A member of the University of Wisconsin Foundation Board of Directors appeared in federal court last week to answer to charges of importing and selling counterfeit prescription drugs, officials said.

Marla Ahlgrimm appeared in federal court in the Eastern District of New York, pleading not guilty to the charges, said a spokesperson for the U.S. Attorney’s Office in an e-mail to The Badger Herald.

The complaint filed said Ahlgrimm and Balbir Bhogal are charged with illegally importing and subsequently selling counterfeit pharmaceuticals, such as Viagra and Oxycodone.

Following her arraignment, Ahlgrimm was released on a $150,000 bond under the condition she does not obtain a new passport, has no contact with Bhogal and travels within the country for business only, Sweeney said.

Ahlgrimm is the founder and CEO of Women’s Health America, a Madison-based company focused on women’s health, specifically women’s hormones, the complaint said.

In addition, the complaint listed three other affiliates of WHA – Madison Pharmacy Associates LLC, Cyclin Pharmaceuticals Inc. and CP International LLC.

Madison Pharmacy Associates is licensed by the Drug Enforcement Administration as a retail pharmacy, mail order pharmacy and optometrist in 16 states, according to the complaint.

Cyclin Pharmaceuticals holds a license from the DEA authorizing it as a distributor of Class III, IV and V controlled substances. The complaint said no information is known about CP International.

Despite the authorization by the DEA, WHA, Madison Pharmacy Associates and Cyclin Pharmaceuticals are not licensed to import pharmaceuticals.

Authorities became aware of the importation violation through a confidential informant who ran an Internet pharmacy. The informant purchased prescription drugs from Ahlgrimm to supply his business, the complaint said.

Ahlgrimm specifically told the source she could not obtain the amount of drugs in the United States, according to the complaint, but knew Bhogal could obtain the amount using ties to manufacturing facilities in India.

The informant received the pills directly from India. They were “shipped in loose form, some of them broken, without labels identifying their foreign origin, contents or manufacturer,” the complaint said.

Bhogal, who is listed as the CEO and director of the Madison-based company Nutragen, Inc., also sold controlled substances and counterfeit pharmaceuticals.

A second confidential source purchased five packages from Bhogal, according to the complaint.

Tests conducted by the Food and Drug Administration on all five packages proved all were counterfeit, the complaint said, either by not having enough of a certain ingredient to be effective or simply by not being the drug advertised.

Ahlgrimm is involved through one of the packages, which the complaint said was sent from “Cyclin Pharma” and listed the same address as WHA and Cyclin Pharmaceuticals.

UW Foundation President Sandy Wilcox said his organization is not involved in the case and is conducting business as usual.

In addition, Ahlgrimm is still a member of the Board of Directors, despite the charges she faces in New York, Wilcox said.

“The Board of Directors meets on Oct. 8 and as far as I know she is planning to attend,” he said.