Drug Enforcement Administration


Keith Martin (Acting), Special Agent in Charge

July 28, 2014

Contact: Brian McNeal

Phone Number: (571) 362-1498

Three Eastern Kentucky Treatment Centers And Two Pharmacies Pay Over $1 Million To U.S. Government For Violations Of Controlled Substance Act

DEA audit revealed that the facilities improperly documented dispensing of controlled substances and maintained incomplete and inaccurate record

PIKEVILLE, Ky. - The U.S. Attorney’s Office and the U.S. Drug Enforcement (DEA) jointly announced that the federal government has reached settlements, worth over one million dollars, with multiple Eastern Kentucky treatment centers and two pharmacies to settle allegations that they failed to maintain accurate records of their controlled substances.

The Perry County Treatment Center, LLC; Pike County Treatment Center, LLC and Paintsville Professional Associates, LLC, agreed to pay a total of $525,000 to settle claims that they violated the Controlled Substance Act.  Additionally, MedZone Pharmacy and Neighborhood Pharmacy, both in Prestonsburg, Ky., each agreed to pay $250,000 for similar violations.

The government contends that a DEA audit of the treatment centers and pharmacy revealed shortages and overages of prescription drugs and incomplete and inaccurate records.   DEA agents found the facilities improperly documented the type of drug, dosage strength, the name of drugs, or the amount of the drugs they were dispensing. 

Under federal law, the DEA supplies medical professionals with a registration number that authorizes them to possess, prescribe and dispense certain controlled substances, such as Oxycodone, Hydrocodone, Lortab and others.   The DEA also has the authority to perform biennial audits and inspections to ensure that clinics, pharmacies and treatment centers properly document things such as, the amount of controlled substances dispensed, discarded, and received.   

The facilities involved in the settlements surrendered their DEA registration number and therefore they no longer have the authority to possess or dispense pills. 

The investigation was conducted by the DEA.  Assistant U.S. Attorney Andrew Sparks litigated this case on behalf of the federal government.

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