Report: Mobile pharmacy linked to steroid ring

Thursday, March 01, 2007
*Staff, wire reports*

Two owners of Mobile-based Applied Pharmacy Services have been indicted
by an Albany, N.Y., grand jury in connection with an illicit steroid
distribution network with high-profile customers, according to media
reports.

The Albany (N.Y.) Times-Union reported Wednesday that customers of the
Mobile operation allegedly include Los Angeles Angels outfielder Gary
Matthews Jr., former heavyweight champion Evander Holyfield, a native of
Atmore, and former American League baseball star Jose Canseco. The
newspaper cited unidentified sources for its report, explaining that the
indictment was under seal.

Albany County District Attorney P. David Soares, who heads the
investigation, was in Orlando on Tuesday for a raid that resulted in the
arrests of pharmacy owners there. Soares has refused to identify any
alleged steroid recipients, saying prosecutors were focused on producers
and distributors.

Arthur Madden, a Mobile lawyer who has represented Applied Pharmacy for
six months, said Wednesday he had not seen any warrants or documents
concerning an investigation into the Mobile-based business.

"The whole thing is a mystery," Madden said.

Madden said that Applied Pharmacy is licensed and regulated by the
federal Drug Enforcement Administration. "You have to have a
prescription to place an order," Madden said.

Madden said he had not been able to reach anyone in the Albany County
District Attorney's office to obtain more information. A spokeswoman for
the District Attorney's office did not respond to a Press-Register
reporter's telephone calls Wednesday.

Madden said he represents the pharmacy itself not the owners
individually. According to business records, Jason Kelley and Sam Kelley
own Applied Pharmacy, located on International Drive near Colonial Mall
Bel Air.

On Wednesday, a reporter who went to the Applied Pharmacy office spoke
to an employee who said the Kelleys were unavailable. Inside the office
there were numerous framed pharmacy certifications, as well as a door
bearing a "registered pharmacist" nameplate.

Mobile County District Attorney John Tyson Jr. and Mobile Police Chief
Phillip Garrett said they were unaware of the investigation. Special
Agent Tim White, a spokesman for the FBI in Mobile, said his agency was
not involved in the investigation.

Tom Wade, the DEA's resident agent in charge in Mobile, said he had read
the Times Union article, but did not know of the investigation otherwise.

Wade said that if Albany officials called him and asked for his help in
arresting anyone, he would advise them to contact the Mobile police
since the case would involve state indictments.

At the Los Angeles Angels' spring training camp in Mesa, Ariz., Matthews
told reporters that he wasn't "in a position to answer any specific
questions."

"I do expect it to resolve itself here in the near future," Matthews
said. "Until we get more information, I just can't comment on it."

Canseco's attorney, Robert Saunooke, told The Associated Press he would
be surprised if the former slugger had been a client.

"I would find it highly unlikely," Saunooke said. "All the steroids that
he got were prescribed to him or were from people in the gym. There's
never been anything he's gotten online."

Saunooke added that neither he nor Canseco had been contacted by any
investigators in the case.

"Just Senator Mitchell," he said, referring to baseball's ongoing
investigation into steroids.

A message left with Holyfield was not immediately returned.

The Times Union said investigators found evidence that testosterone and
other performance-enhancing drugs may have been fraudulently prescribed
over the Internet to current and former Major League Baseball and NFL
players, college athletes, high school coaches, a former Mr. Olympia
champion and another top contender in the bodybuilding competition.

The newspaper said that an Orlando business named Signature Pharmacy was
linked to the probe, and that its patrons included former Arizona
Diamondbacks pitcher Jason Grimsley and a team doctor for the Pittsburgh
Steelers.

Grimsley's agent, Joe Bick, declined comment.

The newspaper said a New York investigator flew to Pittsburgh last month
to interview Dr. Richard A. Rydze about why he allegedly used a personal
credit card to purchase about $150,000 in testosterone and human growth
hormone in 2006.

Rydze told the investigator the drugs were for his private patients, the
newspaper said, attributing the information to an unidentified person
briefed on the interview.

There are no allegations that Rydze violated any laws.

Steelers spokesman Dave Lockett said that Rydze works for the club
mostly on game days. He is listed among the seven doctors under the
"medical staff" designation on the official team employment roster.

"We can't comment any further because we are still gathering
information," Lockett said.

A message for Rydze wasn't immediately returned, according to The
Associated Press.

Meanwhile, the University of Pittsburgh Medical Center said it was
investigating the purchase made by Rydze, who works there.

"We have initiated an internal review and at this time we have no
further factual information or comment," said Susan Manko, a UPMC
spokeswoman.

Soares while in Florida Tuesday was present for raids conducted by
federal and state agents at two Signature Pharmacy stores. Four company
officials, including a married couple who are both pharmacists, were
arrested.

Prosecutors are expected to ask during a hearing today that the four be
extradited to New York. According to the arrest warrants, all four were
indicted on charges of enterprise corruption, criminal sale of a
controlled substance, criminal diversion of prescription medications and
insurance fraud.

Soares refused to answer most questions about the case. He said his
investigation began after an Albany doctor was arrested for allegedly
trafficking in narcotics online.

"I cannot elaborate anymore and I cannot provide you with any more
details without compromising an investigation which even at this point
is at a very sensitive stage," he said.

Arrested on Tuesday were Stan and Naomi Loomis, who own the Signature
Pharmacy in downtown Orlando, Stan's brother Mike Loomis and Kirk
Calvert, Signature's marketing director. Soares' office identified
Signature as a "producer" of the illegally distributed drugs.

Also arrested as a result of the New York investigation were three
people Soares' office described as "distributors" from a Sugar Land,
Texas, company called Cellular Nucleonic Advantage.

Before the investigation is complete, Soares' office said, up to 24
people could face charges, including six doctors and three pharmacists.

(Press-Register Staff Reporter Susan Daker and The Associated Press
contributed to this report.)

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