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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Oklahoma

FOR IMMEDIATE RELEASE
Monday, January 23, 2017

Duncan Pharmacy to Pay $50,000 to Settle Claims Involving Violations of the Controlled Substances Act

Oklahoma City, Oklahoma – R&S Drug Stores, Inc. ("R&S Drug"), an Oklahoma corporation which operates three retail pharmacies in Duncan, Oklahoma, has paid $50,000 in civil penalties to the United States to settle claims stemming from alleged violations of the Controlled Substances Act, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.

 

The Controlled Substances Act, 21 U.S.C. Sections 801 et seq. ("CSA"), was passed by Congress to combat the illegal distribution and abuse of controlled substances, including prescription medications. The CSA is enforced by the Drug Enforcement Administration's (DEA) Office of Diversion Control, whose mission is to prevent, detect, and investigate the diversion of controlled pharmaceuticals and listed chemicals from legitimate sources while ensuring an adequate and uninterrupted supply for legitimate medical, commercial, and scientific needs. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate 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 United States alleged that between August 1, 2014, and August 31, 2016, R&S Drug violated federal law by transferring controlled substances between stores without the proper documentation, failed to conduct and maintain a biennial inventory, failed to execute powers of attorney authorizing pharmacists to issue orders for Schedule I and II controlled substances on behalf of R&S Drug (the registrant), and failed to dispense controlled substances under the correct practitioner’s name and DEA registration number.

In order to resolve the claims by the United States, R&S Drug paid $50,000 in civil penalties to the government. In reaching this settlement, R&S Drug did not admit liability and the government did not make any concession regarding the legitimacy of its claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

This case was investigated by the Drug Enforcement Administration's Office of Diversion Control, Oklahoma City District Office Diversion Group, and was prosecuted by Assistant U.S. Attorney Ronald R. Gallegos.

Updated January 23, 2017