Ex-HHS deputy Allen in fraud arrest

Share this article:
Claude Alexander Allen, the No. 2 Bush appointee at the Department of Health and Human Services (HHS), was arrested in March for allegedly swindling retail stores out of more than $5,000 in 25 fraudulent refunds since January. His lawyer told The Washington Post the incidents were “a series of misunderstandings.”

Allen left the HHS after three years as deputy secretary. In that post, he issued a directive that all FDA Warning Letters and untitled letters be vetted before issuance by the Office of Chief Counsel, then headed by newly appointed Dan Troy.

At the time, Allen, who slashed the FDA's issuance of Warning Letters by as much as 70% in 2001, said it was not his intention that the directive should have “a chilling effect on enforcement” as critics were then complaining.

However, it did have such an effect and added more than a month to the FDA's letter-issuance time and drastically curtailed the number of letters issued. Industry's rate of product recalls, traditionally seen as an inverse barometer of FDA enforcement, soared 42% after Warning Letters were reduced. 
A police spokesperson told the Post that Allen had received 25 fraudulent refunds for products ranging from stereo equipment   and clothes to items worth as little as $2.50.
Share this article:

Next Article in Features

Email Newsletters

More in Features

Antidote: On Cystic Fibrosis treatments

Antidote: On Cystic Fibrosis treatments

Recent treatments in CF, including the inhaled antibiotic Tobramycin, have increased lifespan well into adulthood.

The $3 generic and the $1,000 pill: pharma outsiders just don't get it

The $3 generic and the $1,000 pill: pharma ...

What do you call the people who treat medical breakthroughs as if they were bank heists? Malicious? Uninformed? Not with it?

Leadership Exchange Uncut : The Agency-Client Relationship

Leadership Exchange Uncut : The Agency-Client Relationship

Click the above link to access MM&M's first Leadership Exchange Uncut e-book, "The Agency-Client Relationship"