The COVID pandemic notwithstanding, the Drug Enforcement Administration (DEA), Department of Justice and other federal and state agencies continue to actively pursue and prosecute pharmacies, pharmacists, doctors and others in the industry for violations of the Controlled Substance Act, False Claims Act and other controlled substance-related crimes.
I’ve compiled news reports on such cases from the last two months, confirming that prosecuting health care fraud and illegal distribution of controlled substances continues to be top of mind for law enforcement.
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(Maryland) A federal grand jury has indicted the owner / operator and two nurse practitioners of a purported pain management clinic for conspiracy to distribute and dispense oxycodone and for distribution and dispensing of oxycodone. The indictment seeks forfeiture of over $270K. Each faces a maximum sentence of 20 years for conspiracy and for each count of distribution and dispensing of controlled substances.
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(New Jersey) Pharmacist, pharmacy technician and co-defendants face charges including conspiracy, drug dealing, falsifying medical records and falsifying or tampering with records and theft when authorities recovered 167 falsified oxycodone prescriptions filled by a single pharmacy using prescription blanks stolen from hospitals.
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(Missouri) Pharmacist charged with numerous violations of the Controlled Substances Act and the False Claims Act after disregarding ample red flags of diversion. Pharmacist faces civil penalties of up to $67,627 for each unlawful prescription filled as well as treble damages and penalties for fraudulent prescriptions billed to Medicaid and Medicare, from $11,665 and up to $23,331 per fraudulent prescription.
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(Pennsylvania) Pharmacy and pharmacist face $2.9 million in civil penalties and damages under the Controlled Substances Act and False Claims Act along with the permanent surrender of their DEA registration for illegally dispensing opioids and other controlled substances and submitting false billing to Medicare.
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(Kentucky) Doctor and chiropractor/clinic owner charged with conspiracy to unlawfully distribute controlled substances and conspiracy to commit health care fraud along with several counts of health care fraud and illegal distribution. The indictment alleges the conspiracy contributed to the overdose deaths of at least six former patients. If convicted, both face up to 20 years imprisonment, fines up to $1 million, forfeit of the clinic and DEA license, among other penalties.
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(New York) Doctor indicted on charges of second-degree manslaughter after patient dies of an opioid overdose. Also charged with two counts of reckless endangerment, six counts of criminal sale of a controlled substance and healthcare fraud. If convicted, the doctor faces a maximum sentence of 5 to 15 years in prison.
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(Connecticut) Doctor pleaded guilty to distribution of controlled substances outside the scope of her professional practice and without a legitimate medical purpose while serving as a medical resident. She faces a maximum term of imprisonment of 20 years.
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(Pennsylvania) Former hospice nurse charged with filling prescriptions for patients and stealing controlled substances. She faces three felony counts of obtaining a controlled substance by misrepresentation, fraud, forgery, deceit and/or subterfuge; three misdemeanor counts of procuring a drug for self/other by using a false statement and a single count of theft by deception.
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(Florida) Doctor violated the Controlled Substances Act by writing and filling illegitimate prescriptions at inflated prices. The Department of Justice suit also claims the doctor may be responsible for as many as 16 drug overdose deaths.
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(Saipan) Doctor accused of unlawfully issuing controlled substance prescriptions. The complaint seeks civil penalties up to $67,627 for each of the 73 violations of the Controlled Substances Act, as well as an injunction against the doctor.
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(Kentucky) Dentist charged with illegally prescribing hydrocodone and oxycodone. The charge carries a potential penalty of no more than 20 years in prison, a $250,000 fine and 3 years of supervised release.
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(New York) Doctor charged with five counts of murder in the second degree and 11 counts of reckless endangerment in the first degree for prescription practices that led to the deaths of five patients between 2016 and 2018. If convicted of the top charge, the doctor faces a maximum of up to 25 years to life in prison.
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(Michigan) CEO of a group of pain clinics sentenced to 15 years in prison for developing and approving a corporate policy to administer unnecessary back injections to patients in exchange for prescriptions of over 6.6 million doses of medically unnecessary opioids. CEO also ordered to pay over $51 million in restitution to Medicare and forfeit property traceable to proceeds of the scheme, including over $11.5 million in real estate.
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(Connecticut) Pharmacy entered into a settlement agreement to resolve allegations that it violated the Controlled Substances Act amidst allegations of numerous failures relative to its record keeping, diversion control, timely reporting of theft or loss, inventory maintenance, and prescription dispensing protocols relative to controlled substances. Pharmacy to pay penalty of $16,800, plus interest and is required to hire an independent third-party pharmacy consultant.