Diversion Case Studies

Utah health system paid $1 million to resolve clinic drug diversion allegations

The U.S. Attorney's Office for the District of Utah announced that Intermountain Healthcare agreed to pay $1 million to resolve allegations that lax controls let a former employee divert controlled substances for personal use. The government contended that from September 2007 through March 2015 a former medical assistant used a physician's DEA registration number to issue prescriptions to herself and two family members, which the clinic pharmacy filled. The settlement is not an admission of liability, and the health system implemented a corrective action plan.

Orlando pharmacist sentenced to more than 24 years for dispensing oxycodone on fraudulent and pill-mill prescriptions

A licensed Orlando pharmacist was found guilty by a federal jury in March 2016 of conspiring to distribute and dispense oxycodone outside the usual course of professional practice and without a legitimate medical purpose. Evidence presented at trial showed the pharmacy dispensed more than 500,000 oxycodone pills during the conspiracy and collected over $1.3 million from illegal sales, accepting fraudulent prescriptions and prescriptions from pill-mill doctors from patients who traveled long distances in groups. The pharmacist was sentenced to 24 years and 4 months in federal prison.

Former hospital nurse in Douglas charged with stealing and diluting hydromorphone and meperidine

Douglas, WY

A former registered nurse at Memorial Hospital of Converse County in Douglas, Wyoming, pleaded not guilty in federal court to four counts alleging tampering with consumer products and acquiring Schedule II controlled substances. The indictment alleged the nurse removed hydromorphone (Dilaudid) and meperidine (Demerol) from vials or containers and replaced the drugs with saline solution, including alleged tampering with 58 vials of hydromorphone and one container of meperidine. The hospital placed the nurse on administrative leave and the Wyoming State Board of Nursing suspended the license; a hospital spokesman said the former nurse admitted to stealing hydromorphone and had been cooperative. The case came to light when pharmacy staff found irregularities in access to hydromorphone through the hospital's automated medication dispensing system.

Palos Park physician's medical and controlled substance licenses temporarily suspended over prescribing

The Illinois Department of Financial and Professional Regulation reported in its October 2017 enforcement report that a Palos Park physician's medical license and controlled substance license were temporarily suspended. The stated grounds included alleged inappropriate controlled substance prescribing to patients of his private practice, failure to comply with a Department subpoena and falsification of his 2017 renewal application. A temporary suspension is an interim measure, not a final finding.

Schaumburg psychiatrist temporarily suspended over boundary violations and controlled substance prescribing

The Illinois Department of Financial and Professional Regulation's October 2017 enforcement report lists a Schaumburg physician whose medical license and controlled substance license were temporarily suspended. The Department cited alleged boundary violations with an underage patient of his psychiatric practice and alleged inappropriate controlled substance prescribing to patients of his private practice. A temporary suspension is an interim measure and not a final finding.

Perryville pharmacy owner sentenced to 10 years for selling opioids off pharmacy shelves and forging prescriptions

The managing pharmacist and co-owner of a Perryville, Arkansas pharmacy pleaded guilty in October 2016 to conspiracy to dispense hydrocodone without an effective prescription, health care fraud and structuring cash deposits. A pharmacy audit found more than 49,000 oxycodone and more than 72,000 hydrocodone pills missing; the pharmacist sold pills from the shelves after hours, forged prescriptions to cover the shortages and filled fraudulent prescriptions from customers. In September 2017 a federal judge imposed the statutory maximum of 120 months and an $850,000 monetary judgment, and the pharmacy's DEA registration had been permanently revoked in January 2015.

Three former Trinity Hospital hospice nurses accused of stealing drugs and endangering patients

Minot, ND

Three former nurses for Trinity Hospital's Home Health and Hospice program were accused of stealing drugs prescribed for hospice patients between December 2012 and September 2014. Two of the nurses were also charged with endangering a patient by diluting medication or giving morphine instead of prescribed hydromorphine. Those two were reported to the North Dakota Board of Nursing in 2014 and voluntarily surrendered their licenses after admitting to the board's allegations. The third nurse was arrested and charged with theft of property, and police were seeking the other two.

Little Rock VA hospital employee pleads guilty in conspiracy to steal and distribute opioids

Three employees of the Veterans Affairs hospital in Little Rock were indicted in February 2017 on federal charges of conspiring to steal and distribute prescription medication, including opioids. One of the three, a former technician, pleaded guilty in federal court in late September 2017.

Nevada grocery-pharmacy technician accused of diverting hydrocodone, amphetamine and oxycodone tablets from patient bottles

The Nevada State Board of Pharmacy filed a Notice of Intended Action and Accusation in August 2017 against a registered pharmaceutical technician who had been terminated from a grocery-chain pharmacy. The accusation alleges that a June 30, 2017 employer drug screen returned positive for several substances, and that during a follow-up interview the technician acknowledged a drug problem and diverting hydrocodone, amphetamine and oxycodone products by removing two to three tablets from patients' bottles during the filling process. These are allegations in a charging document; the document does not record the Board's final decision.

South Dakota medication aide charged with hydrocodone possession in 2017 health care fraud sweep

The South Dakota Attorney General announced in July 2017 that its Medicaid Fraud Control Unit had worked with other law enforcement agencies on two cases involving alleged drug diversion by medication aides in Yankton County and Turner County, as part of a nationwide health care fraud sweep. In one of the cases, a medication aide was charged with one count of possession of a controlled substance, hydrocodone, a class 5 felony. The release lists the charge only and reports no plea or outcome.

South Dakota medication aide charged with ingesting a substance to become intoxicated in 2017 health care fraud sweep

As part of a July 2017 nationwide health care fraud sweep, the South Dakota Attorney General's Medicaid Fraud Control Unit worked with other agencies on two cases of alleged drug diversion by medication aides in Yankton County and Turner County. In one of the cases, a medication aide was charged with one count of ingesting a substance other than alcohol to become intoxicated, a class 1 misdemeanor. The release names the charge only and does not identify the substance, the workplace, or any plea or outcome.

Ogden hospital emergency room nurse charged with diverting morphine and dilaudid and tampering with vials, exposing patients to hepatitis C

Ogden, UT

A former registered nurse was federally indicted in July 2017 on eight counts of tampering with a consumer product and eight counts of fraudulently obtaining a controlled substance. Prosecutors allege the nurse diverted morphine and the narcotic dilaudid, injected herself with the drugs, and then administered those drugs to others, and that seven patients were infected with a hepatitis C strain the nurse carries; health officials estimated as many as 7,200 patients may have been exposed at two hospitals. Charging records state the nurse surrendered a nursing license in November 2015, and state licensing records state the nurse admitted to taking drugs from an employer while working at both hospitals.

Physician allegedly took back patients' prescribed controlled substances for personal use and falsified records to justify prescribing

Moriarty, NM

A New Mexico physician's medical license was summarily suspended by the state medical board based on allegations that he resumed unlawful personal use of opioid drugs, evaded required drug screenings, diverted controlled substances he had prescribed to patients back from those patients for his own use, and falsified medical records to justify the prescribing. Because DEA registration requires state authority to dispense controlled substances, the DEA revoked his registration and denied any pending applications; the underlying board allegations had not yet been adjudicated at a hearing.

Physician accused of taking back prescribed opioids from patients for personal use and falsifying records

Moriarty, NM

A state medical board alleged that a physician resumed personal use of opioid drugs, prescribed large amounts of controlled substances to patients without adequate medical justification, and diverted controlled substances he had prescribed back from patients for his own use. The board also alleged he falsified medical records to justify the prescribing. These allegations were contested by the physician and had not been adjudicated; DEA instead revoked his registration because his state medical license was suspended, which independently barred him from handling controlled substances in New Mexico.

Massachusetts Paramedic Pleads Guilty to Tampering with Ambulance Fentanyl

Rowley, Massachusetts

Joseph V. Amello, a paramedic for a Massachusetts ambulance company, stole more than 650 5-milliliter vials of fentanyl from ambulance stock between November 2014 and August 2015 for his own use. Beginning around July 1, 2015, he also removed fentanyl from vials intended for ambulance patients and replaced it with saline, putting patients at risk of receiving no pain relief during emergencies. Amello pleaded guilty on June 22, 2017, to acquiring a controlled substance by deception, fraud, and forgery, and to tampering with a consumer product, and was sentenced in November 2017 to 30 months in federal prison and three years of supervised release.

Registered nurse accused of diverting hydromorphone at Memorial Hospital of Converse County by replacing it with saline

Douglas, WY

A registered nurse at Memorial Hospital of Converse County was placed on administrative leave and had their nursing license summarily suspended after hospital pharmacy staff discovered irregularities in access to Dilaudid/hydromorphone in the automated medication dispensing system. According to hospital officials, the nurse allegedly drew hydromorphone from vials and refilled them with saline, and also tampered with containers of Demerol and fentanyl. A hospital representative said the nurse admitted to stealing hydromorphone; investigations by state boards and local authorities were underway and no criminal charges had been filed at that point.

Wayne hospital pharmacy technician indicted for stealing fentanyl from operating room dispensers

A former pharmacy technician at a Wayne, New Jersey hospital was indicted on charges of theft and drug tampering. Authorities allege he removed fentanyl from automated dispensing cabinets in operating rooms, refilled the vials with a colorless solution, and then returned the vials to the hospital pharmacy claiming they were defective. He is no longer employed at the hospital and reportedly surrendered his pharmacy credential after the charges were filed; the charges are allegations that have not been proven in court.

Metro Jackson Hospital Nurse Charged With Embezzling Opioids

A registered nurse at a hospital in the Jackson, Mississippi metro area was arrested and charged with embezzlement after a joint investigation by the Mississippi Bureau of Narcotics' pharmaceutical diversion unit and the DEA found he had allegedly diverted the Schedule II opioids Dilaudid and morphine. He surrendered his nursing license as a result of the charge. Investigators described the arrest as part of a broader state crackdown on pharmaceutical diversion by licensed professionals.

Scottsdale Surgery Center Nurse Surrenders License After Diverting Fentanyl and Dilaudid

Scottsdale, AZ

Danielle Lynn Langham, a registered nurse at a Scottsdale, Arizona surgery center, tampered with vials of fentanyl and hydromorphone (Dilaudid) between August 2015 and May 2016, diverting the narcotics for her own use and refilling the vials with sterile saline to avoid detection. She surrendered her Arizona nursing license on May 2, 2017. The Arizona Attorney General's Office later obtained a state grand jury indictment charging Langham with 23 drug-diversion related offenses, announced in June 2018.

Alaska registered nurse reprimanded for diverting narcotics from employer for personal use

The Alaska Board of Nursing ordered a public reprimand by consent agreement against a registered nurse for unprofessional conduct. The conduct involved the intentional misappropriation of various narcotics from her employer for personal use, in violation of AS 08.68.270(3)(7) and 12 AAC 44.770(8)(9)(22).

Registered nurse reprimanded for misappropriating narcotics from employer for personal use

The Alaska Board of Nursing ordered a public reprimand for a registered nurse's unprofessional conduct relating to the intentional misappropriation of various narcotics from the nurse's employer for personal use. The action was taken by consent agreement.

Hospital nurse accused of embezzling Dilaudid and morphine for diversion

Jackson, MS

A registered nurse who worked at a metro-area hospital was arrested and accused by the Mississippi Bureau of Narcotics of embezzling the Schedule II opioids Dilaudid and morphine. The nurse surrendered their nursing license following the arrest, and additional charges were said to be possible.

California respiratory care practitioner's license revoked after nursing board discipline for possessing controlled substances and false hospital records

The Respiratory Care Board of California revoked a respiratory care practitioner's license effective March 25, 2017, through a default decision and order. The action was based on discipline previously imposed by the California Board of Registered Nursing for obtaining or possessing a controlled substance without a prescription, using a controlled substance in a manner dangerous to self or others, and making false or grossly incorrect entries in a hospital record. The board summary does not identify the drug or the facility.

California respiratory care practitioner surrendered license after being found with four fentanyl syringes not needed for work

The Respiratory Care Board of California accepted a stipulated surrender of a respiratory care practitioner's license, effective March 23, 2017. The board's disciplinary summary states the practitioner committed acts of fraud, dishonesty or corruption by being in possession of four syringes of fentanyl that were not needed or used in his work, and notes a prior board disciplinary action. A stipulated surrender resolves the case without a contested hearing.

Wyoming pharmacy technician-in-training surrendered permit over controlled-substance diversion

A Wyoming pharmacy technician-in-training voluntarily surrendered her permit after being found to have diverted controlled substances, according to the Wyoming State Board of Pharmacy's disciplinary actions listed in its March 2017 newsletter. The board's published summary does not name the pharmacy, specify the drug involved, or describe how the diversion was detected.