Former Albion Pharmacists Sentenced To Prison For Federal Drug Trafficking And Healthcare Fraud Charges

John Shedd and Terry Tooley Filled Controlled Substance Prescriptions They Knew Were Written For No Legitimate Medical Purpose and Fraudulently Billed Health Insurers

          GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, were each sentenced to 15 months in prison on federal drug trafficking and healthcare fraud charges. Chief Judge Robert J. Jonker, who imposed the sentences, also ordered them to pay more than $465,000 in restitution to Medicare, Medicaid, and the other health insurers they defrauded. He also imposed a two-year term of supervised release and ordered them never to obtain a pharmacy license or practice again as a pharmacist. Separately, Shedd and Tooley forfeited $1.3 million in cash to the United States.

          Shedd and Tooley, who previously owned Parks Drug Store in Albion, admitted they filled prescriptions written by former Albion doctor Horace J. Davis and dispensed 50,000 dosage units of methadone, even though they knew those prescriptions had been written for no legitimate medical purpose. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they billed Medicare, Medicaid, and Blue Cross Blue Shield of Michigan more than $465,000 for prescriptions that were never written, and forged documents in connection with their false healthcare billings.

          "Shedd and Tooley contributed to the opioid epidemic, but thanks to the good work of our law enforcement partners, they’ll spend time in prison and never work as pharmacists again," said U.S. Attorney Birge. "They put lives in danger by filling prescriptions they knew they shouldn’t have. Now they’ll pay the price," he said.

          "It is a DEA priority to aggressively pursue healthcare professionals who violate our trust and illegally distribute controlled prescription drugs," said Special Agent in Charge Keith Martin, of the DEA Detroit Field Division. "Outcomes like these demonstrate the commitment federal, state and local law enforcement officials have to protect our communities during a very serious public health crisis."

          The investigation was conducted by the Albion Department of Public Safety, Calhoun County Sheriff, DEA, and IRS Criminal Investigation. Assistant United States Attorney Clay Stiffler prosecuted the case.

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