SignalHub-Dozens arrested in bust targeting 'largest known pharmacy burglary ring' in DEA history

Dozens of members of a Texas-based drug trafficking organization have SignalHubbeen arrested in a sweeping operation that targeted the "largest known pharmacy burglary ring" in the U.S. Drug Enforcement Administration's history, federal authorities said Thursday.

Following a yearslong investigation, the U.S. Attorney’s Office for the Eastern District of Arkansas and DEA representatives announced Thursday that an additional 24 people were arrested in Houston in July as part of the second phase of "Operation #Richoffmeds." The defendants were charged with conspiracy to possess controlled substances with intent to distribute, according to U.S. Attorney Jonathan D. Ross.

A majority of the additional 24 defendants appeared in federal court in Little Rock on Thursday, Ross said at a news conference. The remaining defendants will appear in court in September.

Last December, federal authorities announced phase one of Operation #Richoffmeds after investigating more than 20 pharmacy burglaries and thefts of pharmaceutical narcotics in Arkansas. At the time, 18 people had been arrested in November 2023 and were accused of stealing more than $1.5 million worth of narcotics.

Further investigation revealed that the 42 defendants had worked together to burglarize over 200 pharmacies across 31 states, including more than 11 pharmacies in the Eastern District of Arkansas, Ross said. The stolen drugs — which included oxycodone, hydrocodone, and other prescription drugs — were transported to Houston to be sold illegally.

"This Houston-based network targeted rural pharmacies, stealing powerful drugs like Oxycodone, Xanax, and Adderall to flood the streets," DEA Administrator Anne Milgram said in a statement. "These criminals even crawled on floors to dodge security, but they couldn't escape us. We dismantled their entire operation-street dealers, burglars, and all. In the fight against the opioid epidemic, the DEA is relentless in shutting down those who profit from fueling addiction."

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Houston-based crime ring targeted independent pharmacies

The investigation began when the DEA identified more than 20 pharmacy burglaries that occurred in Arkansas between February 2022 and November 2023, according to federal authorities. Prosecutors said the suspects used similar methods of entry and tools in each of the burglaries, in addition to wearing matching clothing and unique footwear.

Investigators identified the suspects as members of a drug trafficking organization that comprised documented local gang members from the 5th Ward area in Houston, Texas. After 18 suspects were arrested in November 2023, the DEA identified 24 additional co-conspirators who prosecutors said were involved in numerous burglaries across 31 states.

The drug trafficking organization targeted independent, non-chain pharmacies in rural areas, according to Ross.

"They traveled by rental car or commercial airlines from Houston to cities — coast to coast — where in the early morning hours, they would shatter glass at pharmacy locations, low crawl on the floor to evade motion detectors and systematically remove dangerous opioid benzodiazepines, promethazine with codeine and other scheduled medication from the pharmacy shelves," Ross said.

Ross added that hundreds of thousands of pharmaceutical drugs with a street value of more than $12 million had been stolen.

During arrest operations in Houston, law enforcement officials seized 11 firearms, about $79,000 in U.S. currency, and custom jewelry that retailed at about $510,000. The seized items and money were "proceeds from the sale of stolen pharmaceutical drugs," according to Ross.

Arrests mark 'significant victory' in fight against drug trafficking organizations

Steven Hofer, DEA’s special agent in charge for the New Orleans Division, called Thursday's announcement a "significant victory in the ongoing fight against criminal drug trafficking organizations."

"When these stolen medications fall into the wrong hands, they're just as threatening to our community because of their potential for misuse and abuse," Hofer said at Thursday's news conference. "This organization sought to sell these stolen pharmaceuticals in the same way criminals traffic fentanyl and methamphetamine in our neighborhoods."

The DEA noted that the agency has seen a surge in burglaries at independent pharmacies across the country in recent years. The agency said nearly 900 burglaries were reported to the DEA in 2023.

"As a result, pharmacies lost almost 3.8 million doses of controlled substances," Hofer added. "This equates to more than $12 million in profits."

Federal authorities have been cracking down on illegal drug operations as the United States remains in the "midst of an unprecedented opioid epidemic," according to the Health Resources and Services Administration.

Federal data shows that more than 130 people die a day from an opioid-related drug overdose. In 2023 alone, over 81,000 people died from overdoses involving opioids, according to the Centers for Disease Control and Prevention.