Provo man pleads guilty in Internet pharmacy scheme

SALT LAKE CITY — A Provo man pleaded guilty in federal court Monday to his part in an Internet pharmacy scheme that led to the selling of as many as 8 million Phentermine pills to people without legitimate prescriptions.

Gregory J. Crosby, 53, pleaded guilty to one count of conspiracy to distribute Phentermine and one count of conspiracy to commit international money laundering before U.S. District Judge Dale Kimball. Crosby was one of 18 indicted in the scheme and was named in seven of the nine counts set forth in the indictment.

The indictment said the group also attempted to distribute other controlled substances, including Ritalin, Valium and Xanax, in the period between October 2003 and July 2007 when they were importing the drugs from Mexico. The plea agreement states that Crosby and others sold around 8 million Phentermine pills over the Internet to people without valid prescriptions, without having the "requisite authority" from the Drug Enforcement Administration to distribute prescription pills.

Crosby admitted in the plea agreement that the defendants paid $1.9 million for the Phentermine to a supplier in Chihuahua, Mexico, for the product. Crosby said they didn't wire the money directly to the Mexico-based supplier but through the personal bank account of another defendant to further the scheme.

As a part of the plea agreement, Crosby will forfeit vehicles, including a 2005 Ford Mustang GT and a 2006 Mercedes-Benz, cash in substitution for properties located in El Mirage, Ariz., and Provo and $200,000 in equity in a Provo home.

Crosby faces a maximum sentence of 20 years in prison for each count and a potential fine of $1 million for the conspiracy count and $250,000 for the money laundering count. A sentencing date has yet to be scheduled in the case.

The case of Edgar Flores-Cuevas, 36, whose personal account was the one used to receive the funds wired by Crosby, was resolved in January. Flores-Cuevas was sentenced to the 20 months of prison he'd served and placed on supervised release for conspiracy to commit money laundering.

e-mail: emorgan@desnews.com