Wal-Mart's "Frightening" Narcotics Deal
Illegal Aliens Deliver Fear & Loathing To Wal-Mart Pharmacies
By Al Norman
One of the world's largest drug store chains is employing a very unusual---and provocative---method for sourcing its drugs.
This week mighty Wal-Mart found itself at the center of a street-level drug deal that raised larger questions about where and how the retailer gets its cheap drugs.
In June of 2008, I wrote in this space about Wal-Mart's global sourcing empire for prescription drugs, quoting one pharmaceutical industry analyst as saying, Wal-Mart drugs "come from all over the world. They're U.S. manufacturers, Israeli and Indian manufacturers. They have a choice of where to buy these drugs."
But this week, Wal-Mart's choice of drug vendors made some small town news. The corporation was tight-lipped about a narcotics source that raised lingering questions about where the giant retailer is really getting its cheap drugs, and what product safety and procurement protections are in place at the retailer's pharmacies. In fact, the whole incident was described by the ABC news affiliate that broke the story as "strange."
Strange, but also unsettling. ABC 4 News in Cedar City, Utah---a town of roughly 28,000 people---reported that a routine traffic stop of three men led to a bizarre tale of prescription narcotics, illegal couriers, a Las Vegas drug supplier, and the world's largest retailer.
Diego Jimenez, Maricio Jimenez, and Kyle Gutierrez are being held in a jail in Iron County while local authorities sift through their odd story. Police pulled over their car as it was traveling north on Route 15 just south of 100 miles per hour. The men claim they were hired to deliver prescription drugs to at least three Wal-Mart stores, including the superstore on South Providence Drive in Cedar City, Utah, which has an in-store pharmacy. The three men reportedly had already been to the Wal-Mart supercenter in St. George, Utah, which is south of Cedar City on Route 15, and the Wal-Mart superstore on Route 15 further south in Mesquite, Nevada, on the border with Arizona.
While searching the car, police found marijuana paraphernalia, two boxes of prescription narcotics, and a retail invoice for $30,000. Two of the three men in the car admitted to being illegal aliens. The men claimed they had been retained by a company called Nevada Courier, given $150 and a tank of gas to "drive these medications down here and drop them off."
The three suspects arrested are all reportedly from Las Vegas. The police verified their story by checking with the retailer. "I called Wal-Mart," one police spokesman told ABC news, "and they said yeah they were expecting a delivery and the driver was late."
Wal-Mart would not shed more light on the case when contacted by ABC, but sent reporters an email which read, "This situation is unacceptable to Wal-Mart. We maintain strict standards for courier companies that transport products for us. As this was a situation involving a contractor, your questions would need to be addressed by the courier company or the police."
But Iron County Sheriffs were talking, and they told ABC, "You don't know if they opened the box, no tamper seals, nothing...so you never know what you're going to get I guess." The ABC piece added: "Sheriffs say what's frightening here is the safety of Wal-Mart's pharmacy customers."
Wal-Mart has been in the pharmacy business since 1978, and has over 4,264 pharmacy locations in the U.S. alone. The company boasts of its high-tech software system that gives its pharmacists access to a "huge database" across the country. Yet a company with this sophistication is obtaining narcotics from a carload of illegal "couriers" barreling up Route 15 at 96 miles per hour.
Wal-Mart is right: this situation is "unacceptable." But the issue here is not only Wal-Mart's credibility. The issue is the safety of Wal-Mart customers. Where are these drugs really coming from? Who are these couriers? Why are narcotics being driven to stores in a manner reminiscent of Fear & Loathing In Las Vegas?
Regulatory officials in Utah and Nevada need to track the supply chain in this case, and report back on reforms needed to deal with Wal-Mart's unacceptable narcotics deals. Consumers put all their confidence in these national chain stores---but if this "strange" tale from Cedar City, Utah was enough to frighten the cops, it should scare the rest of us as well.
At Wal-Mart, you never know what you're going to get, I guess.
Al Norman is the founder of Sprawl-Busters, and has been helping local activists fight big box stores for nearly 16 years. His website is http://www.sprawl-busters.com.
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As these were isolated locations, quite distant from distribution centers, Walmart used contract companies where it just goes to the cheapest vendor and only minimal overseeing. Probably the courier company was cutting corners too. Walmart is still responsible ultimatly for the mis-handling of these highly regulated products. Perhaps too the Federal government should only allow approved companies or procedures of distribution of all prescription drugs.
Then you're looking at another rise of Halliburton and we definitely don't want that.
There need to be stringent regulations in place for any courier transporting prescriptions, etc, but also regulations for the big stores like walmart, cvs, etc where they must account for the chain at every stop. This must be sent/filed with the fda or hhs for every shipment.
St. George Utah is on a major Interstate ... isolated location .... hardly!!! The same for Mesquite, Az. Sloppy inventory and sloppy distribution led to a questionable delivery that ultimately cost more than if it had been done correctly and potentially risked the lives of the consumers. It's all about profit and nothing more.
What were these guys thinking, driving at 100 mph? First rule for speeding is, make sure your vehicle is clean and your papers are in order...
Hey, Wal-Mart treats its employees like street thugs shaking down a corner mom and pop store. Why should anyone be surprised that they would supply drugs to their customers like street thugs would?
I worked there for 6 years and was treated great. My health insurance was better than my wife's and she was a nurse. I had profit sharing that I did not have to contribute to and an employee stock purchase plan that allowed me to buy stock at a 15% discount. I made a ton of money. Of course, i didnt make it my permanent job. I was in college and got a real job after graduation and rolled that money into a 401k plan that is worth a heck of a lot today.
There are things in your commentary that raise questions but, for some reason, I will conjecture that we should just agree to disagree. From your particular perspective, I have no doubt that you are correct.
No wonder so many pharmaceuticals are being ripped off. Drugs replaced with substitutes. This is what happens when regulators are fired from US govt.
Big Pharm does not want it known. Guess it would give criminals ideas.
I can't believe that a gigantic corporation solely devoted to profit and expansion would cut corners and skirt the law. Surely we can trust corporations to always do the right thing, can't we?
LOL
Yes, that's why the gop deregulated all of them.
"This situation is unacceptable to Wal-Mart. We maintain strict standards for courier companies that transport products for us. As this was a situation involving a contractor, your questions would need to be addressed by the courier company or the police."
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You realize that this is the classic answer, do you? It's been used before regarding working permits or rather the lack thereof. The risk is outsourced, the contractor is expendable. It is a laundry device. It would be interesting to know who is/was in exececutiv management and on the board where they are coming from an where they went.
Had the drugs not been intercepted, they would have been taken in by Wal-Mart (no questions ask) and dispensed with no public knowledge.
Just confirms my decision to never shop there.
So where do you shop? Target? Kmart? You think they are any different? Don't forget , their actions are driven by the little dude that wants the gallon jar of pickles for $2.98 not $3.15
It is incredible that there is so much anxiety over Americans buying their prescription drugs in Canada; and yet Walmart, with it's incredibly non-transparent procurement practices, seems to get a complete pass from regulators. It doesn't take much imagination to guess how Walmart manages to keep drug prices low and profits high. You just have to look at the sweat-shops that fill their clothing racks to get some idea of the conditions under which these "pharmaceuticals" are manufactured and distributed.
Wal-mart actually needs to be brought down. Check out youtube, The High Cost of Low Prices.
This story is absolutely scary. Who knows the source of these drugs? Why on earth would legitimate businesses carry on this way. Drugs should be delivered on a company truck (we see their tractor-trailers all over the roads) or a bonded messenger service, not some bunch of skeezy illegals. What the hell is Walmart doing here?
Always ask your doctor what alternative treatments are available before you accept a prescription from him.
"Fast & Cheap will ruin your life".....
Outrageous, even by Walmart standards.
I find it hard to believe that Walmart would resort to illegal sources as a matter of course. It's far more likely that some manager or pharmacist found a clever way to skim of the top using Mexican drugs.
I don't find anything hard to believe about Wallmart. Any practice that saves them a nikel, puts a competitor out of business and they think they can get away with is OK.
After being laid off and with it my health insurance, my doctor suggested I look at Walmart and it's low prices. I told him I would NOT purchase from them for I did not know where their drugs were made, quality of production, safety or if they were labled right. Looks like my fears about the Walmart/China?India connection were right. Do not puchase drugs from Walmart!!!
Correction
They undercut pricing, because they cut corners. If it was truly that easy to make a profit, with all tranactions being done ethically, all other retailers would be doing the same thing and making the same kind of money.
Either they captured lightning in a bottle in terms of a business model, or they are crooks.
That's the same logic I hear from folks that say "Don't shop at Wal-Mart, shop at Target" like they believe the stuff doesnt come from the same source. Next you'll be saying "Let's all not buy gas from Exxon and show em how we feel" not realizing that you aren't hurting Exxon at all. Only the little person that owns the Exxon station.
I've got news for you, the other stores get there drugs from the same place.
It doesn't matter whether corporate Walmart would "as a matter of course" resort to illegal drug sources. That their pharmacists and store managers have not been trained and monitored better is of huge concern. If several stores were involved in this imbroglio than obviously the corporation has not impressed upon it's upper level staff the importance of operating honestly and above board. Corporate Walmart is very clear that they value a profit over any and everything else. Do you think that that philosophy may have found it's way down to store managers and pharmacists? Caveat emptor!
If you read the article more thoroughly, you will see that at least three Walmart locations were involved. That doesn't sound like an isolated incident..
BOY, ARE YOU NAIVE!
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