United States of America v. Thomas K. Weir

Cookesville, Tennessee, criminal defense lawyers represented the Defendant charged with conspiracy to distribute and dispense controlled substances.

Reported by Kent Morlan

Thomas K. Weir, 65, of Celina, Tennessee, the majority owner of Oakley Pharmacy, doing business as Dale Hollow Pharmacy and Clay County Xpress Pharmacy, conspired to distribute and dispense controlled substances, conspiracy to commit health care fraud, and conspiracy to violate the Anti-Kickback Statute.

"The defendants turned trusted community pharmacies into engines for opioid distribution and health care fraud," said United States Attorney Braden H. Boucek. "Rather than serving patients and protecting public health, they ignored clear warning signs, fueled the unlawful distribution of dangerous drugs, and billed taxpayer-funded health care programs for the privilege. Today's sentence, along with the forfeiture of the property used to facilitate these crimes, demonstrates that those who choose profit over patient safety will be held accountable."

Co-defendants William L. Donaldson, 65, former owner and pharmacist of Dale Hollow Pharmacy; Pamela Spivey, 55, co-owner of Xpress Pharmacy; and Charles Robert "Bobby" Oakley, 74, of Manchester, Tennessee, a minority owner of Dale Hollow Pharmacy, previously pleaded guilty and were sentenced for their roles in the scheme. Donaldson was sentenced to 24 months in prison. Oakley and Spivey were each sentenced to three years of probation and ordered to pay criminal restitution.

According to court records, the conspiracy operated for approximately five years and involved the unlawful dispensing of controlled substances and the submission of fraudulent claims to Medicare and TennCare.

Between 2014 and 2019, the conspirators operated Dale Hollow Pharmacy and Xpress Pharmacy in Celina, Tennessee, as sources of controlled substances for patients despite numerous red flags indicating abuse, diversion, and prescriptions issued outside the usual course of professional practice and without a legitimate medical purpose. Patients routinely traveled long distances, often in groups, to obtain controlled substances from the pharmacies.

In May and June 2016, Drug Enforcement Administration diversion investigators inspected Dale Hollow Pharmacy. The following year, Weir and others entered into a Memorandum of Agreement with the DEA addressing violations of federal regulations governing the dispensing of controlled substances. Despite that agreement, dispensing practices continued, and the volume of controlled substances dispensed by both pharmacies increased, along with clear signs of abuse and diversion.

The conspirators also submitted false and fraudulent claims to Medicare Part D plans and TennCare for controlled substances dispensed to beneficiaries, including medically unnecessary combinations of highly abused drugs. To increase prescription volume, the conspirators engaged in a kickback scheme that included paying patient co-payments, distributing a fictitious currency known as "Monkey Bucks" that could be redeemed for cash, and paying patients cash to fill prescriptions that were subsequently billed to Medicare and TennCare.

“Today’s sentencing represents another important step in our ongoing efforts to combat health care fraud and opioid abuse,” said Kelly Blackmon, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “Our collaboration with federal, state, and local law enforcement partners helps ensure that those responsible are held accountable, while safeguarding our communities and protecting the integrity of federal health care programs.”

"Pharmacy owners like Mr. Weir who exploit the most vulnerable and seek to profit from addiction must be held to account; we've lost too many Americans to opioid abuse," said Special Agent in Charge Jim Scott, head of DEA’s Louisville Field Division. “It’s vitally important that pharmacies operate within the laws designed to prevent diversion of medications that carry a high potential for abuse.”

“Cases like these reflect the nonstop, coordinated efforts of federal, state, and local partners to protect innocent patients and tax dollars,” said David Rausch, Tennessee Bureau of Investigation Director. “We will continue working around the clock to dismantle schemes that endanger public health, and we will not relent in ensuring that those who exploit vulnerable communities for profit are brought to justice.”

As part of his sentence, Weir was ordered to forfeit real property used to facilitate the offenses, including the pharmacy building and an associated warehouse, as well as a money judgment exceeding $700,000.

Two pharmacists-in-charge associated with the pharmacies, John Polston, 64, of Tompkinsville, Kentucky, and Michael Griffith, 41, of Mount Juliet, Tennessee, were charged separately, pleaded guilty, and cooperated with the government's investigation and prosecution. They are scheduled to be sentenced in July.

This case was investigated by the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation, with assistance from the Clay County Sheriff's Office and the Celina Police Department.

Plea of guilty to Count 1, 2, and 7 of the Indictment. Counts 3-6 of the Indictment are dismissed. Imprisonment for 24 months' custody of the Bureau of Prisons. The defendant shall surrender for service of sentence at the institution designated by the Bureau of Prisons before 2 p.m. on 9/18/2026. Two years supervised release, with conditions. $300 special assessment. $1,419,974.00 Restitution. Forfeiture has been ordered in the amount of a money judgment for $716,395 and his interest in Dale Hallow Pharmacy.