Pharmacist from Cedarhurst accused of illegally distributing oxycodone

A Cedarhurst man, who operates a pharmacy in Far Rockaway, Queens, was charged Thursday in federal court in Brooklyn with illegal distribution of the narcotic oxycodone, and evading taxes on over a $1 million he made, mostly by illegally dealing the drug, officials said.

Daniel Russo, 40, who owns Russo’s Pharmacy, pleaded not guilty at an arraignment in federal court in Brooklyn on charges of conspiracy, distribution and possession of oxycodone, distribution of oxycodone by a pharmacist without a legitimate prescription, and filing false tax returns, officials said.

In the drug distribution scheme, which ran between March of 2011 and June of 2014, Russo worked with medical professionals and the employees of a physician to fill fraudulent oxycodone prescriptions, and dispense thousands of oxycodone pills in return for cash, officials said.

 As a result of the investigation into Russo’s illegally filling prescriptions during that time, “[m]ore than a dozen physicians … have since been convicted of crimes related to the distribution of oxycodone,” officials said.

In the tax evasion scheme, Russo is charged with failing to report the proceeds of the illegal oxycodone distribution by filing false corporate income tax returns for the pharmacy from 2013 to 2016, and false personal income tax returns from 2012 to 2016.

Russo was released on $1.5 million bond and faces up to 20 years in prison if convicted.

His attorney could not be immediately reached.

Eastern District U.S. Attorney Richard Donoghue said in a statement, “We can count the hundreds of thousands of dollars Russo allegedly pocketed from the charged scheme, but the resulting human misery in our communities is incalculable.”

Ray Donovan, the head of the Drug Enforcement Administration’s New York office, said: “It is a misconception that pharmacists can hide their role in illegal drug distribution by blindly following what doctors have prescribed for their patients. By law, pharmacists must practice due diligence. … If diversion of prescriptions is suspected, and merely cast aside to make a quick dollar, the pharmacist is no better than a dealer on the street.”

The investigation was led the DEA’s Long Island Tactical Diversion Squad which includes federal agents and local police, officials said.

By Robert E. Kessler

Robert.Kessler@newsday.com

Bob Kessler covers federal law, including law enforcement agencies such as the FBI, DEA, IRS and ATF, as well as the federal courts.