UPDATED: Federal Agents Arrest Owners, 12 Others in Connection to Deadly Meningitis Linked to NECC

UPDATED

The U.S. attorney office has confirmed that Gregory Conigliaro of Southborough and Barry Cadden of Wrentham, co-founders of the New England Compounding Center in Framingham, were among 14 people arrested Wednesday morning.

Charges to include racketeering with 25 predicate acts of second degree murder in 7 states.

Two of the 14 arrested, Doug and Carla Conigliaro, who owned a 55 percent stake in NECC, are being charged with violating an order issued after the deadly meningitis outbreak, and transferring more than $33 million worth of assets.

Arraignments will be in federal court in Boston later today.

*** Original report at 6:33 a.m.

There are multiple reports this morning that federal agents are making arrests in connecting to the 2012 deadly meningitis outbreak, tied to Framingham-based New England Compounding Center.

The outbreak killed 64 people and infected more than 750 individuals, but none in Framingham or Massachusetts.

In September, federal authorities made their first arrest in the case.

New England Compounding Center’s supervising pharmacist was arrested after he attempted to board a plane to Hong Kong from Boston’s Logan International Airport. The U.S. Attorney’s Office arrested Glenn Adam Chin, 46, of Canton, in connection to an ongoing criminal investigation of NECC that caused a widespread outbreak of fungal meningitis.

Multiple reports Wednesday morning have federal authorities with warrants for the arrest of NECC leaders.

Framingham Patch will update when we have details on the arrests. Reports authorities were in Wrentham, Southborough, and Dedham this morning.

Several law enforcement vehicles were seen leaving the Wrentham estate of New England Compounding Center owner Barry Cadden before sunrise, reported WBZ-TV.

Framingham Patch readers reported multiple police at the Southborough home of co-owner Greg Conigliaro and his wife Carla Wednesday morning.

In May 2014, a $100 million settlement for the victims of a deadly fungal meningitis outbreak was filed in U.S. Bankruptcy Court in Boston.

In 2012, the owners of New England Compounding Center filed for bankruptcy.

Under the settlement agreement, the owners would personally be responsible to contribute $50 million to the settlement fund. Insurers would be expected to contribute another $25 million.

According to court documents, the family members, who served as the New England Compounding Center’s directors paid themselves more than $16 million with the largest payout to the the specialty pharmacy’s majority shareholder, Carla Conigliaro - $8.7 million.

Cadden, the company’s chief pharmacist, received about $3.2 million in 2012, filings show.

His wife, Lisa Cadden, received about $2.8 million.

Greg Conigliaro, a recycling entrepreneur received about $1.6 million.

Carla Conigliaro owns 55 percent of the company stock. Gregory, owns 10 percent. He also is treasurer and vice president of NECC.

Barry Cadden and his wife, Lisa Cadden, each own 17.5 percent. Lisa Cadden is Gregory Conigliaro’s sister.