The U.S. Attorney’s Office has reached a civil settlement with Allcare Discount Pharmacy, located in Chicago’s Logan Square neighborhood, over alleged violations of the Controlled Substances Act. According to federal authorities, these violations allowed opioids to be diverted from the pharmacy for an extended period.
An inspection and audit by the U.S. Drug Enforcement Administration (DEA) found that Allcare did not keep proper records regarding the receipt and distribution of controlled substances such as hydrocodone-acetaminophen and alprazolam. The DEA also determined that Allcare failed to implement effective controls and procedures to prevent theft and diversion of these drugs.
Between 2015 and 2017, two pharmacy technicians at Allcare conspired to steal more than 56,000 pills of hydrocodone, selling them outside the pharmacy. One technician covered up the theft by falsifying inventory records to make it appear as though the pills had not been received or had been dispensed properly. Both individuals pleaded guilty to federal drug charges and were sentenced in 2019—one receiving a five-year prison term and the other one year.
Under the terms of the settlement, Allcare will pay a $250,000 penalty to the United States. The pharmacy has also fulfilled its obligations under a Memorandum of Agreement with the DEA requiring complete and accurate recordkeeping for controlled substances transactions. The settlement does not constitute an admission of liability by Allcare nor does it represent a concession by federal authorities regarding their claims.
The announcement was made by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, along with Shane Catone, Special Agent-in-Charge of the DEA Chicago Field Division. Assistant U.S. Attorney Valerie R. Raedy and members of the Affirmative Civil Enforcement Unit handled the civil case.
“Pharmacies must take their responsibilities under the Controlled Substances Act seriously and comply with security protocols and proper oversight to prevent diversion of controlled substances,” said U.S. Attorney Boutros. “The Chicago U.S. Attorney’s Office will continue to work closely with our law enforcement partners to enforce full compliance with the Controlled Substances Act and protect our communities from the dangers of opioid diversion and abuse.”
