Fountain Hill Pharmacy Settles for $165K Over Alleged Record-Keeping Violations

Settlement, fines© DAPA Images / Canva

PHILADELPHIA, PA — Fountain Hill Pharmacy has agreed to pay a settlement of $165,000 following allegations of non-compliance with record-keeping requirements for controlled substances.

The pharmacy, owned entirely by pharmacists Nicholas Chaffier and Tracy Chaffier, is registered to purchase and dispense Schedule II-V controlled substances. The settlement resolves claims that between October 2019 and November 2022, Fountain Hill Pharmacy failed to maintain complete and accurate records of controlled substances and neglected to conduct a biennial inventory, violating the Controlled Substances Act.

Specifically, the pharmacy was accused of not keeping appropriate inventories of several controlled substances, including different dosage levels of Oxycodone and Oxycodone APAP.

In addition to the monetary penalty, Fountain Hill Pharmacy will now be subject to various monitoring requirements. These include reporting controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration (DEA). The pharmacy must also share its standard operating procedures related to purchasing, storing, and distributing controlled substances. Furthermore, the pharmacy is required to conduct relevant training on DEA regulations for all employees who handle or have access to controlled substances.

U.S. Attorney Jacqueline C. Romero expressed concern over controlled substances’ potential risks, especially opioids, to local communities. Romero stated that pharmacies granted the privilege of purchasing these substances must ensure their legitimate medical use and maintain necessary records for accountability and transparency.

Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Field Division, emphasized that pharmacies are trusted with dispensing powerful prescription painkillers like oxycodone and are obligated to safeguard and maintain proper inventory of these drugs. He asserted that civil settlements and imposed monitoring requirements help ensure these safeguards are met.

The DEA’s Philadelphia Field Division conducted the investigation into Fountain Hill Pharmacy. Assistant United States Attorney Deborah W. Frey and Auditor Andrew Schobert represented the United States Attorney’s Office.

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