Prosecution rests in Applied Pharmacy Services steroids case.

After nearly a month of testimony, federal prosecutors on Wednesday wrapped up their case against 10 people accused of running a Mobile-based conspiracy to sell steroids across the country.

Special Agent Craig Underwood, a criminal investigator with the IRS, spent parts of two days this week testifying about records seized during an August 2006 raid of Applied Pharmacy Services.


Prosecutors contend that the compounding pharmacy, located on International Drive near Bel Air Mall, shipped thousands of doses of anabolic steroids to customers throughout the country between March 2003 and August 2006.


The owners of the business and pharmacists who work there countered that they had valid prescriptions from licensed physicians.


Chief U.S. District Judge Ginny Granade sent jurors home until Friday, when the defendants will begin their case. Today, the judge will consider arguments that some or all of the nearly 200 counts should be dismissed.


According to Underwood's testimony, pharmacist J. Mallory Mallon told investigators that growth hormones and anabolic steroids made up 60 to 80 percent of the company's business.


Underwood testified that documents seized from Applied Pharmacy contained information about some 1,169 doses of drugs that were left out of records that the company's chief executive officer, A. Samuel Kelley II, turned over to the Drug Enforcement Administration in April 2004.


For instance, the agent said, the records given to the DEA made no mention of orders for stanozolol injectable, a steroid that experts have testified is designed for use in livestock and has not been approved for human use.


Under cross-examination, Underwood acknowledged that he had no indication that any of the records kept by Applied Pharmacy had been destroyed or hidden.


Kelley's attorney, Howard Dodd, introduced documents suggesting that Applied Pharmacy had a compliance committee that made reports and recommendations from 2003 to 2006 regarding adhering to laws and regulations.


Underwood conceded that the pharmacy put various doctors on a "do not fill" list and stopped supplying a company called Health Watch after learning it was under investigation.


Dodd also got Underwood to acknowledge that Applied Pharmacy kept records that, in some cases, contained greater detail than required under federal law.


For instance, the pharmacy sometimes required doctors to provide a written explanation of the underlying diagnosis that prompted the prescription. Federal law makes no such requirement, Underwood said.

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