Pharmacist Convicted at Trial of Illegally Distributing Oxycodone to People Without Valid Need for the Highly Addictive Painkiller – Doctor who was Madison Borough councilman previously pleaded guilty to conspiring with him

Srinivasa Raju, 44, of Clifton, N.J., who operated as a pharmacist at Bottle Hill Pharmacy in Madison, was found guilty yesterday afternoon by a Morris County jury of third-degree counts of conspiracy and distribution of a controlled dangerous substance, namely oxycodone  The verdict followed a three-week trial before Superior Court Judge Salem Vincent Ahto in Morristown.

Deputy Attorneys General Brandy Malfitano and Jamie Picard tried the case for the New Jersey Division of Criminal Justice Gangs & Organized Crime Bureau.  Raju was indicted in 2013 in an investigation by the U.S. Drug Enforcement Administration (DEA) and the New Jersey Division of Criminal Justice.  Third-degree crimes carry a sentence of three to five years in state prison and a fine of up to $15,000.  Sentencing for Raju is scheduled for July 7.

The doctor, Vincent A. Esposito, 58, of Madison, a former borough councilman who had his medical office at 322 Main Street in Madison, pleaded guilty on Dec. 17, 2013 to second-degree conspiracy to distribute oxycodone.  He surrendered his medical license and is awaiting sentencing. 

“This pharmacist willfully participated in the illegal diversion of oxycodone, which is a primary driver in the epidemic of opiate abuse plaguing New Jersey and the U.S.,” said Acting Attorney General Lougy.  “It’s completely unconscionable that licensed professionals like this pharmacist and the doctor who conspired with him would illegally peddle these addictive pills for profit, without regard to their deadly impact.”

“Working with the DEA, we’re redoubling our efforts to prosecute the pharmacists, doctors and drug dealers who run the black market for these dangerously addictive pills,” said Director Elie Honig of the Division of Criminal Justice.  “This verdict sends a clear warning to other health care professionals who would consider joining this dark trade.”

Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division said, “These are educated professionals who violated their oaths to their patients, despite all the public awareness campaigns in New Jersey identifying the dangers of diverted pain medicine and the harm and pain they cause in our communities. These defendants are a prime example of the problems fueling our drug threat in the region, and we are relieved they are out of business.”

The state presented testimony and evidence at trial that Raju provided oxycodone to certain cash-paying customers without any prescription and then had Esposito write prescriptions to cover his activity at the end of the month.  Raju provided oxycodone to a cooperating source for the DEA‎ on three occasions without prescriptions, knowing the cooperating source was a drug dealer.  Raju would create fake labels for the pill bottle to cover the fact that he was dispensing without a prescription.  The labels showed an Esposito prescription because Raju knew Esposito would write prescriptions to cover his activity. 

In addition, Raju distributed oxycodone to an undercover DEA agent on three occasions.  The agent provided a blank prescription on one occasion, and she provided fake prescriptions on two other occasions.  Raju believed the undercover agent was assisting the cooperating source who was a drug dealer.  When the agent provided Raju with the blank prescriptions, he called the drug dealer to ask him how much oxycodone he wanted. He then gave that amount to the undercover DEA agent.

The pills that were illegally distributed by Esposito and Raju were usually 30 milligram pills of oxycodone.  Thirty milligrams is a very high dose of the potent narcotic painkiller, which is usually prescribed in doses of 5 or 10 milligrams.  Esposito typically charged $90 to write an oxycodone prescription for 120 pills of 30 milligrams.

Deputy Attorneys General Malfitano and Picard were assisted at trial by Analyst Rita Gillis and Detective Maria Duran of the New Jersey Division of Criminal Justice Gangs & Organized Crime Bureau.  Detective Kevin Weinkauff of the Gangs & Organized Crime Bureau assisted the DEA in their investigation.  Former Deputy Attorney General Betty Rodriguez presented the case to the state grand jury for the Division of Criminal Justice Gangs & Organized Crime Bureau. 

Acting Attorney General Lougy commended the U.S. Drug Enforcement Administration for their investigation.  He also thanked the Madison Borough Police Department and the Morris County Prosecutor’s Office for their assistance in the investigation.

Esposito was arrested on Feb. 16, 2012, when DEA special agents and detectives of the Division of Criminal Justice executed a search warrant at his office.  Raju was arrested on March 6, 2012.

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