Pharmacy pays $250,000 to resolve Controlled Substances Act violations | USAO-NDGA

ATLANTA – Caduceus USA Medical Pharmacy, LLC (“Caduceus”) has agreed to surrender its DEA registration and pay $250,000 to resolve allegations that it failed to keep proper records of the controlled substances that it purchased, maintained and dispensed in violation of the Controlled Substances Act (CSA).  These requirements are designed to prevent the diversion of controlled substances.  Prior to surrendering its registration, Caduceus supplied controlled substances to a chain of occupational medicine clinics operated by an affiliated entity.

“We trust pharmacies to scrupulously follow the CSA’s recordkeeping requirements so that the DEA can carry out its mission to prevent the diversion of controlled substances into illicit channels,” said U.S. Attorney Byung J. “BJay” Pak.  “When pharmacies don’t live up to their obligations, our office will vigorously pursue the violations using a variety of enforcement mechanisms.” 

“This pharmacy spun a web of deception when it failed to keep proper records of controlled substances it purchased, maintained and dispensed,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Such careless behavior allows for substances to be diverted and sold on the black market with no measure of accountability. The surrender of the pharmacy’s DEA registration and monetary fine are proactive steps that DEA Diversion and its law enforcement partners will take to discourage other negligent healthcare providers from engaging in similar unlawful behavior.”  

The government alleges that Caduceus failed to keep accurate records of the controlled substances that it purchased and dispensed, failed to complete the required biennial inventory, failed to maintain records of controlled substances separately from its ordinary business records, and distributed a controlled substance not authorized by its registration. Caduceus has acknowledged that it dispensed and distributed controlled substances in noncompliance with the CSA and its implementing regulations.

The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed.  Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.

This case was investigated by the Drug Enforcement Administration.

The civil settlement was reached by Assistant U.S. Attorneys Austin Hall and Mellori Lumpkin-Dawson.

For further information please contact the U.S. Attorney’s Public Affairs Office at or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is

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