Federal Drug-Importation Case Targets CANARX Leaders; Treasurer Arrested

Federal authorities have charged two top officials of Canadian prescription-drug provider CANARX in an alleged scheme to import medications illegally into the United States, according to court records reported by CNBC.

John Thomas Howard, the company's treasurer and a director, was arrested Sunday on charges that include conspiracy, smuggling, introducing misbranded drugs into interstate commerce and illegal drug importation. No plea had been filed, CNBC reported Wednesday.

His brother Bob Howard, CANARX's president and a director, is also wanted in the investigation and had not been taken into custody, according to an affidavit cited in the report. The criminal complaint covers an alleged scheme running from February 2017 through April 2026.

CANARX, based in Windsor, Ontario, provides prescription medications to U.S. customers through programs used by private and public employers. The company says it sources medicines from Canada, the United Kingdom, Australia and New Zealand.

The allegations center on whether those shipments complied with U.S. drug-importation rules. The FDA has said that, in most circumstances, individuals cannot import prescription drugs from other countries as substitutes for FDA-approved medicines. The affidavit cited by CNBC did not identify the specific medications investigators believe were illegally imported.

The company's general counsel said the brothers deny all charges, intend to defend themselves and expect to be vindicated in court. The charges are allegations and have not been proven in court.