March 18, 2014
Contact: Special Agent Cheryl Davis
Phone Number: (313) 234-4000
Owner Of Pain Clinics In Kentucky Receives 20 Year Federal Prison Sentence For Multiple Convictions Related To Illegal Distribution Of Controlled Substance Prescription Drugs
Contact: Public Information Officer
Number: (313) 234-4310
LEXINGTON, Ky. - The former owner of pain clinics in Georgetown, Ky., and Dry Ridge, Ky., that illegally dispensed controlled substance prescription drugs to thousands of patients, was sentenced today to 20 years in federal prison. U.S. District Judge Karen Caldwell sentenced Ernest William Singleton for drug trafficking, money laundering, opening and maintaining a drug involved premise and conspiracy offenses.
Singleton and his corporations, Double D Holdings LLC, and S and R Medical Enterprises LLC, which owned Central Kentucky Bariatric and Pain Management, Central Kentucky Family Pharmacy of Georgetown, and the Grant County Wellness Center in Dry Ridge, were all convicted by a federal jury in June 2013.
According to evidence presented at trial, from October 2010 through February 2013, and under Singleton's direction, doctors at the clinics prescribed large quantities of oxycodone and Diazepam outside the scope of professional practice and without a legitimate medical purpose. Specifically, the evidence established that Singleton oversaw the daily operations of the clinics, influenced doctors to overprescribe drugs to patients, and pressured them to see as many patients as possible.
Witnesses testified that, at Singleton's direction, one of the doctors saw more than 90 patients in a day and another doctor visited with some patients for as little as three minutes before prescribing medication. Witnesses also testified that when some doctors complained to Singleton about the volume of patients, he instructed them not to reduce their patient load.
Other evidence established that the pain clinics operated on a cash only basis and did not accept insurance. Patients paid approximately $250 on the first visit and $300 on subsequent visits. Investigators estimate that approximately 5,000 patients visited the clinics during the course of the conspiracy.
Some of the doctors who testified at trial confirmed that they could not provide adequate medical care under Singleton's guidelines. Two of the doctors employed by Singleton, Lea Marlow and Gregory White, pled guilty to criminal charges last year and are currently serving prison terms.
The jury also found that Singleton engaged in money laundering, by using the drug proceeds to purchase real estate, a boat, and farm equipment, among other items. He also used the proceeds to build a home. Singleton has forfeited numerous items that either facilitated the crimes or were purchased with proceeds from his criminal offenses, including bank accounts consisting of more than $427,000, more than 20 firearms, more than 40 pieces of farm equipment, vehicles, and livestock.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; U.S. Drug Enforcement (DEA) Acting Special Agent in Charge James Van Allen; Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division; Jack Conway, Kentucky Attorney General; and Rodney Brewer, Commissioner of Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA, IRS Criminal Investigation Division, the Kentucky Attorney General's Office and Kentucky State Police. Assistant U.S. Attorney Ron Walker, former Assistant U.S. Attorney Patrick H. Molloy, and Special Assistant U.S. Attorney Shawna Kincer, the Executive Director of Special Prosecutions with the Kentucky Attorney General's Office, prosecuted the case.