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Larry Cote quoted in article “FedEx Money-Laundering Charge Adds Pressure to Drug Case”

Bloomberg Businessweek

Following is an excerpt:

Federal prosecutors are seeking to compel FedEx Corp. (FDX:US) to settle a pending drug-trafficking case by adding money-laundering charges against the parcel shipping company, attorneys and analysts said.

“This looks like it’s a matter of ratcheting up the pressure,” said Larry Cote, an attorney at Quarles & Brady LLP in Washington and former associate counsel with the U.S. Drug Enforcement Administration. “It’s like charging someone with murder and then adding an underlying weapons charge.”

Allegations of conspiring to launder money were added Aug. 15 to July conspiracy and drug-trafficking charges. The U.S. alleges that FedEx delivered drugs for online pharmacies supplying pills to customers who were never examined by doctors, while knowing the actions violated federal and state drug laws. FedEx claims it’s innocent of all counts and will fight the case in court.

Originally published in Bloomberg Businessweek, August 18, 2014