Federal prosecutors have charged two executives of CANARX, a Canadian-based company, with illegally importing prescription medications into the United States. John Thomas Howard, the company’s treasurer and director, was arrested on Sunday on smuggling and conspiracy charges, while his brother Bob Howard, who serves as president and director, remains at large but is named in the investigation.
According to court documents filed Tuesday, John Thomas Howard faces multiple charges including conspiracy, smuggling, introducing misbranded drugs into interstate commerce, and illegal drug importation. The charges cover a period spanning from February 22, 2017, through April 15, 2026. An affidavit from a special agent with the Food and Drug Administration’s Office of Criminal Investigations asserts there is probable cause to believe CANARX engaged in the illegal importation of prescription drugs. The company’s general counsel stated that both brothers deny the allegations and plan to defend themselves vigorously in court, expressing confidence they will be vindicated.
CARARX, founded in 2002 and based in Windsor, Ontario, operates as what is known as an alternative funding program, or AFP. These companies have grown in prominence as healthcare costs have risen, offering specialty medications at reduced prices to employers and their staff. CANARX has long claimed to source medications from highly regulated countries including Canada, the United Kingdom, Australia, and New Zealand. However, the FDA has maintained that the company’s operations of sourcing medications from abroad and shipping them directly to patients constitute illegal importation practices that pose safety risks.
The company has faced regulatory scrutiny for several years. In 2019, the FDA issued a warning letter stating the company was substituting FDA-approved medications with unapproved drugs. In 2023, the agency seized medication being shipped by CANARX that it characterized as potentially misbranded and counterfeit. Additionally, pharmaceutical manufacturer Gilead Sciences has filed a pending civil lawsuit against CANARX and other companies alleging illegal importation of its HIV medication Biktarvy.
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