What Happened
Jose Alzadon, M.D., 62, of Paintsville, Kentucky, medical director of Kentucky Addiction Centers, was sentenced in February 2026 to 60 months in prison. He was convicted at trial in March 2025 with CEO Michael Bregenzer and billing manager Barbie Vanhoose of health care fraud conspiracy and conspiracy to distribute controlled substances using another person's registration number. Evidence showed they used Alzadon's father's DEA registration number and electronic prescribing token to prescribe Suboxone for patients the father had not seen. Bregenzer received 48 months and Vanhoose 24 months. All three were ordered to pay restitution of $812,881.09.
“conspiracy to distribute controlled substances using the registration number of another person”
Related Guidance
- 15 Red Flags of Drug Diversion — Behavioral and transactional indicators of diversion.
- Investigation Playbook — How to investigate suspected diversion inside an organization.