
NJ doctor made $130,000 off illegal cancer drug scheme
ELMWOOD PARK — A pain management doctor has admitted to his part in a plan to illegally purchase and sell cancer drugs to net himself over $130,000.
Jon Paul Dadaian, 53, pleaded guilty Monday to unlawfully selling prescription cancer medication.
Federal prosecutors said Dadaian, a board-certified anesthesiologist, had the prescription drugs delivered to his practice in Elmwood Park.
The brands of medications Dadaian purchased included Herceptin and Rituxan, according to a criminal complaint. Both are FDA-approved and intended for cancer treatment.
Herceptin and Rituxan are also cold-chain biologic infusion medications. Manufacturers are selective and "tightly control" which distributors can receive these drugs, prosecutors explained. Improper storage would cause them to quickly degrade and decrease in effectiveness without visibly changing appearance.
In 2012, the doctor from New York met two people who ran a pair of businesses that were wholesale distributors of prescription drugs. Federal prosecutors did not name the two other people involved.
Authorities said the wholesale distributors were not authorized to obtain and sell the two medications. Instead, they used Dadaian's medical license and bank account to purchase the cancer drugs.
Using this illegal workaround also allowed the wholesale distributors to get the drugs at a discount.
After the pharmaceuticals were delivered to Dadaian's Elmwood Park office, he resold them to the distributors. Dadaian made $130,500 over six years, prosecutors said.
As part of his plea agreement, Dadaian must pay back full restitution. He could also face up to three years in prison and a $10,000 fine. His sentencing is set for September.
Rick Rickman is a reporter for New Jersey 101.5. You can reach him at richard.rickman@townsquaremedia.com
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