Brothers Who Ripped Off Roche for Millions Beg for Mercy
Among other crimes, the pair — Carlos and Jorge de Céspedes — were convicted of syphoning off millions of dollars from Pharmed into their own pockets. About $300 million in Pharmed’s revenue came from a massive contract with Roche, which yanked its business with the company when the allegations came to light.
The brothers “manipulated” the Roche contract for their own benefit, prosecutors say, and once violations were discovered Roche walked away and 300 Pharmed employees lost their jobs. The brothers ultimately skimmed about $30 million from their Roche contract. Prosecutors say:
The De Cespedes brothers lined their pockets at the expense of Pharmed’s minority shareholders, Roche, the IRS, and the American people.
Roche has never previously commented on why it ended its business with Pharmed.
Ironically, the brothers had also signed a letter decrying corruption in Miami. The letter began, “We have had it!” The brothers face up to 25 years in prison.
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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