Conviction could cost FedEx $820 million in fines and penalties - KPLC 7 News, Lake Charles, Louisiana

Conviction could cost FedEx $820 million in fines and penalties

(Source: WMC Action News 5) (Source: WMC Action News 5)

(WMC) - Shelby County's largest employer delivers 10 million packages around the world each day. But Thursday, FedEx itself was delivered a federal indictment.

A Grand Jury indicted the company for knowingly shipping prescription drugs to dealers and addicts from illegal online pharmacies. The charges come after a 9-year federal investigation.

A former U.S. attorney in Memphis suspects the case will end in a compromise.

"There are a lot of allegations in the indictment," former Western District of Tennessee U.S. Attorney David Kustoff said.

Kustoff says the allegations are the same as shipping giant UPS faced.

"In the end, they'll likely be some compromise between the government and FedEx with some money exchanging hands," he suggested.

According to the indictment, FedEx knew something shady was happening. For example, there were aggressive customers who would jump on trucks, threaten drivers, and demand their shipments immediately.

FedEx says it is innocent and will plead not guilty to the charges.

In a statement, the shipping giant said:

FedEx is innocent of the charges brought today by the Department of Justice. We will plead not guilty. We will defend against this attack on the integrity and good name of FedEx and its employees.

FedEx has a 42-year history of close cooperation with law enforcement agencies. We're proud to say that we have partnered with the FBI, the Department of Homeland Security, DEA, and other federal, state and local law enforcement teams around the world to help stop illegal drug activity and bring criminals to justice. These efforts include providing assistance to the DEA in combating rogue Internet pharmacies. We have repeatedly requested that the government provide us a list of online pharmacies engaging in illegal activity. Whenever DEA provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately. So far the government has declined to provide such a list.

FedEx transports more than 10 million packages a day. The privacy of our customers is essential to the core of our business. This privacy is now at risk, based on the charges by the Department of Justice related to the transportation of prescription medications.

We want to be clear what's at stake here: the government is suggesting that FedEx assume criminal responsibility for the legality of the contents of the millions of packages that we pick up and deliver every day. We are a transportation company – we are not law enforcement. We have no interest in violating the privacy of our customers. We continue to stand ready and willing to support and assist law enforcement. We cannot, however, do the job of law enforcement ourselves.

According to the government, the indictment "highlights the importance of holding corporations that knowingly enable illegal activity responsible for their role in aiding criminal behavior."

A conviction could mean more than $820 million in fines and penalties.

Copyright 2014 WMC Action News 5. All rights reserved.

  • More Local NewsNewsMore>>

  • FIRST ALERT FORECAST: Partly sunny and hot

    FIRST ALERT FORECAST: Partly sunny and hot

    Saturday, June 23 2018 4:17 PM EDT2018-06-23 20:17:05 GMT
    Triple digit feels-like temperatures for most of next week (Source: KPLC)Triple digit feels-like temperatures for most of next week (Source: KPLC)
    Triple digit feels-like temperatures for most of next week (Source: KPLC)Triple digit feels-like temperatures for most of next week (Source: KPLC)

    Through the rest of today expect skies to remain partly cloudy.  Unfortunately, this does not help our temperatures much as highs will get into the 90s and feels-like temperatures will be in the triple digits.  We do have a slight breeze along and south of the I-10 corridor between 5-10 mph helping to keep air flowing.  Tonight, temperatures will still be warm not dropping out of the mid 70s across southwest Louisiana.  

    More >>

    Through the rest of today expect skies to remain partly cloudy.  Unfortunately, this does not help our temperatures much as highs will get into the 90s and feels-like temperatures will be in the triple digits.  We do have a slight breeze along and south of the I-10 corridor between 5-10 mph helping to keep air flowing.  Tonight, temperatures will still be warm not dropping out of the mid 70s across southwest Louisiana.  

    More >>
  • Four-year-old fatally shot in Oakdale

    Four-year-old fatally shot in Oakdale

    Saturday, June 23 2018 3:59 PM EDT2018-06-23 19:59:40 GMT
    (Source: Raycom News Network)(Source: Raycom News Network)
    (Source: Raycom News Network)(Source: Raycom News Network)

    A four-year-old boy was fatally shot in Oakdale Saturday, according to Chief Joseph Lockett. Lockett says officers were dispatched to Prater Street in reference to a subject being shot. Upon arrival, officers learned that a four-year-old boy located a loaded .40 caliber handgun inside the home. For unknown reasons, the gun discharged and struck the child in the head. The child was pronounced dead at the scene. The investigation is ongoing and 7News will update the story as updates b...

    More >>

    A four-year-old boy was fatally shot in Oakdale Saturday, according to Chief Joseph Lockett. Lockett says officers were dispatched to Prater Street in reference to a subject being shot. Upon arrival, officers learned that a four-year-old boy located a loaded .40 caliber handgun inside the home. For unknown reasons, the gun discharged and struck the child in the head. The child was pronounced dead at the scene. The investigation is ongoing and 7News will update the story as updates b...

    More >>
  • TRAFFIC: Avoid I-10 EB near Welsh due to accident

    TRAFFIC: Avoid I-10 EB near Welsh due to accident

    Saturday, June 23 2018 12:18 PM EDT2018-06-23 16:18:23 GMT
    (Source: Pablo)(Source: Pablo)

    I-10 EB is blocked near Welsh due to a vehicle accident. Please take an alternate route. 7News will update the story as information becomes available. Copyright 2018 KPLC. All rights reserved.

    More >>

    I-10 EB is blocked near Welsh due to a vehicle accident. Please take an alternate route. 7News will update the story as information becomes available. Copyright 2018 KPLC. All rights reserved.

    More >>
Powered by Frankly