PHILADELPHIA (KYW Newsradio) — Federal prosecutors have charged the former owner of a Northeast Philadelphia drug store with knowingly selling opioids for illegal use. The criminal charges follow a civil suit against the pharmacist earlier this year.
On Wednesday, the U.S. Attorney’s Office announced conspiracy and fraud charges against 62-year-old Mitchell Spivack, the long-time owner of Verree Pharmacy in the Fox Chase section of the city. The small neighborhood drug store purchased more of the highly addictive drug oxycodone than any other pharmacy in the state. Prosecutors say an investigation showed it then sold them, despite red flags that they were being diverted for illegal use — including blatantly forged prescriptions for extreme doses — or in combination with other drugs used in "cocktails" favored by people addicted to painkillers, and paid for in cash.
They allege he also billed Medicare and other insurers for prescriptions he never filled.
“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “Diversion of these drugs perpetuates the existing opioid crisis that killed 5,438 Pennsylvanians last year.”
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In January, the U.S. attorney sued Spivack for the same alleged practices and, in March, added three of his former employees to the suit. U.S. Attorney Jennifer Arbittier Williams said her office will use every resource at its disposal to track down and pursue all individuals responsible.
“Pharmacies and pharmacists engage in the deepest violation of the community’s trust when they exploit their access to opioids and other controlled substances and illegally dispense the drugs for their own financial gain,” said Williams. “It is even more disturbing when pharmacists take advantage of their position of trust by fraudulently billing Medicare and other federal health care programs for bogus prescription drugs.”
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Williams credited the investigative teamwork of the U.S. Drug Enforcement Administration, the Office of Inspector General, U.S. Department of Health and Human Services, and the Pennsylvania Attorney General’s Office.
If convicted, Spivack faces a maximum possible sentence of five years in prison, a $250,000 fine, three years of supervised release, a special assessment and an order of restitution.
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Efforts to reach the defendant for comment were unsuccessful. Anyone with information regarding Verree Pharmacy or any other health care fraud allegation is encouraged to contact the inspector general hotline at 800-HHS-TIPS.