What Happened
Riverbird, LLC, a Portland, Maine mental health clinic, and two of its providers agreed to pay $20,000 to resolve civil Controlled Substances Act claims following a DEA diversion audit.
Investigators alleged that clinic practitioners knew about drug diversion by one of the clinic's own doctors but failed to report it to DEA as required. The government also alleged the clinic never conducted an initial controlled-substances inventory after a change in clinic ownership, and that it disposed of a Schedule IV drug using only a handwritten note instead of the required DEA disposal form.
The settlement, announced January 26, 2026, requires Riverbird and two of its providers to pay $20,000 and enter a three-year DEA Memorandum of Understanding, with no admission of liability.
What Went Wrong
Known diversion by a clinic physician went unreported to DEA, and basic recordkeeping obligations were not met around an ownership change. Key failures included:
- Practitioners who were aware of a colleague's diversion did not report it to DEA within the required timeframe.
- No initial controlled-substances inventory was conducted after the clinic changed ownership, leaving no accurate baseline for later reconciliation.
- A Schedule IV drug was disposed of using a handwritten note rather than the DEA-required disposal documentation.
- These gaps persisted until a DEA audit — not an internal compliance process — surfaced them.
How It Could Have Been Prevented
- Report known or suspected diversion by any practitioner or staff member to DEA immediately, regardless of internal relationships or reluctance to report a colleague.
- Conduct a full initial controlled-substances inventory whenever clinic ownership or registrant status changes, as required by 21 C.F.R. §1304.11.
- Use only DEA-approved forms and reverse-distributor processes to document controlled-substance destruction, never informal notes.
- Build a compliance calendar tied to ownership and registration changes so inventory and reporting obligations are not missed during transitions.
Related Guidance
- Diversion prevention checklist — Self-assessment covering recordkeeping, inventory, and DEA reporting obligations.
- Controlled Substance Inventory Requirements — Inventory triggers, including ownership changes, and recordkeeping practices that surface losses.
- 15 Red Flags of Drug Diversion — Behavioral and transactional indicators including unreported colleague diversion.