LOUISVILLE, KY – David J. Hale, United States Attorney for the Western District of Kentucky, today announced the settlement of civil claims by the United States, in the amount of $75,000, against Mayfair Pharmacy, Inc. of Owensboro, Kentucky.

The United States alleges between June 10, 2009 and June 9, 2011, Mayfair Pharmacy could not account for the whereabouts of various Hydrocodone products. An accountability audit by the Drug Enforcement Administration (DEA) revealed a shortage of nearly 140,000 Hydrocodone tablets. The DEA inspection concluded that Mayfair was in violation of the Uniform Controlled Substances Act for, among other things, the following conduct: failure to maintain records of controlled substances received or dispensed; failure to maintain paper prescriptions of controlled substances in Schedules III through V; failure to notify the DEA of thefts; failure to prevent further diversion by not providing effective controls and procedures to guard against theft and diversion of controlled substances; and permitting approximately 57 instances of incorrect or missing information in Mayfair Pharmacy's execution of DEA Forms 222.

The DEA issued notice of immediate suspension of Mayfair Pharmacy’s Certificate of Registration on August 29, 2011, finding that Mayfair Pharmacy constituted an imminent danger to the public health and safety. A hearing on the immediate suspension was scheduled to take place on October 18, 2011, however Mayfair Pharmacy voluntarily surrendered its registration before the hearing.

“We take seriously the enforcement of obligations imposed upon pharmacies and other licensed individuals to appropriately maintain and monitor their inventories of prescription narcotics,” stated U.S. Attorney David J. Hale.

According to the Owensboro, Kentucky Police Department and the Louisville, Kentucky Metro Police Department (LMPD), Mayfair Pharmacy was the victim of an employee theft. Beginning in 2010, Owensboro Police began investigating tips that an employee of Mayfair Pharmacy was stealing controlled substances. Mayfair Pharmacy was alerted by police, but allegedly failed to take measures to prevent further diversion of controlled substances. As part of the investigation, LMPD arrested the husband of a Mayfair Pharmacy employee and charged him with unlawful trafficking of a controlled substance. The employee was also arrested.

The settlement amount shall be paid by electronic funds transfer no later than February 10, 2012.

This settlement agreement is neither an admission of liability by Mayfair Pharmacy, Inc. nor a concession by the United States that its claims are not well founded.

This case was prosecuted by Assistant United States Attorney Benjamin S. Schecter of the Western District of Kentucky, and was investigated by the Owensboro, Kentucky Police Department and the United States Drug Enforcement Administration.

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