JUSTICE DEPARTMENT CHARGES FORMER FDA COMMISSIONER WITH FRAUD

The Department of Justice (DOJ) Oct. 16 charged former FDA Commissioner Lester Crawford with fraud for allegedly lying to HHS about his continued ownership of stocks in companies that the agency regulates.

Crawford, the last confirmed FDA commissioner, abruptly resigned in September 2005, two months after being confirmed. Since his resignation, allegations of conflict of interest have dogged Crawford.

The U.S. attorney claims that Crawford did indeed have a conflict through his ownership of stock in several companies that the agency regulates -- including Embrex, Sysco, Kimberly-Clark and PepsiCo -- while he was an FDA employee.

Crawford also lied to HHS ethics officials and the Senate, telling them that he had sold his interest in these companies, the DOJ alleged. Crawford "knowingly made and delivered as true writings containing statements that [he] knew to be materially false," the DOJ said.

This conflict was a particular problem as Crawford chaired the Obesity Working Group, which issued a report on various products manufactured by companies, including PepsiCo. He also testified before Congress on the group's findings. Crawford "did participate personally and substantially as a government officer and employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation and otherwise in an investigation and other particular matter in which . . . he and his spouse had a financial interest."

According to press reports, Crawford will plead guilty to these charges.