chevron-down Created with Sketch Beta.
February 10, 2023

David J. Miller and Minnesota Independent Cooperative, Inc., Convicted in Multi-Million-Dollar Prescription Drug Diversion Scheme

A federal jury has convicted David Jess Miller and his company, Minnesota Independent Cooperative, of several charges relating to the fraudulent and unlicensed distribution of prescription drugs. Indictments filed in two districts—the Northern District of California and the Southern District of Ohio–led to the two-week trial.

Miller was a key participant in an enterprise responsible for fraudulently distributing diverted prescription drugs and potentially harmful tampered medication. The fraud targeted medications to treat mental disorders, hepatitis C, and HIV, among others. According to prosecutors, Miller owned Minnesota Independent Cooperative as well as two California companies, E-Tail Network Inc. and Biz Support Inc., and at various times used them to purchase diverted prescription drugs from his network of unlicensed prescription drug suppliers. Miller would purchase these drugs at prices well below what he would pay a legitimate manufacturer and in turn sell them to pharmacies for a profit. 

Additionally, the jury found that Miller had engaged in a money laundering conspiracy by making a deal with his co-conspirators to ship drugs to his companies in Puerto Rico in exchange for a cut of the proceeds. Miller would then make payments to his co-conspirators’ company through the companies in Puerto Rico that he controlled.  

In the end, Miller was convicted of one count each of racketeering conspiracy; conspiracy to commit mail, wire, and bank fraud; conspiracy to commit money laundering; conspiracy to engage in the unlicensed wholesale distribution of drugs; and making false statements to the FDA. He was also convicted of ten counts of mail fraud.  He is currently awaiting sentencing. 

The material in all ABA publications is copyrighted and may be reprinted by permission only. Request reprint permission here.