Michigan pharmacists pleads guilty to federal drug trafficking and fraud charges
GRAND RAPIDS, Mich. — U.S. Attorney Andrew Birge announced today that John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, pled guilty to conspiracy to distribute prescription drug controlled substances, and conspiracy to commit healthcare fraud. Shedd and Tooley, who formerly owned Parks Drug Store in Albion, Michigan, face up to five years in federal prison for their crimes. As part of their guilty pleas, they also agreed to permanently surrender their DEA pharmacy registrations, forfeit $1.2 million to the United States, and pay $500,000 in restitution to the healthcare benefit programs they defrauded.
Shedd and Tooley admitted that they filled opioid prescriptions written by former Albion doctor Horace J. Davis, even though they knew those prescriptions had been written for no legitimate medical purpose. Dr. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they conspired to bill Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescriptions that were never written, and forged documents in connection with their false healthcare billings.
"Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country" said Special Agent in Charge of the Detroit Field Division Timothy Plancon.
"We are committed to fighting the opioid epidemic, and will prosecute the doctors, nurses, pharmacists, and other healthcare providers who feed the epidemic by writing and filling opioid prescriptions for no legitimate medical purpose," U.S. Attorney Birge said.
The investigation was conducted by the DEA, IRS Criminal Investigations, Albion Department of Public Safety and Calhoun County Sheriff’s Office. Assistant United States Attorney Clay Stiffler prosecuted the case.
