--- title: "US authorities accuse two Canadian officials of smuggling prescription drugs" url: https://noti.group/us-authorities-accuse-two-canadian-officials-of-smuggling/ language: en publisher: "Noti Group" section: "Business" published: 2026-11-11T22:58:11.000Z updated: 2026-11-11T23:24:29.132Z id: 833dc2b2-8995-49d3-98bb-5f910dbe1170 source: "CNBC https://www.cnbc.com/2026/11/11/canarx-official-arrested-drug-importation.html" attribution: "Link to https://noti.group/us-authorities-accuse-two-canadian-officials-of-smuggling/ and name Noti Group when you quote or summarize this story." --- # US authorities accuse two Canadian officials of smuggling prescription drugs Federal investigators have accused John Thomas Howard and his brother Bob Howard of running a large-scale scheme to smuggle prescription drugs into the country. US authorities have accused two top officials of a Canadian company of running a large-scale scheme to smuggle prescription drugs into the country, according to court records filed on Tuesday. John Thomas Howard, who serves as treasurer and director at CANARX, was arrested over the weekend on charges of conspiracy and smuggling. His brother, Bob Howard, is also wanted in connection with the federal investigation and currently remains at large. A search warrant issued in conjunction with the arrest alleges that John Thomas Howard has been involved in introducing misbranded drugs into interstate commerce and illegally importing prescription medications. CANARX was previously scrutinized by a CNBC investigation last year, which highlighted how companies like this one are increasingly gaining traction across the US. These firms offer high-cost specialty drugs at lower prices through private and public employers, with some organizations requiring staff to use their services. A trail of imported medications has been linked to several companies offering discounted prescription drugs to American patients, sparking concerns over safety risks and potential illegality. These firms often source their medications from abroad and ship them directly to patients, a practice that federal authorities have deemed unauthorized and potentially hazardous. The pharmaceutical companies producing these medications have not sanctioned this supply chain, raising questions about the legitimacy of these imports. CANARX, an international prescription provider based in Windsor, Ontario, Canada, claims to be a pioneer in its field, boasting on its website that it sources medications from various countries including Canada, the United Kingdom, Australia, and New Zealand. However, federal investigators have raised suspicions about the company's practices, suggesting that they may be engaging in unauthorized importation of prescription drugs. The FDA has reportedly found probable cause to believe that CANARX was involved in importing or causing the importation of prescription medications into the US, but the specific medications in question are not specified. The agency's investigation spans a period from February 22, 2017, through April 15, 2026. The FDA has been scrutinizing CANARX's operations for several years, and it appears that this scrutiny has led to more recent actions by federal authorities. In 2023, the agency seized medication being shipped by the company due to concerns over potential misbranding and counterfeiting. A warning letter sent by the FDA in 2019 raised similar concerns about CANARX's practices. At the time, the agency alleged that the company was substituting FDA-approved medications with unapproved alternatives. In response, CANARX agreed to stop importing certain drugs that require a doctor's administration. Despite these allegations and warnings, Morris has maintained that CANARX operates within the law. He claims that the medicines shipped to U.S. patients come from countries with strict regulations in place. However, the legality of importing prescription drugs for personal use remains a complex issue. The FDA does permit Americans to import medications under certain circumstances, such as when the drug is not available domestically. This loophole has been exploited by CANARX and other companies that build their business models around shipping medicines directly to patients. The US government's crackdown on illegal drug importation has led to significant consequences for companies exploiting loopholes in healthcare regulations. A spokesperson for Gilead Sciences, a pharmaceutical company that developed the HIV treatment Biktarvy, stated that the firm "has taken strong legal action to protect patients and the integrity of the U.S. medicines supply chain." This move is part of an ongoing civil lawsuit against CANARX and other companies accused of importing Biktarvy without proper authorization. The FDA has consistently maintained that in most cases, individuals cannot import prescription medications from abroad as substitutes for FDA-approved drugs, highlighting the risks associated with such practices. As a result, patients may be exposed to unverified or counterfeit products, compromising their health and well-being. --- Source: [CNBC](https://www.cnbc.com/2026/11/11/canarx-official-arrested-drug-importation.html) Published by Noti Group: https://noti.group/us-authorities-accuse-two-canadian-officials-of-smuggling/