Warwick Man Charged in $1.6M OTC Drug Ring Bust

WARWICK, RI — A Warwick man arrested in a $1.6M over-the-counter, or OTC drug ring bust is charged as one of two diverters setting up shell companies, securing stolen goods warehouses and acting as suppliers for small and mid-size retail chains.

According to court documents, officials allege Norman L. Cipriano, 52, of Warwick, and Patrick M. Vigneau, 59, of Cranston, RI, are high-level wholesalers known within organized theft rings as Diverters. Crime organizations frequently use  e-commerce marketplaces to promote and offer their goods and use unregulated third-party processors such as PayPal in order to avoid detection, according to Zachary A. Cunha, United States Attorney for the District of Rhode Island.

To date, agents and task force officers from the United States Postal Inspection Service, Homeland Security Investigations, and the Warwick Police Department have executed multiple search warrants in Warwick, Cranston, and Pawtucket, RI, seizing enough stolen goods to fill three fully loaded 24-foot box trucks in the OTC drug ring bust.  Authorities have also moved to freeze several bank and e-commerce accounts, and have seized more than two dozen boxes in transit via UPS.

Cunha’s office said the Rhode Island-based OTC drug ring has netted roughly $12.3 million dollars in sales over recent years.

“The scale of the retail theft network whose alleged leaders we have charged today is staggering,” remarked Cunha. “In addition to imposing higher prices on legitimate retail consumers, theft rings like this one put unsuspecting customers at risk from damaged, expired, or adulterated goods, and impose untold economic costs.  Today’s arrests and the disruption of this network reflects the kind of tenacity and dedication that this Office and our partners will continue to bring to bear to combat this type of brazen criminality.”

Colonel Bradford Connor of the Warwick Police Department stated, “The Warwick Police Department is dedicated to collaborating with our state and local partners to fight organized retail theft. This investigation highlights the various schemes aimed at defrauding businesses and citizens. The joint efforts of the United States Postal Inspection Service, Homeland Security Investigations, and the U.S. Attorney’s Office were crucial in bringing these individuals to justice and dismantling this organized crime ring.”

Cipriano and Vigneau are charged by way of federal criminal complaints with interstate transportation of stolen goods, conspiracy to commit interstate transportation of stolen goods, money laundering, conspiracy to commit money laundering, and engaging in monetary transactions in property derived from unlawful activity.

RI OTC Drug Ring Details

 Court documents supporting the RI OTC Drug bust allege that organized theft rings operate by dividing responsibilities among various individuals.  At the first stage, these rings employ individuals known as “Boosters,” led by Crew Bosses who provide them with lists of items to be stolen from retail outlets, most often high-demand, high-priced products.

The stolen items are then turned over to “Fencers,” middlemen who work between the Boosters/Crew Bosses and other individuals involved in the organization. Fencers move the items to “Cleansers” who strip retail and anti-theft stickers and devices from the stolen items prior to them being shipped off to “Diverters.” Diverters  act as wholesalers, salespeople, or coordinators of secondary sales, often times selling the stolen goods to small to mid-sized retail chains that in turn sell the products to consumers. 

 In this matter, it is alleged that stolen and cleaned merchandise was turned over to Cipriano and Vigneau in their roles as Diverters. The defendants, allegedly operating under the names of various shell companies, and working with others, sold large volumes of stolen merchandise via e-commerce sites such as eBay, Walmart, and Amazon. In order to avoid detection, unregulated third-party processors, such as PayPal, were used, tied to bank accounts controlled by the defendants.

According to court records, Cipriano was convicted in Rhode Island state court in 2005 and served a term of six years of incarceration for conspiracy and receiving stolen goods. Additionally, Cipriano was convicted in federal court in August 2013 on a charge of trafficking counterfeit goods and was sentenced to 50 months in federal prison.

Vigneau, convicted by a federal jury in March 1998 on charges of engaging in a continuing enterprise, possession with intent to distribute marijuana, and conspiring to commit money laundering, was released from federal prison in 2020 and  is currently serving a term of federal supervised release.

 The OTC drug ring case is being prosecuted by Assistant United States Attorney Ly T. Chin.

 The case following the RI OTC D\drug bust is being investigated by the United States Postal Inspection Service, Homeland Security Investigations (HSI) New England, HSI Providence, and the Warwick, RI, Police Department.