DOJ Seal Department of Justice  
United States Attorney John M. Bales
Eastern District of Texas

                                     

FOR IMMEDIATE RELEASE            CONTACT:  DAVILYN WALSTON
THURSDAY, JULY 23, 2009            PUBLIC INFORMATION OFFICER
WWW.USDOJ.GOV/USAO/txe             PHONE: (409) 839-2538 CELL: (409) 553-9881

 

LIVINGSTON MAN GUILTY OF FEDERAL DRUG CRIMES

 

            BEAUMONT, TX – U.S. Attorney John M. Bales announced today that a 56-year-old Livingston, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas. 

            DONALD GENE HOLMES pleaded guilty to an Information charging him with conspiracy to distribute a controlled substance today before U.S. Magistrate Judge Earl Hines.

            According to information presented in court, from July 2007 until February 2008, Holmes owned and operated Global Medical Logistics (GML) in Livingston, Texas.  GML's sole purpose was to assist others in establishing pain management clinics in the Houston and Southeast Texas areas. Holmes, a licensed physician's assistant, connected owners of at least 7 pain management clinics with doctors and staff personnel.  Some of the doctors Holmes placed in the pain management clinics were actually foreign medical school graduates who were not licensed to treat patients or prescribe medicine.  Holmes and other physicians working at the clinics would pre-sign prescription pads for the unlicensed foreign medical school graduates to complete after seeing patients.  Holmes acknowledged that the way clinics dispensed hydrocodone, a drug commonly prescribed to treat pain, “did not adhere to standard medical procedures” and was “not in the usual course of professional practice.”  Additionally, from September 2008 through November 2008, Holmes worked for three pain management clinics in Houston.  In total, Holmes was responsible for illegally dispensing, or assisting others in illegally dispensing, approximately 90,000 units of hydrocodone. 

            Holmes faces up to 5 years in federal prison at sentencing.  A sentencing date has not been set.

            This case is being investigated by the DEA, FBI, IRS, and Texas Attorney General’s Medicaid Fraud Control Unit, and prosecuted by Special Assistant U.S. Attorney Christopher Tortorice. 

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