Pharmacy Settles With Feds, Pays $192K, Resolves Drug Act Violations

NEW HAVEN, CT — Community Health Pharmacy, a Dixwell Avenue retail pharmacy, entered into a civil settlement agreement with the federal government and paid $192,000 to resolve allegations that it violated the civil provisions of the Controlled Substances Act, according to the Justice Department.

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, and Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, made the announcement Thursday.

According to Silverman, in passing the CSA, Congress took steps to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances – from their manufacture to their consumption by the ultimate user – was to be subject to intense governmental regulation.

"This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances, while still ensuring that an adequate supply of those substances meet the medical and scientific needs of the United States," a news release from Justice reads. "Accordingly, the CSA requires entities that dispense controlled substances to maintain certain records and to conduct periodic inventories to prevent against diversion of controlled substances."

Silverman said the settlement resolves allegations that between January 1, 2022, and May 14, 2024, Community Health Pharmacy failed to keep complete and accurate records regarding the receipt and dispensing of controlled substances.

The government contends that the pharmacy failed to perform a biennial inventory, failed to execute a valid power of attorney, and allowed an unauthorized individual sign DEA Form 222s (order forms) on at least eight occasions, Silverman's release reads. The government also alleges that Community Health Pharmacy did not retain required copies of order forms, invoices, and other records related to controlled substances, and did not record certain required information on DEA Form 222s.

"Pharmacies play a unique role in ensuring that controlled substances are properly handled, accounted for, and dispensed," Silverman said. "It is vital that pharmacies comply with the record keeping requirements of the Controlled Substances Act to help prevent diversion and keep our communities safe. This settlement highlights our office’s continued efforts to hold pharmacies accountable for their responsibilities under federal law."

As part of the settlement, Community Health Pharmacy has agreed to enter into a three-year Memorandum of Agreement with the DEA that is designed to ensure future compliance with the requirements of the CSA and its implementing regulations.

"DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substance Act," said Acting DEA Special Agent in Charge Belleau. "We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed."

This investigation was conducted by the Drug Enforcement Administration’s Office of Diversion Control with the assistance of the Connecticut Department of Consumer Protection, Drug Control Division. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek.