Philly Leader

PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Professional Pharmacy & Convalescent Products, Ltd., a pharmacy based in Pottstown, PA, agreed to resolve allegations of improperly dispensing opioids and other controlled substances to individuals and submitting claims to Medicare and Medicaid for those illegally dispensed controlled substances. The settlement resolves the case for a payment of $150,000 and follows the pharmacy's surrender of its DEA registration.

Under the Controlled Substances Act, pharmacies registered with the DEA are permitted to dispense controlled substances only to patients based on a valid prescription. A prescription is valid only when issued for a legitimate medical purpose and in the usual course of professional practice. This legal obligation applies broadly to controlled substances, including drugs like oxycodone. The settlement between the United States and Professional resolves allegations that from June 1, 2018, through March 4, 2024, Professional illegally dispensed controlled substances like oxycodone without meeting these legal obligations and submitted illegal claims to Medicare and Medicaid for these drugs. The settlement agreement covers liability under the Controlled Substances Act, which imposes civil penalties for illegal prescriptions of controlled substances, and the False Claims Act, which imposes civil damages and penalties for false claims submitted to the federal government.

“Federal law imposes obligations on pharmacies like Professional to only dispense controlled substances when appropriate,” said U.S. Attorney Romero. “The law is critical in protecting our community from the dangers of the opioid epidemic. This settlement provides yet another example of my office’s commitment to pursuing misconduct at every level in the opioid supply chain.”

“Professional Pharmacy exhibited a continued disregard of their obligations under the Controlled Substances Act by illegally dispensing powerful controlled substances like oxycodone over several years,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Pharmacies are entrusted with properly dispensing controlled substances in their care.”

“Pharmacies are responsible for all claims they submit to Medicare and Medicaid,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, DEA, and the U.S. Attorney’s Office will work together to ensure opioids are dispensed properly and that taxpayer dollars are only spent on bona fide pharmacy claims.”

The case was investigated by the Philadelphia Field Division of the DEA and HHS-OIG. The civil investigation and settlement were handled by Assistant United States Attorney Anthony D. Scicchitano and Auditors Denis Cooke and Dawn Wiggins.

The claims resolved by this settlement are allegations only; there has been no determination of liability.