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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of California

FOR IMMEDIATE RELEASE
Tuesday, July 28, 2020

United States Reaches $200,000 Settlement with Siskiyou County Pharmacy for Controlled Substances Act Violations

SACRAMENTO, Calif. — KJL Consultants Inc., doing business as Luke’s Yreka Drug, and owner Lucas Walsh have agreed to pay $200,000 to resolve allegations that the pharmacy committed multiple violations of the Controlled Substances Act’s strict recordkeeping requirements, U.S. Attorney McGregor W. Scott announced.

The pharmacy permanently ceased operations in December 2018, and a key term of the settlement agreement included the pharmacy’s surrender of its DEA registration for cause.

The settlement relates to a DEA administrative audit and inspection of Luke’s Yreka Drug in September 2016 during which the DEA identified more than 150 Controlled Substances Act violations including failing to maintain the archived DEA-E-222 form for orders of controlled substances from a distributor, to properly document the quantity and/or date of controlled substances received from a distributor, and to conduct a complete and accurate biennial inventory.

“To prevent diversion of opioids and other dangerous drugs and avoid harm to the public from abuse of these powerful substances, it is critical that all pharmacies, whether they be large national chains or small local stores like Luke’s, ensure that their drug transactions are properly documented, tracked and inventoried,” U.S. Attorney Scott said. “This settlement emphasizes the importance of proper and diligent recordkeeping and the significant penalties to pharmacies that fail to do so.”

“Failure to ensure proper record keeping and accurate inventories of controlled substances allows for potential diversion of powerful prescription drugs,” stated DEA Special Agent in Charge, Daniel Comeaux. “DEA is committed to keeping our communities safe by holding companies like KJL accountable for such deficiencies.”

This settlement resulted from joint efforts of the U.S. Attorney’s Office for the Eastern District of California and the DEA. It was handled by Assistant U.S. Attorney Lynn Trinka Ernce.

The claims resolved by this settlement are allegations only.

Updated July 28, 2020