Illegal Pharmacy Operator Sentenced to Federal Prison

Distributed Hundreds of Thousands of Drugs Without Proper Prescription

A man who illegally sold thousands of doses of controlled substances and misbranded prescription drugs was sentenced today to 15 months in federal prison, fined and ordered to forfeit over $500,000 in drug proceeds.

Jon Stidham, age 57, from McClelland, Iowa, received the prison term after a January 5, 2022 guilty plea to one count of conspiracy to deliver, distribute or dispense methyltestosterone, a Schedule III controlled substance, by means of the Internet without a valid prescription and without complying with federal and Iowa licensing requirements, and one count of conspiracy to introduce misbranded drugs into interstate commerce with intent to defraud or mislead and to commit mail fraud.

In a plea agreement, Stidham admitted that he operated a business called Kennel Supply, LLC. Kennel Supply provided a variety of items used for the operation of kennels and the care of farm animals at a brick-and-mortar location. On the Internet, Kennel Supply sold controlled substances and non-controlled prescription drugs that require prescriptions to lawfully dispense to the ultimate user. From 2015 through October 12, 2018, Stidham distributed and sold over 300,000 doses of methyltestosterone, a controlled substance, without valid prescriptions, profiting $324,303. During that same time-period, Stidham illegally distributed over 50 types of misbranded prescription drugs without a valid prescription or authorization, and illegally profited $203,207.