The managing pharmacist of a family-owned food and drug store in Perryville, Arkansas sold tens of thousands of Schedule II, III and IV pills and other pharmaceuticals from the pharmacy shelves after hours. To account for the missing pills, the pharmacist forged prescriptions and also filled fraudulent prescriptions presented by customers. Medicare Part D was falsely billed for patient claims, and cash deposits were structured to avoid bank reporting requirements.
The case grew out of a year-long investigation by the DEA and Arkansas State Police under Operation Pilluted, a regional effort targeting the largest sources of diverted pharmaceuticals. A pharmacy audit showed more than 49,000 oxycodone pills and more than 72,000 hydrocodone pills missing. The DEA Administrator issued an Immediate Suspension Order against the pharmacy as an imminent danger to public health and safety, and after an administrative hearing its DEA registration was permanently revoked on January 26, 2015.
On May 6, 2015 a grand jury returned a superseding indictment against the pharmacist and 27 others. The pharmacist pleaded guilty on October 5, 2016 to conspiracy to dispense hydrocodone without an effective prescription, health care fraud and structuring. Of the 28 defendants, 23 pleaded guilty and charges against five were dismissed. The pharmacist's father and co-owner pleaded guilty to misprision of a felony and received two years' probation and a $50,000 fine.
In September 2017 a U.S. District Judge sentenced the pharmacist to the statutory maximum on all three counts, concurrent 60- and 120-month terms, and entered an $850,000 monetary judgment representing unlawful proceeds, including $54,000 in restitution to Medicare and Medicaid.