N.Y. Man Admits to Selling Stolen Drugs at Tracks

According to federal prosecutors, a 58-year-old New York man has admitted to stealing equine medications, specifically Adequan, from his employer and then selling those drugs at New York racetracks.

The United States Attorney for the Eastern District of New York said that Gregory Settino, of Bethpage, N.Y., pleaded guilty to charges related to theft of those drugs Dec. 4 in the federal courthouse in Central Islip. When sentenced, Settino faces up to 20 years in prison, restitution to his former employer, and a fine of up to $250,000. The proceeding took place before U.S. District Judge Joanna Seybert.

"With today's guilty plea, Settino has been held accountable for stealing from his then-employer thousands of bottles of an injectable drug administered to horses, which he resold to trainers and vets potentially endangering the health of horses at New York racetracks because the stolen drugs were not handled properly," stated acting U.S. Attorney Seth DuCharme. "This office will vigorously prosecute those who jeopardized drug safety."  

With the guilty plea in place, federal prosecutors outlined the scheme as set forth in court filings and facts admitted in court. Settino was the production supervisor of manufacturing at Luitpold Pharmaceuticals (renamed American Regent in 2019) in Shirley, N.Y. One of the products manufactured at Luitpold/American Regent was Adequan, an injectable equine drug administered to horses with degenerative joint disease and sold throughout the United States.  

Between 2012-January 2020, Settino stole thousands of bottles of Adequan from Luitpold and American Regent valued at more than $1 million and sold those drugs to horse trainers and veterinarians at New York racetracks, including Belmont Park, for more than $600,000. 

While Adequan is approved by the FDA for equine use, Settino's conduct potentially endangered the health of horses because the drugs were not maintained, stored, or transported in accordance with proper procedures for ensuring the safety, effectiveness, and efficacy of the drugs.

At times, Settino transported the drugs in shoeboxes stored in his car. At all times, the drugs were handled in violation of the FDA-regulated supply chain. 

"The FDA works to ensure that veterinary drugs are safe and effective so that animals remain healthy. When drugs are taken out of the legitimate supply chain, there is no longer any assurance that they are safe or effective," stated FDA-OCI special agent-in-charge Jeffrey Ebersole. "The FDA remains committed to investigating and bringing to justice those who endanger the health of animals."