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Justice News

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

FOR IMMEDIATE RELEASE
Monday, April 3, 2017

Bay Area Companies Agree To Pay $717,250 To Settle Department Of Justice Claims That They Failed To Maintain Adequate Records Regarding Controlled Substances

SAN FRANCISO – Golden Gate Pharmacy Holdings and its wholly owned subsidiaries, Golden Gate Pharmacy Services (GGPS) and Ross Valley Compounding Pharmacy (Ross Valley), have agreed to pay $717,250 to settle allegations by the U.S. Department of Justice that the companies failed to keep and maintain adequate records pertaining to controlled substances at their San Rafael, California facility, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. 

The settlement agreement, signed earlier today by Justice Department officials, was reached to resolve allegations by the government that a September 2014 DEA inspection uncovered multiple violations by GGPS and Ross Valley of the Controlled Substances Act, 21 U.S.C. § 801.  According to the agreement, San Rafael-based companies GGPS and Ross Valley each was, at the relevant time, registered with the DEA as a Retail Pharmacy providing them with authorizations to handle Schedules II, III, IIIN, and IV controlled substances.  GGPS and Ross Valley both acknowledged they had an obligation to “keep and maintain” records related to its receipt, manufacturing and distribution of controlled substances in connection with operations at their San Rafael, California facility.  According to the agreement, following the DEA’s inspection, the government concluded that between September 4, 2012, and September 4, 2014, GGPS and Ross Valley failed to record or maintain adequate inventory records or “records of the receipt, storage or shipment of controlled substances in at least 5,161 instances.”  In addition, according to the agreement, an employee at the San Rafael facility pilfered approximately 8,000 oxycodone tablets.  According to the terms of the agreement, Golden Gate Pharmacy Holdings, GGPS, and Ross Valley Pharmacy will pay the government $717,250 to resolve all civil claims related to the recordkeeping violations identified in the investigation. 

Assistant U.S. Attorney Jonathan U. Lee handled this matter with the assistance of Garland He and Jessica Hurtado.

Topic: 
Prescription Drugs
Updated April 6, 2017