I was curious about your question so just skimmed through the court filing, which you can read here: William Burgamy affidavit.pdf
Hopefully @Kak can answer your question since the court documents do not.
But some tidbits that stood out:
"A review of the Empire NEVERPRESSEDRX account on April 3, 2020 revealed that the account had 2543 sales, a vendor level of 7 and a trust level of 7 with 99.95% positive reviews."
"As noted above, on January 6, 2020, the FBI undercover employee sent 0.02400203 Bitcoin (at the time worth approximately $190 USD worth of Bitcoin) to the NPRX payment address in order to pay for the above-described 20 Percocet® pills."
According to a quick internet search, Percocet sells for $6 with prescription. We will use the prescription price as the cost since it's also stated in court documents that he was hitting limits with his own customers.
He was reselling for $9 each. ($190 - $10 for shipping / 20 = $9).
But let's assume he was selling at 4x the prescription price (even though above he only sold for 1.5x on the given transaction.
And let's assume $180 revenue per order.
$180 * 2,543 transactions = $457,740 * 75% margin = $343,305 gross profit. Split between him and the other guy, so $171,652.50 for himself. This is assuming that he used normal markups.
If he used the 50% markups to get the account going:
$180 * 2,543 transactions = $457,740 * 33.3% margin = $152,578 gross profit. $76,289 for Hyrum.
If you annualize the earnings, he was bring in between $114k and $256k a year off of this hustle.
Is that a lot of money? Maybe. Is it a lot of money for the amount of risk he took on and selling his soul? A definite NO.
To put things into perspective...
Pharmacies sell at a 2-5x multiple:
Here's one that's for roughly 2x.
But let's say it's 4x to purchase a pharmacy that is well established with sufficient barriers to entry.
With a $200k down and good credit, he could have gotten an SBA loan for $2MM. 8% interest, so:
$500k annual income
(160k) interest payment
= $340k annual profit.
His payout was a lot higher to just acquire an existing pharmacy. On top of that, the risk was a lot lower (going to jail vs going bankrupt).
If he went the latter route, he would've made more and saved his soul.
But unfortunately he was greedy and stupid, so now he's getting locked up for likely decades.
Greed and unethical business practice doesn't pay.
@MJ DeMarco @Vigilante - please let me know if it makes sense to turn this post into its own thread. I understand that it's bad for the forum to draw attention to this idiot, but maybe if we take out Hyrum's details, the quick analysis above can save someone down the line from making the same boneheaded unethical mistake. Crime doesn't pay.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
