A Lexington psychiatrist has been found guilty of an international money laundering operation involving illegal drug imports, according to federal prosecutors. Dr. Rahim Shafa, 66, was convicted after a 14-day jury trial for his role in a sprawling scheme to purchase and implant non-FDA-approved drug implants into patients, the Justice Department reported. Shafa owned and operated Novel Psychopharmacology, where he illegally imported naltrexone and disulfiram pellet implants, used to treat alcohol and opioid dependence. These implants, sourced from Hong Kong, are not approved in the U.S., posing significant risks to patients’ health.
In the elaborate ruse, Shafa masked the drug shipments with false declarations—naltrexone pellets were listed as "plastic beads in plastic tubes," deceiving customs and putting the health of many at risk, the Justice Department detailed. For nearly a decade, the 66-year-old psychiatrist, potentially undermined the well-being of those grappling with addiction by implanting these questionable substances for profit. Sentencing is set for May 15, 2024, where Shafa faces a maximum of 20 years in prison for the money laundering and illegal importing charges, on top of potential financial penalties.
"This conduct jeopardized patient safety and undermined the very foundation of our regulatory system. Such conduct will never be tolerated," Acting U.S. Attorney Joshua S. Levy remarked after the verdict. Fernando McMillan, Special Agent in Charge at the FDA Office of Criminal Investigations' New York Field Office, stressed the essential role of the FDA in ensuring medication safety and efficacy, warning that those who jeopardize consumer health for profit will be relentlessly pursued.
Patients have testified regarding infections and complications from the implants, which was part of the evidence that led to Shafa’s conviction. Special Agent in Charge Roberto Coviello from the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) stated, “This defendant orchestrated a scheme that jeopardized the health of vulnerable patients seeking help with their addiction,” Shafa’s money laundering charge alone may result in up to 20 years in prison, three years of supervised release, and a fine of $250,000.
The collaborative efforts of multiple agencies, including the Massachusetts State Police, Milford Police Department, and Lexington Police Department significantly supported the investigation. Assistant U.S. Attorneys John T. Mulcahy, Howard Locker, and Kaitlin J. Brown are prosecuting the case.
