Money Before Medicine


On its seventh day of deliberations, a federal jury on Thursday, June 24 found Kansas  doctor Stephen Schneider and his nurse wife Linda Schneider guilty of conspiring to profit from illegally prescribing painkillers to patients, many of whom later died. The jury also found the Schneiders guilty on five counts of unlawfully writing prescriptions and on 11 health care fraud counts. The jury found Linda Schneider guilty of 15 money laundering charges.


Assistant U.S. Attorney Tanya Treadway prosecuted the case, which consumed eight weeks of trial. In a 34-count indictment, the Schneiders were charged with conspiring to illegally distribute prescription drugs that contributed to 21 deaths, fraud, and money laundering. The prosecution put on evidence of 176 overdoses and 68 deaths related to the pill mill.


This was a case of “money before medicine,” Tanya Treadway said. According to the prosecution, about half of the 10,000 patients treated at the Schneider Medical Clinic received pain medication. The clinic was open 11 hours a day every day, had 14 exam rooms and  scheduled patients 10 minutes apart.  Prosecutors allege the clinic made $7 million in a little over four years through health care fraud. The Schneiders pocketed about $1.5 million. The prosecution put on evidence of 176 overdoses and 68 deaths related to the pill mill.


Dr. Schneider’s attorney, reportedly supported by the advocacy group Pain Relief Network that advocates for the right to pain treatment, argued that Dr. Schneider acted “with a pure heart.” He said that “what [Dr. Schneider] did with his patients, he did so innocently, he did so honestly, and he did so courageously.”

 

Curiously, Dr. Schneider chose to drive a bright yellow hummer emblazoned with skull and crossbones to and from the pill mill on a daily basis. I wonder what kind of message he was trying to send? Was he  in a state of deep denial or did he have  so little fear of ever being prosecuted for his pill peddling that he felt bulletproof? We will probably never know, but I am sure the vehicle represents to the victims everything that was wrong with the Schneiders and their so called medical practice.


Sentencing has not yet been set. The Schneiders could face up to a life sentence.  The Schneiders also will stand trial in several civil wrongful death lawsuits which have been filed against them.
 

 We applaud the courage of Tanya Treadway in stepping up to the plate to prosecute this case.  It takes hard work and effort to bring persons such as these to justice.  Prosecutions such as these must continue to happen. Pill mill operators need to go to jail  just like persons who peddle street drugs go to jail. Pill mill operators must also be held liable for monetary damages for the devastation that they are causing while lining their pockets with blood money.Hopefully, the combination of vigorous criminal and civil prosecution will stem the tide of prescription drug overdose deaths.
 

Houston Pill Mills targeted

The Houston Chronicle recently reported a story of  alleged pill mills (S&G Medical Clinic, Texas Medicine Direct, and Uptown Medical Clinic) which stand accused of distributing large quantities of Vicodin, Xanax and Soma without a valid medical purpose.

Dr. Nancy Sellars of Houston has been charged with engaging in organized crime and practicing medicine without a license at S&G Medical Clinic at 9110 Jones Road.  See a copy of the Complaints [PDF]. Non-licensed personnel were allegedly filling out pre-signeded medical prescriptions for a variety of medicines, the majority of which were the commonly abused "cocktail" of Vicodin, Soma and Xanax.  Dr. Sellars was disciplined by the Texas Medical Board in 2001 after pleading guildy to fraudulenty prescribing controlled substances.  See a copy of the Agreed Order [PDF]. 

A non-physician , Barry Ransom, 51, the owner of Texas Medicine Direct on Interstate 10, has been charged with engaging in organized crime through knowingly delivering a prescription for other than a valid medical purpose in the course of professional practice.  See a copy of the Complaint [PDF].  According to public records, Ransom has numerous prior convictions, including a conviction for possession of a weapon (1981), controlled substance felony convictions (1983, 1986), a conviction for possession of marijuana (2007), and a charge for driving while intoxicated, dismissed because Ransom was convicted on another count (1981).  In April, he was charged with yet another drug offense.

 According to the complaint against Dr. Sellars,

  • The "cocktail" Vicodin, Soma and Xanax are the most commonly abused narcotics in the houston area.

  • Vicodin abuse has surpassed the illcit use of marijuana in the Greater houston area.

  • The Harris County Medical Examiner's Office has directly attributed 111 deaths from June 2009 to December 2009 as related to the overdose of the narcotics included in the "cocktail."

  • At least two of the deaths have been directly linked to prescription sissued by Dr. Christina Clardy (Medical Director of S&G Clinic and Uptown Medical Clinic).

     

Dr. Clardy, 61, who lives in West University, was charged in March with engaging in organized crime at S&G Clinic and the Uptown Medical Clinic.  See a copy of the Complaint [PDF].

According to the Complaint against Dr. Christina Clarda,

  • Christina Clardy admitted that she knew that the prescription forms that she signed for uptown Medical Clinic were not used for medical purposes

  • During the 11 days the Uptown Medical Clinic was open, they had seen 171 patients

  • The patients came from all over the country, including New York, Arkansas, Louisiana, Wisconsin and Texas

  • Over 95% of the patient's diagnosis was "lumbar"

  • There were no refills cirlced on the prescriptions which creates a monthly client for the clinic, which is not typical for a therapeutic medical purpose

  • The clinic did not accept medical insurance, Medicare or Medicaid and only accepted cash as a form of payment, which is a common scheme for a clinic operating for purposes of illicit distribution of prescription drugs to stay off the radar and prevent being shut down by the Dexas Department of Public Safety who regulates such businesses

According to authorities, the clinics were responsible for illegally distributing more than 3 million tablets of Vicodin, Xanax and Soma in 2009, and before they recently shut down, they were on pace to distribute 5 million this year.  The two operations grossed over $1.4 million last year alone, according to Deutsch.

We are relieved to see that law enforcement is addressing the rampant pill mill problem which exists in Houston and throughout Southeast Texas.