Houston Pharmacy Owner Gets 19 Years for Opioid Scheme

A Texas man was sentenced on Monday to 19 years in prison for unlawfully conspiring to distribute millions of opioid pills and aiding the falsification of tax records.

According to court documents, Christopher Obaze, 64, of Houston, Texas, was the owner and pharmacist-in-charge of Chrisco Pharmacy. Obaze and his co-conspirators operated Chrisco Pharmacy as an illegal “ghosting pharmacy,” purchasing pharmaceutical opioids and other commonly abused prescription drugs from wholesalers and then selling them in bulk to drug traffickers, without involving physicians, patients, or prescriptions. From January 2018 through October 2021, Obaze and his co-conspirators distributed at least 2,268,700 hydrocodone 10-325 mg and oxycodone 30 mg pills as part of the scheme.

The defendant and his pharmacy technician attempted to conceal their illegal activities by reporting no dispensing of the drugs to the Texas State Board of Pharmacy’s prescription monitoring program after July 2018, and by structuring cash deposits and submitting false documents to banks to maintain accounts to hold the proceeds of their unlawful distribution scheme. Obaze also aided and assisted in the preparation and presentation of false and fraudulent tax returns to the IRS by understating, among other things, the gross receipts of Chrisco Pharmacy.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, Special Agent in Charge William Kimbell of the Drug Enforcement Administration (DEA) Houston Division, and Special Agent in Charge Lucy Tan of the IRS Criminal Investigation (IRS-CI) Houston Field Office made the announcement.

The DEA and IRS-CI investigated the case.

Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section prosecuted the case.

Public Release. More on this here.