United States Attorney's Office District of Connecticut
Press Release

Operation Phony Pharm: PENNSYLVANIA MAN INVOLVED IN STEROID DISTRIBUTION CONSPIRACY IS SENTENCED

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that WALTER T. COREY, 38, of Cherleroi, Pennsylvania, was sentenced today by United States District Judge Mark R. Kravitz in New Haven to two years of probation, the first six months of which COREY must spend in home confinement, for his participation in a conspiracy to distribute anabolic steroids over the Internet.  Judge Kravitz also ordered COREY to perform 100 hours of community service, and to pay a fine in the amount of $1000.  COREY pleaded guilty to the offense on February 26, 2008.

According to documents filed with the Court and statements made in court, in approximately November 2006, COREY was recruited by co-conspirator Matthew Peltz of Phoenix, Arizona, to set up a post office box in West Mifflin, Pennsylvania, to receive payments from customers who purchased steroids, that Peltz and others had manufactured, through the Internet web site www.anabolic-superstore.com.  From November 2006 through August 2007, moneys were sent to the post office box, which COREY then forwarded to Peltz.

This matter stems from Operation Phony Pharm, an investigation headed by the FBI’s Healthcare Fraud Unit in the District of Connecticut.  Using several sophisticated investigative techniques, this initiative has targeted web sites and individuals who are selling Schedule II and III pharmaceuticals over the Internet without a doctor’s consultation or a legitimate legal written prescription.  The investigation also sought to identify and close down underground laboratories in the U.S. that are making these drugs from raw materials obtained from outside the U.S.

On September 27, 2007, Peltz pleaded guilty to one count of distribution of anabolic steroids.  He awaits sentencing.

This matter is being investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Food and Drug Administration’s Office of Criminal Investigations, and the Drug Enforcement Administration.  The case is being prosecuted by Assistant United States Attorney Edward Chang.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov