Pharmacists At West Michigan Pharmacy Sentenced To Stiff Fines After Pleading Guilty To Felony Misbranding Of Controlled Substance Prescription Drugs

November 15, 2013
Contact: Public Information Officer
Number: (313) 234-4310

GRAND RAPIDS, Mich. - James D. Orr, 76, and Eugene A. Biegert, 69, of Grand Rapids, Michigan, and Thomas N. VerHage, 68, of Kentwood, Michigan were sentenced by U.S. District Judge Janet T. Neff to substantial fines following their guilty pleas to charges of the felony misbranding of drugs while working as staff pharmacists at Kentwood Pharmacy. The judge imposed monetary penalties exceeding the fine range recommended by federal sentencing guidelines: a fine of $30,000 for VerHage and Orr and $15,000 for Biegert.

In addition, as a consequence of the convictions, U.S. Department of Health and Human (HHS) will exclude the defendants from participation in any Federal Health Care (Medicaid and Medicare) and the U.S. Food and Drug (FDA) will debar them from working for anyone with an approved or pending drug product application.

During their earlier plea hearings, the pharmacists acknowledged that they were aware that Kentwood Pharmacy restocked drugs that were returned from nursing homes and adult foster care homes. The defendants admitted that receiving such returned drugs and placing the returned drugs back on the stock shelves resulted in the drugs being placed into stock bottles and other containers which did not maintain the accurate lot numbers and expiration dates for the drugs. The defendants admitted that, in their position as staff pharmacists, they approved prescriptions that were prepared and dispensed to foster care and nursing homes. They acknowledged that some of the prescriptions contained drugs that they knew were returned to stock in violation of state and federal laws, including drugs that had been misbranded.

At the sentencing hearings, Judge Neff found that the staff pharmacists created a substantial risk of harm by approving the illegal restocking and re-distribution of prescription drugs. The judge described the scheme to collect unused drugs from nursing homes and adult foster homes and then re-dispense these drugs as "clever, illegal, and potentially lethal." She explained that the substantial fines were necessary to deter others and to punish these defendants for their failure to exercise their professional responsibilities as pharmacists and stop or report the illegal practices at Kentwood Pharmacy.

U.S. Attorney Patrick Miles said, "The public must be able to rely on pharmacists who have both professional and statutory duties to ensure that pharmacies operate in compliance with federal and state laws regulating the handling, packaging, and distribution of drugs. As this case demonstrates, even semi-retired pharmacists who work part-time are expected to fulfill their statutory and professional obligations. If such professionals fail to comply with state and federal laws, they should expect to be prosecuted and face loss of their license, substantial financial penalties, and the possibility of imprisonment for violations of the public's trust."

The investigation of this matter involves the U.S. Drug Enforcement (DEA), FDA, FBI, HHS and IRS. Assistant U.S. Attorney Ray Beckering is the prosecutor.