Philadelphia Pharmacy Pays $165,000 to Resolve Allegations of Failing to Maintain Proper Inventory and Documentation of its Controlled Substances

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Fountain Hill Pharmacy will pay $165,000 to resolve allegations that it failed to comply with various record-keeping requirements for controlled substances.

Fountain Hill Pharmacy, a Philadelphia pharmacy wholly owned by pharmacists Nicholas Chaffier and Tracy Chaffier, is a registered retail pharmacy authorized to purchase and dispense Schedule II-V controlled substances. The settlement announced today resolves allegations that between October 2019 and November 2022, Fountain Hill Pharmacy failed to maintain complete and accurate records of controlled substances and failed to take a biennial inventory in violation of the Controlled Substances Act (“CSA”), and specifically, 21 C.F.R. §§ 1304.21(a) and 1304.11(d). Specifically, the settlement resolves allegations that Fountain Hill Pharmacy failed to maintain appropriate inventories of controlled substances including Oxycodone 5mg, Oxycodone 15mg, Oxycodone 30mg, Oxycodone APAP 5mg, Oxycodone APAP 7.5 mg, and Oxycodone APAP 10 mg.

In addition to the $165,000 penalty, Fountain Hill Pharmacy is also now subject to a number of monitoring requirements, including the reporting of controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration (DEA), as well as sharing Standard Operating Procedures pertaining to all aspects of purchasing, storing, and distributing controlled substances. In addition, Fountain Hill Pharmacy is responsible for initiating and conducting appropriate training pertaining to DEA regulations for all current and newly hired employees responsible for handling and/or having access to controlled substances.

“Controlled substances, especially opioids, pose extraordinary risks to communities in this district,” said U.S. Attorney Romero. “When pharmacies are granted the privilege of purchasing controlled substances, they also accept the significant responsibility of ensuring that controlled substances are used for a legitimate, medical purpose. As a result, they must maintain the records necessary for accountability and transparency. When this does not happen, we will work with our law enforcement partners, and use all available enforcement tools, to hold these pharmacies responsible.”

“Pharmacies are entrusted with the dispensing of powerful prescription painkillers such as oxycodone. With that responsibility comes the obligation to properly safeguard and keep proper inventory over these same drugs,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “Civil settlements and the monitoring requirements imposed against Fountain Hill Pharmacy help to ensure that these safeguards are met.”

This investigation was conducted by the Drug Enforcement Administration’s Philadelphia Field Division. For the United States Attorney’s Office, Assistant United States Attorney Deborah W. Frey, and Auditor Andrew Schobert.