There would also be $21.8 million in tax refunds the shareholders had
coming. Insurers for NECC and Ameridose contributed another $35
million. The healthcare providers and their insurers provided the bal-
ance.
A criminal investigation begins
At the end of 2012, federal prosecutors convened a grand jury to look
into the NECC incident. The body began issuing subpoenas to
employees. FBI agents combed through documents and servers at the
company, harvesting 2.2 million e-mails and marking significant ones
"hot."
On Sept. 4, 2014, Mr. Chin tried to board a plane for Hong Kong with
his family. He said he was going to a cousin's wedding. FBI agents
arrested and detained him. Three months later, the grand jury investi-
gation complete, attorneys for the U.S. Department of Justice,
Consumer Protection Division, unveiled a 131-count criminal indict-
ment. It charged 14 former NECC employees with criminal offenses. It
alleged that from 2006 to 2012, NECC knowingly sent out drugs that
were mislabeled, unsanitary or contaminated — forming the basis for
racketeering charges against 6 individuals.
Messrs. Cadden and Chin were charged with 25 counts of second-
degree murder. The trial date had been set for September, but a feder-
al judge has granted a delay until Jan. 5, 2017 (the remaining defen-
dants still face a September trial date).
The indictment asks for the forfeiture of everything that 8 of the
employees made between 2006 and 2012. The attorneys say the gov-
ernment is entitled to 2 of the houses Barry and Lisa own, as well as
Mr. Cadden's red BMW and sportsfishing boat.
According to several published reports, Mr. Cadden's lawyer, Bruce
Singal, complained that prosecutors are trying to turn a "tragic acci-
1 6 4 • O U T PA T I E N T S U R G E R Y M A G A Z I N E • J U L Y 2 0 1 6
