News and Press Releases

CINCINNATI PHARMACEUTICAL DISTRIBUTOR TO PAY $320,000 FOR FAILING TO GUARD AGAINST DIVERSION OF CONTROLLED SUBSTANCES

FOR IMMEDIATE RELEASE
THURSDAY, APRIL 05, 2012
http://www.justice.gov/usao/ohs
CONTACT: Fred Alverson
Public Affairs Officer
(614) 469-5715

CINCINNATI – KeySource Medical, Inc., a Cincinnati-based wholesale distributor of pharmaceutical drugs, has agreed to pay $320,000 to resolve potential civil claims of the United States against them for failing to meet their obligations to have an adequate diversion program under the Controlled Substances Act.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Robert L. Corso, Special Agent in Charge of the Detroit Field Division, Drug Enforcement Administration (DEA) announced the settlement agreement today.
Keysource Medical, Inc. (KMI) was the subject of a DEA investigation that found that the company was not maintaining an adequate diversion program, even while it was filling a large number of suspicious orders for controlled substances from pharmacies in Florida. Between 2009 and 2011, KMI sent over 52 million dosage units of oxycodone into Florida, including over 44 million units in 2010 alone.  In 2010, DEA statistics showed that KMI was the largest independent supplier of oxycodone to the state of Florida in the country; no other single-facility distributor sent more oxycodone to Florida during that period. 
The Controlled Substances Act requires that distributors monitor and disclose suspicious orders of controlled substances.  In June 2011, DEA issued an immediate suspension of KMI’s DEA Certificate of Registration to sell controlled substances, a decision the company challenged by filing a motion for a preliminary injunction in federal court.  After a two-day hearing in July 2011, Chief Judge Susan J. Dlott denied KeySource’s motion.  KMI surrendered its registration in September 2011.
“Prescription drug abuse has devastating and real consequences to our community and beyond,” said Stewart.  “The United States is committed to doing everything we can to fight against the diversion of controlled substances, and this civil resolution is part of our effort to enforce the law and protect the public.” 
 “Pharmaceutical distributors have a responsibility to ensure that the drugs they sell don’t end up in the hands of drug traffickers or pharmacies that are conducting their business illegally,” Corso said.  “It is crucial for pharmaceutical distributors to maintain a strong diversion program and to report any and all suspicious orders to the DEA.”  

Stewart commended Deputy Civil Chief Donetta Wiethe and Assistant U.S. Attorney Adam Wright who secured the settlement on behalf of the United States.

 

 

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