Opiate tycoons sent $1 billion to Swiss banks: court files
September 14, 2019
The Sackler family, which owns OxyContin maker Purdue Pharma, is believed to have transferred about $1 billion (€900 million) to themselves, including to their Swiss bank accounts, court papers showed.
Image: picture-alliance/AP Photo/T. Talbot
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The Sackler family used Swiss and other hidden accounts to transfer $1 billion (€900 million) to themselves, New York State's attorney general said in court papers filed on Friday.
The information came out as the Sacklers and their company, Purdue Pharma, are in the process of reaching compensation agreements for those hurt by opioid painkillers.
The company and family sit at the heart of investigations into the US opioid abuse epidemic, facing accusations that they flooded US communities with prescription painkillers.
Opioids were involved in 47,600 overdose deaths in 2017, more than two-thirds of all drug-related overdose fatalities, according to the Center for Disease Control.
On the front line of the opioid epidemic in the US
Cheryl, a 71-year-old woman from Phoenix, has adopted her 3-year-old great-grandniece Jessie, who was an addict before she was even born, suffering from drug withdrawal symptoms at birth. Eline van Nes reports.
Image: Reuters/B. Snyder
Going out for the day
While Jessie sits in her car seat, Cheryl takes out the baby stroller to be able to push Jessie around through the shopping mall. Cheryl doesn't take Jessie to the mall often because it's tiring to go on these trips. She prefers staying at home, or they go to the nearby playground. They often visit Jessie's biological sister who lives two doors down.
Image: DW/E. Van Nes
Catching her breath
Raising a 3-year-old as a 71-year-old is a lot to ask for. The number of grandparents taking care of their grandchildren in the US because their parents are addicted to drugs, specifically opioids, is increasing. According to recent studies, around 12 percent of children in Arizona live with relatives, almost 9 percent of those live with their grandparents.
Image: DW/E. Van Nes
Sitting on a bunch of admin
On July 9, the Supporting Grandparents Raising Grandchildren Act was signed into law. It's designed for grandparents who need information and assistance on issues in dealing with legal custody, available social services, and mental health counseling. One problem, however, is that relatives who take care of a child don't get the same amount of financial support that foster care families do.
Image: DW/E. Van Nes
A little joy goes a long way
Jessie was apprehensive about riding the merry-go-round for the first time. When Cheryl was buying the tickets, the vendor asked about Jessie. Cheryl said that Jessie was her own daughter. She thinks Jessie's biological mother is still alive, but doesn't know where she is or if she's in rehab. "The last time she was seen was in the fall of last year. Rumor has it that she was in Mesa."
Image: DW/E. Van Nes
Finding a way to make it work
Cheryl knows that because of her age she probably won't be around when Jessie grows up. She has some physical problems and Jessie does wear her out, but she doesn't see a problem there. She believes it's important Jessie is around family and not in the care of strangers. Her son will take care of Jessie after Cheryl's gone.
Image: DW/E. Van Nes
Sunday school
Every Sunday, Cheryl and Jessie go to a Presbyterian church. Jessie is too young to attend the sermon so she goes to Sunday school. After the sermon, Cheryl and Jessie join other families for snacks in a large auditorium. The church has always been supportive of Cheryl. She has lost three husbands and a son due to a drug overdose. Cheryl believes taking care of Jessie is her last calling.
Image: DW/E. Van Nes
Pushing Mommy around
Cheryl has permanent damage to her back and also suffers from arthritis in her hands and sciatica in both legs. She wears a back brace to help relieve the pain. To be able to cope with the pain, she takes painkillers and other medicines. She can't do without — especially with a young toddler pushing her around.
Image: DW/E. Van Nes
It's my party
It's Jessie's third birthday. Only a few guests have been invited, so that it doesn't get too busy for Jessie. Jessie's mother had two other children: Jessie's older sister, who's in the care of Cheryl's brother and his wife. But they couldn't handle more than that. Jessie's little brother has been adopted by a foster family.
Image: DW/E. Van Nes
Taking it easy
Just before Jessie's mother went into labor, she had another hit of methamphetamine. After Jessie was born she was crying and screaming and twitching — typical withdrawal signs. Since then, Jessie has had to cope with a raft of health problems as a result of the drug abuse during pregnancy. Doctors are still monitoring her to see if there is any permanent damage.
Image: DW/E. Van Nes
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Complex transactions
The lawsuits against Purdue, the maker of OxyContin, are coming from local and state officials across more than 20 states in the United States.
The Sackler family's money transfers bolster allegations by New York and other states that the Sacklers worked to shield their wealth in recent years because of mounting worries about legal threats.
As part of the settlement with authorities, Purdue is likely to soon file for bankruptcy protection.
But New York and other states have promised they will continue to pursue the Sacklers, alleging that family members drained more than $4 billion from the company over the past 12 years.
The family has used a complex chain of companies and trusts to control their holdings, some located in offshore tax havens.
The Sacklers had an estimated net worth of $13 billion as of 2016, making them one of the richest families in the US, according to Forbes magazine.
In its filing Friday, New York told a state judge that the only way it can determine the full extent of those transfers is if all those it has subpoenaed are forced to provide documents detailing their interactions with the Sackler family.
"While the Sacklers continue to lowball victims and skirt a responsible settlement, we refuse to allow the family to misuse the courts in an effort to shield their financial misconduct," New York Attorney General Letitia James said in a statement.
