Chairman's Blog

08-16-2014

FedEx pleads not guilty to online pharmacy charges


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As reported by CNBC:

"The shipping company is accused of delivering controlled substances and prescription drugs from illegal Internet pharmacies despite multiple warnings from government authorities, according to a 15-count indictment filed earlier this month. Instead of closing the pharmacies' accounts, FedEx is accused of changing the shipping account classification." says the article.

For insiders, the possibility of government doesn't surprise anymore, since UPS got under similar scrutiny last year. The general public probably is surprised, and needs to learn more about the underlying legislation and regulations.

However unlike FedEx going for a fight, UPS preferred a settlement, and UPS' CFO Kurt Kuehn explains why their preferred solution was a settlement: 

"Our responsibility isn't to inspect packages, but if there is a suspicion that comes up that there may be an illegal activity happening, we need to communicate that and be somewhat diligent in making sure that our network is being used for legal purposes," Kuehn said.

Based on recent enforcement history and level of sanctions, I tend to agree with him, that settlement was the least painful way to go.



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Chairman Mr. Thein BlogEgide Thein

I'm Founder and Chairman of Truth Technologies, Inc., a Vienna, VA based company providing anti money laundering and anti fraud solutions to the financial industry (www.truthtechnologies.com).

I was General Representative for the Americas for Banque et Caisse d'Epargne de l'Etat, Luxembourg (1995-2005). I was Consul General of Luxembourg in New York and Director of the Luxembourg Board of Economic Development (1989-1995). I served as spokesman to the U.N. for the European Economic Communities at the 1991 reconvened General Assembly. I was Chief of Staff of Crown Prince Henri of Luxembourg, now Grand the Duke (1975-1989) and served with the Luxembourg Armed Forces and with Allied Mobile Force of NATO (1969-1975).

I graduated from Ecole Royale Militaire, Brussels, Belgium (1964-1969) and from the U.S. Defense Information School (Public Affairs Officer 1983).

I'm trustee emeritus of Sacred Heart University, Fairfield, CT. I'm Founder of the Luxembourg-American Chamber of Commerce and of the Luxembourg Business Journal.

I founded David's Farms, a charity supporting the autistic and developmentally disabled.

I speak fluently Luxembourgish, French, German and English.