February 25, 2008

CHAIRMAN OF NON-PROFIT CORPORATION SENTENCED TO 37 MONTHS IN PRISON FOR DISTRIBUTING ILLEGAL DRUGS

Used Non-Profit Entity to Purchase Illegal Drugs That Then Were Sold on the Streets of Oakland and Houston

OAKLAND – United States Attorney Joseph P. Russoniello announced that Chuka Ogele was sentenced last week to 37 months in prison followed by 3 years of supervised release for his role in the illegal distribution of large quantities of codeine and other painkillers from California to Texas. The amount of restitution will be determined on at a later court date.

On September 14, 2007, Mr. Ogele, 46, of American Canyon, California, pleaded guilty to illegal possession with the intent to distribute controlled substances, conspiracy, money laundering and travel in interstate commerce to promote and distribute the proceeds of the unlawful activity. According to court documents, Mr. Ogele , who is originally from Nigeria, concealed his illegal operation behind his non-profit organization, Internal Surplus Medical Products (ISMP). Mr. Ogele established ISMP in 1997 and received non-profit status from the IRS. While the stated mission of ISMP was to sell medicine and medical products to the Nigerian government for the treatment of AIDS patients in Nigeria, DEA determined that neither Mr. Ogele nor ISMP were authorized to import medicine or medical supplies to Nigeria. Instead, Mr. Ogele illegally sold a substantial amount of controlled substances (more than 40,000 units) on the streets of Oakland, California, and Houston, Texas, for a substantial profit - approximately $2.5 million.

According to the plea agreement, from July 2002 through September 2004, Mr. Ogele bought large quantities of Schedule III controlled substances from distributors with the intent to illegally distribute these to other persons. He purchased Schedule V controlled substances containing codeine and also admitted that during his dealing with distributors, he falsely represented himself to be a medical doctor and fraudulently utilized a doctor’s medical license. He obtained more than $1 million worth of these substances from July 2002 through September 2004 and then he directed the controlled substances to be shipped to ISMP. Mr. Ogele also hired persons to sell the drugs on the streets of Oakland, California, and hired others to transport the drugs to Houston, Texas. He used the proceeds of these illegal drug sales to purchase more drugs and to attempt to purchase a $1.3 million residence in El Cerrito, California.

On September 2, 2004, Mr. Ogele was arrested at the Houston airport after airport police found $975,381 in cash in his luggage and 395 tablets of Vicodin on his person. Mr. Ogele did not have a prescription for the Vicodin and falsely told law enforcement that he was in Houston collecting donations to ISMP to purchase prescription medication for Nigeria. On September 22, 2004, Mr. Ogele was arrested at the Houston airport a second time for possession of Vicodin and other painkillers without a prescription.

The sentence was handed down by United States District Court Judge Martin J. Jenkins.

Maureen Bessette. is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathleen Turner. The prosecution is the result of a 2-year investigation by the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigation.

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For more information on federal criminal defense law, contact the Law Offices of Joseph Shemaria of Los Angeles, California.