Trivillian's Pharmacy, owner plead guilty to federal health care and drug crimes

CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Paula Butterfield, owner and pharmacist-in-charge of Trivillian’s Pharmacy, a long-standing Kanawha City retail and compounding pharmacy, pleaded guilty to making a false statement in a healthcare matter. Butterfield also pleaded guilty on behalf of Trivillian’s to one count of health care fraud and one count of misbranding drugs.

Butterfield admitted that Trivillian’s defrauded Medicare and Medicaid by dispensing less expensive compounded drugs while billing for more expensive brand name drugs, dispensing generic drugs while billing for more expensive brand name drugs, billing for drugs that were never dispensed or were expired and dispensing drugs that were compounded outside of a safe and clean environment. The pharmacy also admitted to dispensing compounded drugs under labels and identification numbers associated with brand name drugs.

Butterfield, a Medicare beneficiary, pleaded guilty to submitting false information claims to Medicare on her own behalf, seeking payment for drugs that were never dispensed to her.

Trivillian’s faces a fine of up to $1 million or twice the gross financial gain or twice the gross financial loss resulting from the pharmacy’s conduct, whichever is greater; not less than two years nor more than 10 years of probation; a mandatory special assessment of $800; and an order of restitution.

Butterfield faces up to five years in federal prison; a fine of $250,000, or twice the gross financial gain or twice the gross financial loss resulting from her conduct, whichever is greater; three years of supervised release; a mandatory special assessment of $100; and an order of restitution.

Trivillian’s and Butterfield are scheduled to be sentenced on May 28, 2015.

Goodwin also announced that his office reached a civil settlement with Trivillian’s and Butterfield, recovering $1.1. million on behalf of Medicare and West Virginia Medicaid. The settlement represents more than three times the loss suffered by Medicare and Medicaid.

“Cheating Medicare and Medicaid is really cheating the American taxpayer,” Goodwin said. “Thanks to these prosecutions and this settlement, money that was taken from the taxpayers by fraud can now be used to provide health care to the many people who depend on these programs.”

The investigation is being conducted by United States Health and Human Services, the United States Food and Drug Administration Office of Criminal Investigation, West Virginia State Police, West Virginia Medicaid Fraud Control Unit and Drug Enforcement Administration. Assistant United States Attorney Eumi Choi is handling the prosecution.

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