Levittown Physician and Pharmacy Owner Agrees to Pay $300,000 to Resolve Controlled Substances Act Violations

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph E. Kepko, D.O., has agreed to pay $300,000 to resolve allegations that he violated the Controlled Substances Act (CSA) by failing to maintain adequate Drug Enforcement Administration (DEA) registrations for his Red Rose Rejuvenation medical practices that he owned and operated, failing to maintain receiving and dispensing records, failing to perform biennial inventories, and possessing pre-signed prescriptions.

The United States’ investigation involved Kepko’s medical practices in both the Commonwealth of Pennsylvania and the State of New Jersey, as well as his DEA registered address that Kepko owned and operated at 1 Red Rose Drive, Levittown, Pennsylvania, 19056.

Kepko, a Levittown physician, is registered to prescribe, administer, purchase and dispense Schedule II-V controlled substances. The settlement announced today resolves allegations that between January 2021 and August 2023, Kepko failed to maintain adequate DEA registrations for multiple medical practices that he owned, operated, and stored controlled substances. Furthermore, Kepko failed to maintain complete and accurate records of controlled substances, failed to take a biennial inventory, and had possession of pre-signed prescriptions in violation of the CSA, and specifically, 21 C.F.R. §§ 1304.21(a) and 1304.11(d).

In addition to the $300,000 penalty, Kepko has entered into a three-year Memorandum of Agreement (MOA) with the DEA, which includes a number of monitoring requirements. Specifically, Kepko must report all patient requests for controlled substances that give rise to suspicion that the patient is engaging in or attempting to engage in illegal drug diversion conduct for both Kepko’s Pennsylvania and New Jersey DEA registered addresses. Kepko must also share Standard Operating Procedures (SOPs) pertaining to all aspects of purchasing, storing, and distributing controlled substances with DEA.

“Controlled substances, especially opioids, pose extraordinary risks to communities in this district,” said U.S. Attorney Romero. “When physicians and pharmacies are granted the privilege of purchasing controlled substances, they also accept the significant responsibility of ensuring that controlled substances are used for a legitimate, medical purpose. As a result, they must maintain the records necessary for accountability and transparency. When this does not happen, we will work with our law enforcement partners, and use all available enforcement tools, to hold both physicians and pharmacies responsible.”

“Pharmacies, and in this case, a physician owner, are entrusted with the privilege of dispensing powerful prescriptions. With that responsibility comes the obligation to properly register their locations, as well as safeguard and keep proper inventory over their drugs,” said Thomas Hodnett, Special Agent in Charge of the DEA Philadelphia Field Division. “Civil settlements and monitoring requirements imposed against Kepko can help ensure that these safeguards are met.”

The investigation was conducted by the DEA’s Philadelphia Field Division Diversion Groups 71 and 72, as well as the DEA New Jersey Field Division, Camden District Office Diversion Group. For the United States Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorney Deborah W. Frey and Auditor Denis Cooke.