March 15, 2007 -
TWO PHILADELPHIA PHYSICIANS CHARGED WITH OPERATING “PILL MILL”
United States Attorney Patrick L. Meehan announced the filing today of an Information* charging two physicians with various narcotics offenses arising out of their operation of a fraudulent medical clinic, Family Medical Center, formerly located at 4000 N. Marshall Street, Philadelphia, Pennsylvania. The information charges Aziz Chaudhry, M.D., and Manuel Pagalilauan, M.D., with conspiracy to distribute controlled substances, in violation of Title 21, United States Code, Section 846, and two counts of distribution of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1). The information also charges Chaudhry with one count of defrauding the Social Security Administration, in violation of Title 42, United States Code, Section 408(a).
“According to the information, although the defendants held Family Medical Center out as a genuine medical clinic, in reality it was a prescription “pill mill,” said Meehan. “So-called patients who were really customers could, for a fee, obtain medical prescriptions for controlled and non-controlled prescription drugs, without there being any medical necessity for these prescriptions.”
The information charges that the defendants wrote and sold the customers, who included drug dealers and drug abusers, thousands of fraudulent prescriptions, for commonly abused Schedule III and IV drugs, for $50 to $60 per “prescription.”
DEFENDANT |
ADDRESS |
AGE [Date of Birth] |
Aziz Chaudhry, M.D. |
Bensalem PA |
57 years old |
Manuel Pagalilauan, M.D. |
Bensalem, PA |
62 years old |
If convicted, defendant Chaudhry faces a maximum possible sentence of 20 years imprisonment, up to lifetime supervised release with a mandatory minimum of 2 years of supervised release, and a $1,000,000 fine, along with restitution in the amount of $59,684.
If convicted, defendant Pagalilauan faces a maximum possible sentence of 15 years imprisonment, up to lifetime supervised release with a mandatory minimum of 2 years of supervised release, and a $750,000 fine.
The case was investigated by the Federal Bureau of Investigation (FBI),
the Drug Enforcement Administration (DEA), the U.S. Department of Health
and Human Services (HHS) and the Commonwealth of Pennsylvania State Attorney
General’s Office, Office of Inspector General. The case has been assigned
to Assistant United States Attorney Mary E. Crawley.
| UNITED
STATES ATTORNEY'S OFFICE EASTERN DISTRICT, PENNSYLVANIA Suite 1250, 615 Chestnut Street Philadelphia, PA 19106 |
Contact: RICH MANIERI Media Contact 215.861.8525 |
*An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Benjamin Franklin Photo by B. Krist for the Greater Philadelphia Tourism Marketing Corporation