News Release
Date: February 01, 2012
Contact: Rich Isaacson
Number: (313) 234-4310

United States Settles Civil Claims Against Kentucky Pharmacy
Mayfair Pharmacy, Inc. to pay $75,000 for violations of the U.S. Controlled Substances Act
-Over 140,000 hydrocodone tablets unaccounted for

LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, today announced the settlement of civil claims by the United States in the amount of $75,000 against
Mayfair Pharmacy, Inc. of Owensboro, Kentucky.

The United States alleges between June 10, 2009, and June 9, 2011, Mayfair Pharmacy could not account for the whereabouts of various hydrocodone products. An accountability audit by the Drug Enforcement Administration (DEA) revealed a shortage of nearly 140,000 hydrocodone tablets. The DEA inspection concluded that Mayfair was in violation of the Uniform Controlled Substances Act for, among other things, the following conduct: failure to maintain records of controlled substances received or dispensed; failure to maintain paper prescriptions of controlled substances in Schedules III through V; failure to notify the DEA of thefts; failure to prevent further diversion by not providing effective
controls and procedures to guard against theft and diversion of controlled substances; and permitting approximately 57 instances of incorrect or missing information in Mayfair Pharmacy's execution of DEA Forms 222.

The DEA issued notice of immediate suspension of Mayfair Pharmacy’s Certificate of Registration on August 29, 2011, finding that Mayfair Pharmacy constituted an imminent danger to the public health and safety. A hearing on the immediate suspension was scheduled to take place on October 18,
2011, however, Mayfair Pharmacy voluntarily surrendered its registration before the hearing.

According to the Owensboro, Kentucky, Police Department and the Louisville, Kentucky, Metro
Police Department (LMPD), Mayfair Pharmacy was the victim of an employee theft. Beginning in
2010, Owensboro Police began investigating tips that an employee of Mayfair Pharmacy was stealing controlled substances. Mayfair Pharmacy was alerted by police, but allegedly failed to take measures to prevent further diversion of controlled substances. As part of the investigation, LMPD arrested the husband of a Mayfair Pharmacy employee and charged him with unlawful trafficking of a controlled substance. The employee was also arrested.

The settlement amount shall be paid by electronic funds transfer no later than February 10, 2012.

This settlement agreement is neither an admission of liability by Mayfair Pharmacy, Inc., nor a concession by the United States that its claims are not well founded.

This case was prosecuted by Assistant United States Attorney Benjamin S. Schecter of the Western District of Kentucky, and was investigated by the DEA and the Owensboro, Kentucky Police Department.