A Miami woman, co-owner of the pharmaceutical distributor Atlantic Biologicals Corporation, has agreed to a $500,000 settlement over allegations her company failed to report suspicious controlled substance orders. The U.S. Attorney's Office for the Southern District of Texas announced that 64-year-old Karen Moody negotiated the settlement to resolve accusations related to ineffective monitoring and prevention of drug diversion.
According to the press release, Atlantic Biologicals Corporation has distribution centers in Miami and Morrisville, North Carolina, operating a DEA-registered distribution of Schedule II-V controlled substances under its division, National Apothecary Solutions (NAS). From 2018 to at least March 2023, NAS reportedly distributed massive quantities of opioids to pharmacies in the Houston area, a region known for its problematic black market for such drugs.
Under federal law, companies like NAS are responsible for maintaining robust controls to prevent drugs from being diverted from legal to illicit channels. However, allegations stipulate that over five years, NAS failed to flag or report any suspicious orders, despite handling at least 128 that were categorized as unusually large or deviating significantly from typical patterns. "NAS is the latest example of a drug wholesaler profiting at the expense of Houstonians, fueling the opioid crisis by allowing millions of highly addictive controlled substances to slip into the wrong hands," Special Agent in Charge Brian C. Leardo of the DEA's Houston Division explained, concerned about the rise in drug overdose deaths and related crimes.
During the investigation, which was led by the DEA, records showed the vast majority of NAS's opioids were hydrocodone/acetaminophen and oxycodone, both in their highest strengths and dangerously prone to diversion. Aside from opioids, NAS also dealt heavy volumes of other drugs commonly abused, such as carisoprodol, alprazolam, and promethazine with codeine. The Assistant U.S. Attorney Jill O. Venezia took on the prosecution duties for this case, according to the U.S. Attorney's Office.
This settlement serves as a warning, as stated by Leardo, that the DEA remains committed to holding companies accountable for lax controls that exacerbate the opioid epidemic. With efforts like these, the hope is to turn the tide in the battle against widespread drug addiction and the resulting community harm in Houston and beyond.
