AUSA VICKIE E. LEDUC at 410-209-4885

January 17, 2007

PHARMACIST AGREES TO PAY $500,000 TO SETTLE OXYCODONE BASED VIOLATIONS OF THE CONTROLLED SUBSTANCES ACT

Baltimore, Maryland - Ip Kwok Cheung (AKA David Cheung), age 45, a pharmacist practicing in Catonsville, Maryland, and the former owner of NatureCare Pharmacy, 1140 North Rolling Road, Catonsville, Maryland, has agreed to pay $500,000 to settle claims that he violated the Controlled Substances Act by providing false information and/or improperly dispensing prescriptions containing Oxycodone, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

United States Attorney Rod J. Rosenstein said, “Pharmacies and pharmacists who fill bogus prescriptions for controlled substances, especially invalid prescriptions for the highly addictive Oxycontin and Oxycodone related drugs, must be held accountable for their actions. This settlement is further proof that the United States will not tolerate the diversion of highly addictive controlled substances into the streets of Maryland.”

The Controlled Substances Act requires pharmacists and pharmacies to dispense controlled substances pursuant to valid prescriptions and to maintain complete and accurate records of the distribution of controlled substances in a pharmacies’ possession. The Act authorizes the imposition of up to $10,000 per violation of the record keeping requirements and $25,000 for each occasion a pharmacy or pharmacist dispenses a controlled substance without a valid prescription.

According to the settlement agreement, the government contends that between March 18, 2002 and November 1, 2004, Cheung and NatureCare pharmacy committed multiple violations of the Controlled Substances Act by dispensing Oxycontin and Oxycodone related products without a valid prescription; and from March 21, 2003 to October 6, 2003 placed false DEA numbers on the back of 246 dispensed prescriptions, including prescriptions for Oxycontin, Percocet, Endocet and Roxicet, in order to avoid detection by the DEA.

As part of the settlement agreement, Cheung will not contest the forfeiture of $77,207 seized during searches executed on December 1, 2003 at his home in Ellicott City and the NatureCare pharmacy in Catonsville, as well as $130,000 from the sale of NatureCare pharmacy.

United States Attorney Rod J. Rosenstein commended the investigative work performed by the Drug Enforcement Administration, Baltimore District Group and the Department of Health and Human Services - Office of Inspector General. Mr. Rosenstein also thanked Assistant U.S. Attorneys Robert R. Harding and Thomas F. Corcoran, who handled the case.