Bindley Western Pleads Guilty in Fraud Case

Drug wholesaler Bindley Western Industries Inc. pleaded guilty to one conspiracy charge and agreed to pay a $20-million fine to end a federal fraud investigation. The U.S. attorney’s office in Las Vegas approved the settlement, which stemmed from a grand jury investigation of sales from 1995 to 1997 at the company’s Nevada and California operations. Authorities had been investigating whether the company sold to customers who then resold discounted drugs at a profit in violation of contracts with pharmaceutical makers. Indianapolis-based Bindley Western pleaded guilty to one charge of conspiracy to commit interstate transportation of property obtained by fraud and accepted liability for the acts of two former vice presidents of its San Dimas-based unit. The company said the government agreed not to pursue additional criminal charges and concluded that the crimes occurred without the knowledge of officers in the company’s headquarters. Bindley Western said it settled to avoid the expense and uncertainty associated with a legal case. Bindley Western shares closed up 6 cents at $27.31 on the New York Stock Exchange.