Operator of Illegal Pharmacy Pleads Guilty

A man who illegally sold thousands of doses of controlled substances and prescription drugs pled guilty today in federal court in Cedar Rapids.

Jon Stidham, age 57, from McClelland, Iowa, was convicted of conspiracy to deliver, distribute or dispense methyltestosterone, a Schedule III controlled substance, by means of the Internet without a valid prescription and without complying with federal and Iowa licensing requirements, and one count of conspiracy to introduce misbranded drugs into interstate commerce with intent to defraud or mislead and to commit mail fraud.

In a plea agreement, Stidham admitted that he operated a business called Kennel Supply, LLC.  Kennel Supply supplied a variety of items used for the operation of kennels and the care of farm animals at the brick-and-mortar location.  On the Internet, Kennel Supply sold controlled substances and non-controlled prescription drugs that require prescriptions to lawfully dispense to the ultimate user.  From 2015 through October 12, 2018, Stidham distributed and sold over 300,000 doses of methyltestosterone, a controlled substance, without valid prescriptions.  He illegally profited by over $324,000.  During that same time-period, Stidham illegally distributed over 50 types of prescription drugs without a valid prescription or authorization, and illegally profited over $200,000.  

Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared.  Stidham remains free on bond pending sentencing.  Stidham faces a possible maximum sentence of up to 15 years’ imprisonment, a $750,000 fine, $200 in special assessments, and up to life on supervised release following imprisonment.  The plea agreement also includes an agreement that Stidham will forfeit illegal profits of $527,510 to the United States.

The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the Drug Enforcement Administration, U.S. Food & Drug Administration Office of Criminal Investigation, and Iowa Division of Criminal Investigation. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 21-CR-01036.

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