of context and, more importantly, the company had been in constant communication with the DEA about the fraudulent pharmacies, even going as far as to suspend deliveries from any pill distributor identified by investigators as engaging in illegal action.
Now, the U.S. Attorney in San Francisco Brian Stretch has assigned the office’s deputy criminal chief to review the case, an investigation that could take as long as two months. He told Reuters the department will examine why prosecutors brought the case in the first place, what oversight supervisors provided and what role officials in Washington D.C. played.
“This is not a finger pointing exercise,” Stretch said in an interview last week. “This is an exercise with the singular purpose to find lessons learned, and apply them to current and future cases.”
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now