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News
Release
February 16, 2005
New Castle, Virginia Pharmacist Indicted
Daniel Ray Lineberry, 55, of Salem, Virginia, a Pharmacist and Owner
of Craig County Medical Center Pharmacy in New Castle, Virginia was indicted
on 36 counts including: One Count of mail fraud; twenty-five counts of
illegal distribution of a Schedule III controlled substance, and one
count of illegal distribution of a schedule IV controlled substance;
nine counts of tampering with consumer products and labeling affecting
interstate commerce; and one count of Health Care Fraud.
These charges arose out of a complaint received by the Virginia State
Police Drug Diversion Unit in August 2004. A citizen in New Castle,
Virginia became concerned when her husband, who suffers from Alzheimer’s
disease, became increasingly violent. She contacted the State Police
after noting the medication her husband had received from Lineberry
did not look right. These pills were sent to the state forensics laboratory
and it was determined Lineberry had substituted the medications Seroquel,
Aricept, and Zoloft, that were supposed to be dispensed and taken by
the patient, with two over-the-counter products—a Vitamin B2
product called riboflavin and Lysine, an amino acid compound. On another
occasion, Prozac had been substituted for Zoloft. Additional substitutions
were discovered, leading to a search warrant which was conducted on
August 20, 2004. Lineberry’s license to dispense medications
was summarily suspended on this date. As a result of the search warrant
and media coverage, many additional patients came forward with misbranded
medications. These included substituting acetaminophen for Norvasc
and Tylenol for Hydrocodone. Lineberry has been on active probation
with the Virginia Department of Health Professions since 1999 for two
other product substitutions he had committed.
Another part of the scheme involved Lineberry filling, and continually
re-filling medication for patients---that he did not have authorization
from a qualified health care provider to do. These refills included
a large number of hydrocodone prescriptions. Hydrocodone is a painkiller
and a schedule III controlled substance. Lineberry engaged in the same
scheme with drugs like Xanax, Valium, and Darvocet, all schedule IV
controlled substances.
Additionally, Lineberry submitted fraudulent health care claims to
the Virginia Medicaid Program and to Anthem Blue Cross/Blue Shield
for payment. Some of these were “phantom” billings for
patients of a group home. The home was decertified in 2001 and the
patients were moved to a Roanoke facility. Lineberry knowingly continued
to bill the Virginia Medicaid program for over $90,000 in medication
not authorized and not received by the group home patients through
August 2004.
If convicted of all the charges, Lineberry faces a maximum prison term of 133
years and a fine of $9,000,000.
The investigation was conducted by the Virginia State Police Drug Diversion
Unit, U.S. Department of Health and Human Services - Office of Investigations,
Virginia Department of Health Professions, Food and Drug Administration-Office
of Criminal Investigation, Richmond Office of Drug Enforcement Administration
- Diversion Unit, Anthem Blue Cross Blue Shield Financial Investigation Unit,
Virginia Attorney General - Medicaid Fraud Control, United States Postal Inspection
Service and the Health Care Fraud Investigator for the U.S. Attorney’s
Office. Assistant United States Attorney C. Patrick Hogeboom III is prosecuting
the case. For further information, please contact the United States Attorney
Office.
A Grand Jury indictment is only a charge and not evidence of guilt and the defendant is entitled to a fair trial with the burden on the government
to prove guilt beyond a reasonable doubt.
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