NECC Owners and Shareholders Received $16 Million in Wages, Profits

According to court documents, the family members, who served as the New England Compounding Center's directors paid themselves more than $16 million in wages and profits within a 12-month period.

The owners of the Framingham pharmacy linked to the national meningitis outbreak that infected more than 600 individuals and killed 44 individuals, received more than $16 million in wages and profits.

According to court documents, the family members, who served as the New England Compounding Center's directors paid themselves more than $16 million with the largest payout to the the specialty pharmacy's majority shareholder, Carla Conigliaro - $8.7 million.

Barry Cadden, the company's chief pharmacist, received about $3.2 million in 2012, filings show.

His wife, Lisa Cadden, received about $2.8 million.

Greg Conigliaro, a recycling entrepreneur received about $1.6 million.

Carla Conigliaro owns 55 percent of the company stock, while her husband, Gregory, owns 10 percent. He also is treasurer and vice president of NECC.

Barry Cadden and his wife, Lisa Cadden, each own 17.5 percent. Lisa Cadden is Gregory Conigliaro’s sister.

The embattled specialty pharmacy filed paperwork with the U.S. Bankruptcy Court in Boston listing assets of $1.259 million and liabilities of $885,514.

NECC filed for bankruptcy protection just before Christmas.

A hearing has been scheduled for tomorrow in Springfield on a request for an independent trustee to oversee bankruptcy proceedings.

Boston.Com reported that also in filings that family members racked up $90,000 on corporate American Express credit cards, including charges made after the company shut down in early October.

An attorney involved in the bankruptcy case told Boston.com he felt “shock and amazement” when he saw the list of payments for family members.

"The bottom line is that instead of using the money to remedy the pharmacy's problems, which now look like a ticking time bomb, they took the money out," said David Molton, a lawyer at Brown Rudnick LLP, which is representing the official committee of unsecured creditors in NECC's bankruptcy.

The Framingham pharmacy has closed, surrendered its license, and recalled its products.

A federal judge has ruled any criminal case against a Framingham specialty pharmacy New England Compounding Center (NECC) would have priority over the numerous civil suits.

Just before Thanksgiving,

Later, NECC recalled every product made and laid off all employees.

Later, CDC and FDA officials confirmed a fungus was found in those recalled steroids and recently, fungus and bacteria were found in other NECC products.

The FDA released a list of customers, who received products from NECC in Framingham on or after May 21.


Click here to find all of Framingham Patch’s coverage of NECC and the meningitis outbreak.


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