Substance Abuse Treatment Program Agrees To Pay Civil Penalties To Settle Allegations Of Controlled Substances Act Violations

NASHVILLE – VCPHCS IX, LLC, which operates a substance abuse treatment program in Nashville, has agreed to pay a civil settlement of $50,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act (CSA), announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. 

The United States alleged that VCPHCS failed to maintain complete and accurate records of the movement of controlled substances, and omitted material information on multiple forms required by the Drug Enforcement Administration (DEA), which are used to order and track controlled substances. Additionally, the United States alleged that VCPHCS failed to include a required form with a return shipment for controlled substances.

“Complete and accurate records are critical to ensure the safe distribution of controlled substances and to protect against diversion,” said U.S. Attorney Wildasin. “For this reason, our Office is committed to expecting total compliance with the Controlled Substances Act.”

“Everyone who is involved in the safe and legal distribution of controlled substances has an obligation to follow the law and do their part to help protect the nation’s prescription drug supply chain against diversion, or other wrong-doing,” said Special Agent in Charge J. Todd Scott, who heads the Drug Enforcement Administration’s Louisville Division.  “Proper record keeping is an essential step in this endeavor, and compliance with the Controlled Substances Act is non-negotiable.”

Congress passed the CSA to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with strict inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including narcotic treatment programs, maintain complete and accurate inventories and records of each substance manufactured, received, sold, delivered, dispensed, or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

This case was investigated by the Drug Enforcement Administration’s Nashville Field Office Regulatory Group. The United States was represented by Assistant U.S. Attorney Kaitlin E. Hazard.

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