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Specialty Pharmacy Employee Fired after Revelation of Illegal Profit Scheme

Curative Health Services, a specialty infusion company based in Nashua, NH, announced
on September 21, 2005 the firing of James H. Williams, vice president of Hemophilia
Community Services. The action was taken after the company learned that Mr. Williams
had recently pleaded guilty in federal court to three counts of tax fraud. He was charged
with neglecting to report income on several tax returns. The unreported income was
attained through illegal practices. Mr. Williams purchased clotting factor products from
hemophilia patients and resold them to a wholesale pharmacy in Florida.

Mr. Williams admitted to participation in the scheme, which occurred while he had been
an employee of Apex Therapeutic Care, Inc. Curative had no knowledge of these
activities when they acquired Apex in February of 2002. The company learned of Mr.
Williams’ guilty plea and illegal activities upon reading an Internal Revenue Service
press release dated September 7, 2005. “We are extremely disappointed to learn that Jim
Williams was involved in this criminal conduct which would not be tolerated in this
company. We believe his conduct betrayed the trust of the entire hemophilia
community,” said Paul McConnell, President and CEO of Curative. Federal authorities
are seeking to prosecute multiple participants in the factor reselling racket. The company
has verified with federal and state law enforcement that it is not being implicated in these

Source: Market Wire, September 21, 2005


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