Cedar Park woman sentenced for multi-million-dollar scheme that defrauded cat owners
Cedar Park woman's multi-million-dollar cat scheme
A Cedar Park woman pleaded guilty after a multi-million-dollar scheme that defrauded cat owners nationwide over several years.
CEDAR PARK, Texas - A Cedar Park woman pleaded guilty to a federal charge and was sentenced on Monday.
She must serve one year of probation and forfeit roughly $4 million in assets.
The multi-million-dollar scheme defrauded cat owners nationwide over several years. Nicole Randall, 37, of Cedar Park carried out the online operation.
What happened?
The backstory:
The person FOX 7 Austin spoke with asked to stay anonymous, but they knew Randall through volunteering at Austin Pets Alive!.
"Nicole Randall was my friend. To understand who she is, how she got involved with the black market FIP, and what happened, you have to understand her story. I met Nicole in 2018. She was looking to adopt. She found the perfect kitten, whose name was Baconator. She took him home, and after two months, he got sick."
The source said a veterinarian diagnosed the new kitten with Feline Infectious Peritonitis (FIP). It is a deadly disease in cats that has long been considered incurable.
"Nicole went to the Internet, and she came across a drug called GS-441524."
GS can be used to treat the deadly disease, but it was not legal in the United States at the time. Within a few weeks, Baconator died from FIP.
"Nicole and several others started the group FIP Warriors, a group of pet owners who were sourcing GS through the Chinese black market."
The Facebook group currently has 82.9K members, including a former Austinite, who has had two cats diagnosed with the disease.
"Admins of the FIP Warriors group sought to figure out which products being offered in this space were actually safe and effective."
The page is a space that people turn to in a time of desperation. They are cat owners seeking answers, support, and a lifeline for their dying animal.
"Nicole saw an opportunity to make money because pet owners will spend thousands of dollars to save the life of their cat."
Randall used fake names on the Chinese black market to purchase and smuggle illegal medication into the country, disguising it as pet shampoo, cosmetics, face masks, and other beauty products. She collected the money through various mobile payment apps, including Venmo, CashApp, and PayPal.
"We were shocked to learn how high the profits were. Especially because so many families would refinance their houses or even sell their plasma to afford treatment."
How was Randall caught?
The backstory:
An undercover investigation was launched in the summer of 2021. A year later, agents executed a search warrant at her Cedar Park home, where they found around 30 boxes containing the illegal drug.
According to the DOJ, they believe she distributed 58,460 liquid vials and 236,836 pills of GS-441524 over two years.
"We did not learn how much Nicole made until the raid."
As part of the plea deal Randall took, she had to give up four properties, a Tesla, and 10 financial accounts totaling roughly $4 million.
Randall was charged with criminal information with introducing an adulterated drug into interstate commerce.
More treatments for the deadly disease
What they're saying:
As for the legality of GS, it has since changed.
"Treatment is more accessible, it's more affordable, it's safer. And veterinarians can actually be the ones in the driver's seat prescribing and treating their patients."
Technically, the treatment option is still not legally available in the U.S. However, a veterinarian can now prescribe and compound it in certain circumstances.
The Source: Information from interviews conducted by FOX 7 Austin's Katie Pratt