Reverse Drug Distributor Wins Appeal of Money Laundering Charge

Convictions against reverse drug distributor Devos Ltd. and two of its officers for conspiracy to launder money were vacated Wednesday by the Third Circuit, which said the evidence failed to show the company’s financial transfers were designed to conceal fraud proceeds.

The court’s decision, which upheld all other convictions against the defendants, required the case to be sent back to the trial court to recalculate their sentences and a $115 million forfeiture order, the opinion by Judge Julio M. Fuentes said.

Devos, which trades as Guaranteed Returns, operates inventory management for healthcare providers and the Department of Defense by returning ...