In February 2005, PowerMedica was raided by agents of the U.S. Food and Drug Administration for its illegal activities. Undercover investigators were able to buy steroids and human growth hormone from PowerMedica at 600 W. Hillsboro Blvd., Deerfield without valid prescriptions. The drug company operates a large scale distribution and sale of steroids and human growth hormones to thousands of customers with the help of doctors who signed prescriptions without any consultation with the patients.

The chief executive of PowerMedica, Daniel Dailey told the investigators that time that all of their customers do have valid prescriptions but in May he pleaded guilty to the charges. On Friday, Dailey was sentenced 46 months in prison for conspiracy to unlawfully distribute human growth hormone and conspiracy to unlawfully distribute steroids.

Court records showed that the company sold steroids and human growth hormone to thousands of customers including several active police officers and firefighters across the country. These clients acquired prescriptions from doctors who are also connected with the company but investigations revealed that there were no physical exams or review of patients medical histories conducted on these clients. Thus making the prescriptions illegal. It was also noted that most of the purchases were for non-legitimate medical purposes according to the report of the Sun Sentinel. Most of them are bodybuilders and people who want to slow down the aging process, the report said.

Ellen Cohen, the Assistant U.S. Attorney said that since the customers purchased these steroids and HGH without medical supervision, they are prone to health risks. She said that most of the human growth hormones came from China and its potency and the ingredients used were not tested for safety and effectiveness. She noted that the business of Dailey was profitable. “There was money coming in, enormous amounts of money,” she said.

Dailey is also cooperating with the authorities in other investigations related to steroid distribution. Prosecutors want him to testify in the Orlando-based pharmacy that was also investigated for selling steroids without valid prescriptions. There were already 15 people convicted in the steroid distribution and 5 are still facing criminal charges. The Signature Pharmacy case is being heard in Albany NY. Dailey is also expected to take the witness stand against his father who is also involved in running PowerMedica.

Another defendant in the case, Dr. Manuel Sanguily, 77, of Tarrytown, N.Y. was also sentenced to spend 30 months in prison. The former Olympic swimmer, who represented Cuba for 2 Olympic Games admitted to charges. He is one of the doctors who worked with the drug company and signed more than 2,000 prescription orders for PowerMedica without meeting a single patient according to the report.

U.S. District Judge James I. Cohn said that the participation of Dr. Sanguily warrants a prison sentence. “The court cannot ignore the danger that resulted from writing prescriptions for over 2,000 individuals the doctor never met,” he said. The Sun Sentinel also reported that both defendants will not have to report to prison until March 1.

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