Pharmed Group

The Pharmed group was a distributor of medical, surgical, pharmaceutical and rehabilitative supplies in Florida and the largest Hispanic distributor in the United States, Latin America and the Caribbean. In 2007, the company and its founders were charged with multiple counts of health care fraud and tax evasion, and Pharmed declared bankruptcy later that year. In 2009, Pharmed founders Carlos De Cespedes and Jorge De Cespedes pleaded guilty to health care-related wire fraud and tax evasion and were sentenced to 9 years in federal prison. Pharmed was liquidated in bankruptcy and is no longer in operation.
Founders’ Pedro Pan Beginnings
In 1961, the de Céspedes parents entrusted the lives of their two boys, Carlos and Jorge, to the Roman Catholic Church in the United States. Operation “Pedro Pan,” a program created by the Catholic Welfare Bureau of Miami in December 1960, brought many young children to the United States at the request of parents in Cuba who sought a means to send their children to Miami to avoid Marxist-Leninist indoctrination. Operation Pedro Pan separated many children from their parents. Separated upon arrival in Miami, the de Céspedes boys were raised in an orphanage and were allowed to visit one another once a week. This involuntary separation helped the brothers form a bond that has proven to be unyielding and unmatched. So much so that when SmithKline decided it needed a second sales rep in South Florida, Carlos recommended his brother Jorge. Here began the business partnership that would flourish into The Pharmed Group.
The success of The Pharmed Group was attributed to the entrepreneurial spirit and steadfast determination of its founders, but that view changed once the brothers plead guilty to felony fraud and were sentenced to federal prison. In one example, the de Céspedes brothers admitted to cheating the Kendall Regional Medical Center out of $5 million through fraudulent practices. Pharmed declared bankruptcy in 2007, was liquidated and is no longer in operation. In its bankruptcy filing, the company claimed an acquisition and loss of major customers led to bankruptcy but it failed to mention the fraud prosecution of the company and its founders.
Giving Back
Pharmed donated money and time to many community organizations and causes, including Little League and NCAA-sanctioned basketball summer leagues, and providing presents and meals for the needy during the holidays. The brothers were honored by many local charities for their philanthropic work. They were named Humanitarians of the Year in 2006 by the American Red Cross of Greater Miami & the Keys; inducted into the Florida International University College of Business Entrepreneurship Hall of Fame in 2005 among dozens of business awards they received.
However, the de Céspedes brothers' and Pharmed's record of community involvement was tarnished by their admission that they intentionally defrauded hospitals, Medicare and Medicaid, and the United States Government.<ref nameUSAOSDF /><ref nameSFBJ />

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