Cumberland Times-News

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June 5, 2014

Petersburg pharmacy pays $2M settlement

Federal investigation tied to convicted physician

PETERSBURG, W.Va. — A Grant County pharmacy and several of its employees have paid $2 million to end a federal investigation into its operation.

Judy’s Drug Store Inc., Darin Judy, Emily Judy, Kimberly Arbaugh and Casey Watts agreed to a $2 million civil settlement in U.S. District Court in Wheeling, U.S. Attorney William Ihlenfeld II announced Wednesday.

Judy’s Drug Store is a privately owned pharmacy located in Petersburg.

Darin Judy is a manager of the drug store. Emily Judy is the president of
Judy’s Drug Store Inc. and works as a pharmacist. Arbaugh and Watts both work there as pharmacists. Judy’s Drug Store and the identified individuals have paid $2 million to settle accusations that the drug store repeatedly filled prescriptions for controlled substances, such as oxycodone and hydromorphone, not written for legitimate medical purposes. The pharmacists filled these prescriptions outside the scope of professional practice, the announcement said.

“This is another important step in our efforts to prevent prescription painkillers from being diverted and used for improper purposes,” said Ihlenfeld. “We used both our criminal and civil authority to accomplish our mission in this case, and we would have sought criminal charges against one of the pharmacists involved had he not passed away.”

The federal investigation into Judy’s Drug Store arose after the U.S. Attorney’s Office obtained a conviction against Hardy County physician Rajan Masih in 2011.

Masih was convicted of distributing controlled substances for purposes other than legitimate medical ones and outside the scope of professional practice. He wrote many of the prescriptions for controlled substances improperly filled by Judy’s Drug Store.

“Today’s settlement serves as a warning to those who are driven by greed that distracts them from their responsibilities to the very communities in which they live and work. The citizens of Grant County should be able to walk their streets and go about daily activities with their families without fear or exposure to drug-related activity resulting from suspect dispensing of controlled substance pharmaceuticals,” said Karl Colder, special agent in charge of the U.S. Drug Enforcement Administration Washington, D.C., Field Division.

Assistant U.S. Attorney Alan McGonigal handled the matter in coordination with the Office of the Inspector General of the DEA.

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