Diversion Case Studies

Houston Cash-Only Pharmacy Owner and Three Pharmacists Sentenced for Pill Mill Scheme

Houston, Texas

The owner and three staff pharmacists of a cash-only Houston pharmacy were sentenced for a multi-year conspiracy to unlawfully distribute more than half a million hydrocodone and oxycodone pills. The pharmacy owner, who was also pharmacist-in-charge, dispensed controlled substances to individuals sent by drug traffickers to pose as patients, using prescriptions that were often fraudulent and issued in the names of physicians whose identities had been stolen; the traffickers funded the pill purchases and resold the drugs on the street. The pharmacy continued operating despite repeated warnings from the Texas State Board of Pharmacy, the Texas Department of Public Safety, and the DEA. The owner was sentenced to 12 years in prison and ordered to forfeit $2.6 million, while the three co-conspirator pharmacists received sentences ranging from 20 months to 6 years along with individual forfeiture orders.

West Virginia Veterinarian Ordered to Pay $956,709 Over Unaccounted-For Opioids

Winfield, West Virginia

A Putnam County, West Virginia veterinarian and DEA registrant was hit with a $956,709 default judgment after federal investigators found she could not account for thousands of dosage units of oxycodone and hydrocodone/acetaminophen ordered for her practice. Between 2018 and 2023 she ordered far more hydrocodone/acetaminophen than any other individual customer of her supplier, and her oxycodone orders accounted for 74 percent of all oxycodone sold by that supplier between January 2021 and January 2023. When DEA investigators executed an administrative inspection warrant at her registered address, they found controlled substances unsecured throughout the property, no dispensing or inventory records, and at least 6,593 dosage units unaccounted for; she later produced records of purported pre-euthanasia dispensing to animals that investigators believe were largely fabricated, and pet owners interviewed did not recall her administering the medications. She voluntarily surrendered her DEA registration, and a federal judge assessed the maximum civil penalties.

Nurse Anesthetist Sentenced for Diverting Fentanyl from ~50 Patients

Dubuque, Iowa

Ian Lindsey, a certified registered nurse anesthetist, diverted fentanyl from nearly 50 patients at a Dubuque, Iowa hospital and had earlier diverted drugs as well, prosecutors said, falsely charting that he had administered fentanyl he had actually taken. He was sentenced to three months in prison.

Trenton Pharmacy Owner Convicted of Diverting Millions of Oxycodone Pills

Trenton, New Jersey

A pharmacist who co-owned and served as pharmacist-in-charge of Healthcare Pharmacy in Trenton, New Jersey was convicted by a federal jury of conspiracy to unlawfully distribute Schedule II controlled substances and maintaining a drug-involved premises. Between 2014 and 2017 she and employees acting at her direction filled fraudulent prescriptions outside the usual course of professional practice, distributing millions of oxycodone dosage units, including more than 800,000 pills in 2014 alone, much of it diverted to street-level drug dealers. She evaded state and federal reporting requirements by manipulating the pharmacy's records, and a DEA audit found more than 64,000 oxycodone pills diverted between April 2015 and August 2017. The DEA suspended the pharmacy's registration in 2017, and she was convicted following a two-week trial in U.S. District Court.

Osage Beach Nurse Anesthetist Diverted Fentanyl from Hospital Operating Rooms

Osage Beach, Missouri

A certified registered nurse anesthetist at Lake Regional Hospital in Osage Beach, Missouri, pleaded guilty to fraudulently obtaining fentanyl and hydromorphone from the hospital's automated dispensing cabinets for his own use. He scanned drugs to generate labels he then affixed to syringes filled with saline, concealing the swap, and falsified patient charts so the recorded doses would reconcile with what he actually gave patients. He also routinely withdrew two vials of fentanyl for procedures requiring only one, diverting the second vial. A pharmacy technician discovered mislabeled syringes during a routine cabinet restock, prompting a review of surveillance footage that documented months of near-daily diversion. He pleaded guilty to one count of obtaining a controlled substance by misrepresentation and faces up to four years in federal prison.

Travel Nurse Diverted Hydromorphone Using Patients' Health Information

Beckley, West Virginia

A travel nurse who worked at Raleigh General Hospital in Beckley, West Virginia, pleaded guilty to unlawfully accessing patients' protected health information to divert hydromorphone for her own use. Using her personal biometric login, she would begin a checkout of hydromorphone for a patient, siphon off a portion of the vial's contents once the drawer opened, dilute the remainder to disguise the missing volume, reseal the vial, and cancel the transaction so it appeared nothing had been dispensed. She carried out the scheme repeatedly over roughly five months of employment at the hospital. She pleaded guilty to obtaining a controlled substance by fraud and wrongful disclosure of individually identifiable health information, with sentencing set for April 2025.

Yale New Haven Hospital Nurse Tampered with Lorazepam Vials

New Haven, Connecticut

A registered nurse at Yale New Haven Hospital pleaded guilty to tampering with and stealing vials of lorazepam from the hospital's secure medication storage. He removed a portion of the lorazepam solution from vials intended for patients, replaced it with an inert solution, and returned the tampered vials to secure storage where they remained available for dispensing to patients; he also kept at least one vial outright. He pleaded guilty to tampering with a consumer product and to acquiring a controlled substance by fraud, and his nursing license was suspended pending sentencing, scheduled for March 2025.

Michigan Registered Nurse Fined and Probated Over Alpena Drug Diversion

Alpena, Michigan

A Michigan registered nurse in Alpena was fined and placed on probation after the state licensing bureau's disciplinary action report cited drug diversion, incompetence, and lack of good moral character as the basis for action.

Michigan Registered Nurse Fined and Probated Over Allendale Drug Diversion

Allendale, Michigan

A Michigan registered nurse in Allendale was fined and placed on probation after the state licensing bureau's disciplinary action report cited drug diversion, incompetence, lack of good moral character, and mental/physical inability to practice as the basis for action.

Physician diverted Demerol from patients for personal use

Dallas, TX

The Texas Medical Board found that a licensed physician diverted Demerol from patients for himself during December 2022 and tested positive for Demerol in February 2023. While under peer investigation for the disappearance of the Demerol, the physician resigned. The physician entered an Agreed Order of Voluntary Surrender, surrendering the Texas medical license in lieu of further disciplinary proceedings.

California pharmacist sentenced to more than seven years for dispensing over 450,000 opioid pills on fraudulent prescriptions

A Madera, California pharmacist was sentenced to more than seven years in federal prison for illegally trafficking opioid pills through his own pharmacy. According to court records, from December 2014 through November 2018 he dispensed more than 450,000 oxycodone and hydrocodone pills based on fraudulent prescriptions delivered by co-conspirators. Prosecutors said he demanded cash payments and raised his prices over time. The sentence was announced by the DEA on November 25, 2024.

Mid-Valley Hospital Pays $15,000 Penalty Over Nurse's Hydromorphone Theft

Omak, Washington

Mid-Valley Hospital and Clinic in Omak, Washington, agreed to pay a $15,000 civil penalty and implement corrective controlled-substances procedures after admitting a nurse stole doses of hydromorphone for nearly two years. The nurse kept leftover medication after administering patient doses instead of properly wasting it, and used overrides in the hospital's automated medication dispensing system to withdraw additional doses. Pharmacy technicians printed override reports for review, but the pharmacy director routinely filed them away without reviewing them, allowing the diversion to continue undetected. The nurse separately entered agreements with the Washington Department of Health and the U.S. Attorney's Office restricting her access to controlled substances and barring her from seeking DEA registration before November 2025.

Vermont revokes compact-licensed physician after Kentucky revocation tied to federal controlled-substance indictment

A physician who obtained a Vermont license through the Interstate Medical Licensure Compact in March 2020 was indicted federally on charges including conspiracy to distribute and dispense controlled substances under prescriptions not issued for a legitimate medical purpose, along with health care fraud and wire fraud conspiracy counts. The Kentucky medical board revoked her license in January 2024 after adopting a hearing officer's findings. On November 6, 2024 the Vermont Board of Medical Practice deemed the Kentucky action conclusive and revoked her Vermont license, ordering that any future reinstatement be contingent on a permanent ban on prescribing or dispensing controlled substances.

Macomb County Physician and Pharmacy Owner Pay $700,948 Over Opioid Prescribing and Filling Scheme

Clinton Township, Michigan

A Clinton Township, Michigan physician, his practice entity, and the owner of an on-site pharmacy agreed to pay a total of $700,948.42 to resolve False Claims Act allegations tied to controlled-substance prescribing. Dr. Stephen Swetech prescribed medically unnecessary opioid and ADHD medications, and pharmacy owner Yasser Maisari's Heartland Drugs, located in the same office complex, filled those prescriptions. The settlement also resolved separate allegations that Dr. Swetech received above-market rent from a laboratory as an inducement to refer patients for testing. As part of the resolution, Dr. Swetech agreed to rescind his DEA registration and never again prescribe, administer, or dispense controlled substances.

Pharmacist admitted to taking controlled substances without authorization from the pharmacy for personal use

A pharmacist admitted to taking controlled substances without authorization from the pharmacy for personal use on two counts. The licensee was also charged with felony theft of a controlled substance, which was deferred. The Board imposed a 120-day suspension and five years of rehabilitation probation.

Former Kalispell assisted living employee admitted diverting pain medication

A former employee of a Kalispell assisted living facility admitted in federal court to diverting pain medication, according to a U.S. Attorney's Office release published in November 2024. The Drug Enforcement Administration conducted the investigation. The available excerpt does not state the specific drug, the charge, how the diversion was discovered or the sentence.

Louisiana Pharmacy Technician Suspended for Diverting Controlled Substances

Louisiana

The Louisiana Board of Pharmacy suspended pharmacy technician Heather Marie Ward's credential for an indefinite period after finding she diverted controlled substances from her employer pharmacy. The Board, at its November 2024 meeting, assessed a $5,000 fine plus hearing, administrative, and investigative costs, and conditioned any future application on meeting requirements set out in the hearing order.

Louisiana Pharmacy Technician Suspended in Second Diversion Case Same Term

Louisiana

The Louisiana Board of Pharmacy suspended pharmacy technician Kaja Lee'ann Joseph's credential for an indefinite period after finding she diverted controlled substances from her employer pharmacy. The Board, at its November 2024 meeting, assessed a $1,000 fine plus hearing, administrative, and investigative costs, and conditioned any future application on meeting requirements set out in the hearing order.

Berlin pain practice, physician and physician assistant settled claims over prescribing after inconsistent drug tests

A physician, a physician assistant, and their Berlin pain management practice entered into a civil settlement with the federal government and paid a total of $300,000 to resolve Controlled Substances Act allegations. The government alleged that between March 2021 and February 2023 the two providers issued 43 prescriptions for oxycodone and/or fentanyl to six patients after each patient had a urine drug test result inconsistent with the prescribed medication, a potential sign of diversion or abuse. Both providers voluntarily surrendered their DEA registrations in March 2023 and agreed not to reapply for five years. The settlement is not a finding of liability.

Concord Hospital Nurse Diverted Fentanyl from ICU Patient's IV Line

Concord, New Hampshire

A nurse at Concord Hospital pleaded guilty to diverting fentanyl from an intravenous bag connected to an intensive care unit patient who was not under her assigned care. She removed a quantity of fentanyl from the IV line and replaced it with saline. She pleaded guilty to one count of tampering with consumer products and faces up to 10 years in prison at a sentencing hearing scheduled for January 2025. Prosecutors cited the case as part of a broader pattern of diversion enforcement against New Hampshire medical professionals and facilities.

WakeMed nurse charged with stealing fentanyl from IV bag

Raleigh, NC

A nurse at WakeMed in Raleigh, N.C., was charged after police alleged the nurse stole fentanyl from the hospital. Court records allege the nurse had job access and stole 2,500 mL of fentanyl from an IV bag on Oct. 19. WakeMed police arrested the nurse on Oct. 30, and the nurse faces two felony charges: embezzling/diverting a controlled substance by registrant/employee and obtaining possession of a controlled substance by fraud/forgery. A hospital spokesperson said the nurse is no longer employed, and the nurse is out on bond with a next court date scheduled for Nov. 19.

Pharmacy assistant charged after allegedly attempting to deliver a controlled substance against pharmacy policy

Snohomish County, Washington

A pharmacy assistant was allegedly terminated from a pharmacy job for attempting to deliver a controlled substance in violation of pharmacy policy. The Washington Pharmacy Quality Assurance Commission charged the individual with unprofessional conduct. The individual has not responded to the department's investigation into the allegations.

Jackson, Kentucky Clinic Physician Pays $450,000 Over Invalid Prescriptions and Lab Kickbacks

Jackson, Kentucky

Dr. Pablo Merced, who owned St. John Neumann's Extended Hours Clinic in Jackson, Kentucky, and his wife and office manager Theresa Merced agreed to pay $450,000 to resolve civil allegations that Dr. Merced violated the Controlled Substances Act and that both defrauded federal health care programs through kickbacks. Investigators alleged Dr. Merced pre-signed 94 blank controlled-substance prescriptions and allowed unauthorized staff to complete and issue them to patients he had not evaluated, including while he was out of the country. The couple separately allegedly solicited cash kickbacks from a laboratory sales representative in exchange for referring patient lab tests, generating more than $9 million in Medicare, Medicaid, and TRICARE billings. Dr. Merced agreed to a 15-year voluntary exclusion from federal health care programs and surrendered his DEA registration.

25 Charged in Puerto Rico Retail Pharmacy Prescription Drug Diversion Ring

Bayamón, Aibonito, and Canóvanas, Puerto Rico

A federal grand jury in Puerto Rico indicted 25 individuals on September 19, 2024 — including pharmacy owners, a pharmacist, and a pharmacy technician tied to Farmacia Monte Verde, Farmacia Santa Olaya, Farmacia Unity, and Farmacia San Antonio — for buying and reselling misbranded and diverted prescription drugs through their retail pharmacies. The drugs arrived in unlabeled resealable bags with no lot numbers or expiration dates, and pharmacy defendants billed health plans as though the diverted product were authentic.

Dedham Rehabilitation Center Nurse Tampered with Oxycodone Syringes

Dedham, Massachusetts

A registered nurse at a Dedham, Massachusetts, rehabilitation center providing long-term chronic and post-acute care was sentenced to three years of probation for tampering with patients' liquid oxycodone. During shifts between February and May 2020, she removed oxycodone from syringes intended for patients, consumed it herself, and refilled the syringes with water or saline to avoid detection before returning them to medication carts where they could have been administered to patients. She pleaded guilty in January 2024 to one count of tampering with a consumer product and was sentenced roughly eight months later.