Jury Convicts Couple of Operating a Pill Mill in Waverly

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CINCINNATI—A U.S. District Court juryhas convicted a West Portsmouth, Ohio couple of operating Ohio Medical and PainManagement LLC in Waverly, Ohio as a continuing criminal enterprise, a crimepunishable by at least 20 years and up to life imprisonment.
Carter M. Stewart, United StatesAttorney for the Southern District of Ohio; Robert L. Corso, Special Agent inCharge, Drug Enforcement Administration (DEA); Edward J. Hanko, Special Agentin Charge, Federal Bureau of Investigation (FBI); Waverly Police Chief LarryRoe; and Scioto County Sheriff Marty Donini announced the verdict that wasreturned today following three days of deliberation after a 10-day trial beforeSenior U.S. District Judge Sandra S. Beckwith.
In addition to conviction on the chargeof operating a continuing criminal enterprise, the jury convicted clinic ownerNancy Sadler, 49, of West Portsmouth, Ohio and her husband, Lester Sadler, aka“Ape,” 56, of one count each of conspiracy and maintaining a premises for thepurpose of distributing drugs. The jury also convicted Nancy Sadler of onecount of wire fraud and one count of money laundering for the illegal purchaseand sale of 40,200 units of hydrocodone in order to purchase a convertible.Each of those crimes is punishable by up to 20 years in prison.
Judge Beckwith remanded the Sadlers tothe custody of the U.S. Marshals Service and ordered them held pendingsentencing. She will schedule sentencing following a pre-sentence investigationby the court.
The government is seeking forfeiture of$1.8 million based on testimony presented during the trial that the Sadlerswere making $900,000 a year at the clinic.
Testimony presented during the trialproved that the clinic operated as a “pill mill” by selling prescriptions forcontrolled substances (usually oxycodone), without a legitimate medical needfor the prescriptions. Many of the prescriptions were openly sold and diverted.
Testimony was presented during the trialthat the clinic was usually open three or four days per week. New customerswere normally charged $180 for the initial visit. Returning customers werecharged $125 to $150 per visit. Witnesses testified that the customers receivedno genuine examination by a physician. Instead, the clinic staff would oftenprepare the medical charts and prescription forms in advance, sit the customersdown with the physician, and then the physician would sign the prescription ather desk.
Three others charged in the indictmentthat was returned in August 2010 have pleaded guilty. Lisa Clevenger, 50, ofStoutsville, and a sister of Nancy Sadler pleaded guilty on February 29, 2012to one count of maintaining drug-involved premises. Lester Sadler’s father,James Sadler, 80, of West Portsmouth, pleaded guilty on December 20, 2011 toone count of conspiracy. Brenda Banks, 59, of Columbus, Ohio, formerly aphysician at the clinic, pleaded guilty on April 30, 2012 to one count ofacquiring or possessing a controlled substance through deception, punishable byup to four years in prison. All three are awaiting sentencing.
“This case grew from an on-goinginvestigation by federal, state, and local law enforcement and regulatoryagencies into the problem of prescription drug diversion,” Stewart said.“Prescription drug diversion and the related crimes that accompany it areemerging as an increasing threat to the region’s safety.”
“This indictment underscores DEA’scommitment to bring to justice those who would betray their promise to providelegitimate medical care to the community,” Corso said. “The indictment allegesthat the defendants in this case benefited financially on the backs of other’smisery. When DEA uncovers evidence of this type of illegal diversion oflegitimate pharmaceuticals by health care professionals, we will treat them inthe same manner as any other street dealer peddling cocaine or heroin.”
Stewart commended the agencies that areparticipating in the ongoing investigation including the U.S. Department ofHealth and Human Services, Office of Inspector General; the Ohio State Board ofPharmacy; Pike and Scioto County sheriffs’ offices in Ohio; Portsmouth PoliceDepartment; the Lewis and Greenup County sheriff’s offices in Kentucky; theRussell, Kentucky Police Department; the Kentucky Department of Public Health,Drug Control and Professional Practices; and the Kentucky State Police. Stewartalso commended Cincinnati-based Assistant U.S. Attorneys Tim Mangan and TimOakley, who are prosecuting the case.