Two brothers were arrested on federal drug trafficking and money laundering charges that allege they used a bogus pharmacy to obtain and distribute large quantities of prescription narcotics, including OxyContin, to black-market customers. The two men charged in a 40-count indictment are Berry Kabov, 44, and his brother, 32 year old Dalibor Kabov (also known as “Dabo”). The indictment also names Global Compounding, LLC, a storefront pharmacy off Santa Monica Boulevard in Brentwood, as a defendant.

Authorities allege that the Kabov brothers operated Global Compounding as a bogus pharmacy to facilitate the acquisition of prescription drugs from the wholesale market. The DEA claims that the Kabov brothers purchased massive quantities of drugs, including nearly 100,000 in oxycodone pills, as well as tens of thousands of pills of hydrocodone (commonly sold under the brand name Vicodin) and hydromorphone (commonly sold under the brand name Dilaudid).

The DEA claims that Global Compounding was the top purchaser of oxycodone among all pharmacies in the Los Angeles area in 2014, and that it ordered three times more oxycodone than the second-largest purchaser. An inspection at Global Compounding by the California Board of Pharmacy in January 2014 that led investigators to conclude “that Global Compounding is not a legitimate pharmacy and in fact is a façade for a drug trafficking operation.”

A search warrant details how investigators seized parcels containing thousands of hidden oxycodone pills that the Kabov brothers allegedly attempted to ship to customers. The customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California. During recorded calls with an informant Berry Kabov explained that he could sell oxycodone in New York for as much as $50 per pill.

The indictment also alleges that the brothers engaged in money laundering and the structuring of cash transactions to avoid federal reporting requirements. The search warrant identifies more than $1.5 million in structured cash deposits into multiple bank accounts controlled by the Kabov brothers. The affidavit details extravagant expenditures, including private jets from the Los Angeles area to Las Vegas and other luxury items. At the same time federal prosecutors say, the brothers were telling the IRS that the business was making little in profits or losing money. “They claimed to be paupers when they were living like kings,” said Assistant U.S. Atty. Ryan Weinstein.