Pill Mill-Mori Dalton Indictment

8/9/2019 Pill Mill-Mori Dalton Indictment

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M A Y 2 p 2 0 1 5

KSC: USAO# 2015R00356

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MARYLAND

UNITED STATES OF AMERICA

v.

RIMINAL NO.

ALEX MORI, and

Conspiracy to Distribute and Possess

THOMAS DALTON,

ith Intent to Distribute Oxycodone, 21

U.S.C. § 846)

Defendants.

.oOo.

INDICTMENT

COUNT ONE

The Grand Jury for the District of Maryland charges that:

Introduction

1.

Beginning in or about November 2013 through in or about May 2015, Defendants

ALEX MORI and THOMAS DALTON owned and operated First Priority Heath Care, LLC

( First Priority ), located at 8176 Lark Brown Road Suite 101, Elkridge, Maryland, a purported

pain management clinic located within the District of Maryland. In reality, First Priority operated

as a pill mill. A pill mill is a physician's office, clinic, or health care facility that routinely

engages in the practice of prescribing and dispensing controlled substances outside the scope of

professional practice and without a legitimate medical purpose. In July 2013, First Priority Health

Care was incorporated in Delaware.

2.

In or about November 2013 MORI and DALTON hired NURSE

PRACTITIONER 1 to serve as the prescriber at First Priority. In or about December 2014, MORI

and DALTON hired DOCTOR 1 to serve as the prescribing physician at First Priority, and entered

into a one-year contract with DOCTOR 1.


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3.

Defendant MORI funded First Priority and assisted with the day-to-day operations,

and defendant DALTON ran the day-to-day operations at First Priority. They hired and

supervised employees, and approved and directed financial transactions on behalf of the company.

They also divided the profits from the businesses. CO-CONSPIRATOR 1 worked as the office

manager/receptionist at First Priority. NURSE PRACTITIONER 1 was the prescriber at First

Priority until August 2014. DOCTOR 1 has been the prescribing physician at First Priority since

December 2014.

4.

MORI and DALTON both worked to recruit distributors and runners to visit

First Priority so that they would profit from the cash fees charged for an office visit. A runner is

an individual who is recruited by a distributor to enter pill mill clinics with fictitious complaints of

pain in order to obtain prescriptions for Schedule II controlled substances, primarily oxycodone.

Runners typically then filled the prescription and gave the oxycodone tablets they received to the

distributor. Runners were typically paid in either cash or oxycodone tablets for their services.

The distributors then generally sold the pills for a profit.

5.

MORI and DALTON also bought and sold oxycodone pills for a profit, including

to and from those runners and distributors who obtained prescriptions from First Priority.

Controlled Substances — General Terminology

6.

The Controlled Substances Act governs the manufacture, distribution, and

dispensing of controlled substances in the United States, including narcotics that are prescribed by

physicians and other licensed health care providers. The Controlled Substances Act and its

implementing regulations set forth which drugs and other substances are controlled substances.

Controlled substances are assigned to one of five schedules, Schedule

I II III

IV, or V, depending

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on their potential for abuse, likelihood of physical or psychological dependency, accepted medical

use, and accepted safety for use under medical supervision.

7. Title 21, United States Code, Section 841(a)(1), provides that [e]xcept as

authorized by this subchapter, it shall be unlawful for any person to knowingly or intentionally

. . . manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or

dispense, a controlled substance.

8.

Title 21, United States Code, Section 802(10), provides that the term dispense

meant to deliver a controlled substance to an ultimate user . . . by, or pursuant to the lawful order

of, a practitioner, including the prescribing and administering of a controlled substance and the

packaging, labeling, or compounding necessary to prepare the substance for such delivery.

9.

Title 21, United States Code, Section 802(11), provides that the term distribute

means to deliver (other than by administering or dispensing) a controlled substance or a listed

chemical.

10.

Title 21, United States Code, Section 802(21) provides that the term practitioner

means a physician . . . or other person licensed, registered, or otherwise peimitted . . . to

distribute [or] dispense . . . a controlled substance in the course of professional practice.

11.

Title 21, Code of Federal Regulations, Section 1306.04, provides, among other

things, that a prescription for a controlled substance is valid if it is prescribed for a legitimate

medical purpose by an individual practitioner acting in the usual course of his professional

practice. Moreover, an order purporting to be a prescription issued not in the usual course of

professional treatment or in legitimate and authorized research is not a valid prescription within

the meaning and intent of Title 21, United States Code, Section 829, and the person knowingly

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outside the scope of the prevailing standards of professional practice and without a legitimate

medical purpose.

16.

Oxycodone is frequently abused because it is a highly addictive narcotic that gives

the user a high equivalent to heroin. Users who abuse pills containing oxycodone frequently do

so by smoking, chewing, dissolving, injecting, or crushing the pills and then ingesting the

substance. These methods result in a more immediate high because they allow the active

ingredient to more quickly enter the user's system. Abuse of oxycodone can lead to overdose

and, in some cases, death. The risk of overdose and death is increased if oxycodone is abused

along with certain other prescribed controlled substances, such as Alprazolam. Similar to other

illegal narcotics, oxycodone is sold by drug dealers to addicted users, typically for approximately

$1 per milligram.

THE CHARGE

17.

From at least July 2013, up to and including the date of this Indictment, in the

District of Maryland, the defendants,

ALEX MORI and

THOMAS DALTON

did knowingly and willfully combine, conspire, confederate, and agree with others known and

unknown to the Grand Jury, to knowingly, intentionally, and unlawfully distribute and possess

with intent to distribute a mixture or substance containing oxycodone, also known as Oxycontin,

Percocet, Roxicodone, Roxicet, and Endocet, a schedule II controlled substance, in violation of

Title 21, United States Code, Section 841(a)(1).

21 U.S.C. §846

OBJECTS OF THE CONSPIRACY

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18. It was the object of the conspiracy to profit from the illegal distribution of

oxycodone.

19.

It was further the object of the conspiracy to have prescriptions for oxycodone

issued to individuals without a legitimate medical need so that they could either use them to satisfy

an addiction or to re-sell the pills for a profit.

20.

It was further the object of the conspiracy to charge hundreds of dollars for each

prescription and require customers to pay cash to obtain their prescriptions. Members of the

conspiracy also profited from this by charging individuals to fill the prescriptions at area

pharmacies and selling the oxycodone pills obtained from the prescriptions on the street.

21.

It was further the object of the conspiracy to recruit new members of the conspiracy

to serve as additional runners and as the distributors who would bring those runners to the pill mill

clinics, in order to generate larger profits.

MANNER AND MEANS OF THE CONSPIRACY

22.

Among the manner and means used by the defendants and other co-conspirators to

carry out the object of the conspiracy were the following:

a.

It was part of the conspiracy that members established a pill mill clinic in

Maryland to provide drug addicts and drug dealers with a place to obtain fraudulent prescriptions

for oxycodone.

b.

It was part of the conspiracy that members who were operating the pill mill

clinic hired doctors and other prescribers to write prescriptions for oxycodone at that clinic and

encouraged the prescribers to limit the extent to which they checked for legitimate medical

problems before prescribing oxycodone.

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c.

It was part of the conspiracy that members who were operating pill mills

used recruiters to identify and hire doctors to prescribe oxycodone.

d.

It was part of the conspiracy that members who were operating pill mills

paid recruiters a recurring fee (during the teiiii of employment) for any doctors employed by the

pill mill clinics.

e.


clinic required runners to have certain paperwork, generally an MRI report and a prescription

history, in order to include that in the paperwork in the patient's file to support a false claim that

there was a medical need for the prescription of oxycodone.

f.

It was part of the conspiracy that members who were operating pill mill

clinics created false paperwork for runners who were unable to obtain MRI reports or prescription

histories that would provide a basis for requesting a prescription for oxycodone.

g.

It was part of the conspiracy that members sought to create fake pharmacies

and radiology centers that could verify fake MRI reports and prescription histories.

h.


clinic charged runners hundreds of dollars in cash to obtain prescriptions for oxycodone.

i.

It was part of the conspiracy that members kept the profits from pill mill

operations and the sales of oxycodone in cash.

J.

t was part of the conspiracy that members conducted transactions and paid

debts in cash.

k.

t was part of the conspiracy that members also fronted the office visit and

pharmacy costs to runners and distributors with the understanding that they would be re-paid later.

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1

t was part of the conspiracy that members recruited additional distributors

and runners — including those going to other pill mill clinics — in order to increase the number of

prescriptions sold and the profits.

m.

It was part of the conspiracy that members took steps to circumvent the state

prescription drug monitoring programs in order to ensure that drug addicts and drug dealers would

not be prevented from obtaining multiple prescriptions from different doctors at the same time.

n.

It was part of the conspiracy that members took multiple runners to pill mill

clinics in order to obtain supplies of oxycodone pills.

o.

It was part of the conspiracy that distributors and runners obtained

prescriptions from multiple pill mill clinics.

p.

It was part of the conspiracy that runners filled prescriptions for oxycodone

from the pill mill clinic regularly at pharmacies in Maryland and other states in order to avoid

detection by the state PDMPs.

q.

It was a part of the conspiracy that members kept track of which pharmacies

had supplies of oxycodone and were willing to fill prescriptions for runners.

r.

It was part of the conspiracy that members verified prescriptions that they

knew were illegitimate when pharmacies would call the pill mill clinic.

s.

It was part of the conspiracy that members created fraudulent prescriptions

for oxycodone to fill at area pharmacies.

t.

It was part of the conspiracy that members sold oxycodone pills for a profit.

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OVERT ACTS

In furtherance of this conspiracy and to effect and accomplish the objects of it, one or more

of the defendants or conspirators, both indicted and unindicted, committed, among others, the

following overt acts in the District of Maryland and elsewhere:

1.

In or about July 2013, MORI incorporated First Priority Health Care in Delaware in

the name Alex Mar.

2.

In or about November 2013 MORI and DALTON hired NURSE

PRACTITIONER 1 to be the prescriber at First Priority Health Care.

3.

On or about October 27, 2014, DALTON and MORI discussed their need for a

doctor recruiter because a potential doctor had backed out due to concern about writing

prescriptions for oxycodone.

4.

On or about October 30, 2014, DALTON and MORI arranged for DALTON to

travel with other runners to obtain and fill prescriptions for oxycodone and MORI agreed to pay

DALTON' s rent until he could get the prescription filled.

5.

In or about October and November 2014, DALTON interviewed several doctors to

serve as the prescribing physician at First Priority Health Care. During an intercepted

conversation, DALTON said, I got two more interviews this week, only one of 'em knows the

deal ... so ... the other one I'd have to talk 'em into it....

6.

On or about December 7, 2014, DALTON planned to open multiple pill mill clinics

in order to make money quickly, despite the risks to those who were being prescribed oxycodone

without a medical need. During an intercepted conversation, DALTON explained, the plan's to

open as many as I can without telling....I messed up the first time because I thought that ... only

one would do that for me, now I know it wouldn't so I'm opening multiple ones to make a lot of

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money really fast.... When the individual on the other end expressed concern that these were

medications that people don't really need, DALTON said, let me explain it to you like a nigger

explained it to me, mother fuckers that go to the doctors are already on drugs, what we doin, we

pretty much save their fuckin' lives because, it might continue their habit, but we're keeping 'em

from fuckin' going to self-medicate, you know what I'm sayin? Like...if a nigga don't get a rip

he might go get some heroin and that's what everyone ODing...no one ever ODs on

oxycodone..... The individual on the other end asked about Tony and DALTON said, that's

the only one I think about every time.... When the individual on the other end expressed

concern that all these pills are just fuckin' killin' people and it's destroyin' lives and shit...,

DALTON said, I will make you a promise...when I say I'm openin' more, it's not to be forever,

it, it's just gonna be for a couple years, save up the money I need cause ... the more clinics I have,

the more money I can stack up.... If I didn't need to do this right now I wouldn't..., because, dog,

after a while your conscience starts fucking with you.... It fucked me the first 3 weeks we started

seein' people.... The one that really fucked me was... [a runner] ...I'm like damn, man, [that

runner] seems like he's getting..., and the individual on the other end said, like you're killin'

people.... They don't need it. They don't need this shit. DALTON said, Yup...I mean like

yea, the epidemic is crazy right now....

7.

On or about November 20, 2014, DALTON and CO-CONSPIRATOR 3 arranged

for CO-CONSPIRATOR 3 to bring four runners to First Priority and DALTON assured

CO-CONSPIRATOR 3 that the new doctor was on board and would prescribe what he needed.

8.

On or about December 6, 2014, DALTON arranged to make fake MRI reports for

runners coming the next day. During an intercepted conversation, DALTON complained that he

didn't want to make MRIs and then have people not show up the next day.

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9.

On or about December 9, 2014, DALTON instructed CO-CONSPIRATOR 1 to

ensure that the computer they were providing to DOCTOR 1 did not have any fake prescription

histories on it.

10.

On or about December 15, 2014, DALTON and MORI planned to set up a fake

pharmacy and radiology center in order to verify MRI reports and prescription histories for

runners. During an intercepted conversation, DALTON said, I'm gonna create my own

pharmacy and my own mother fucking radiology center you know what I'm saying. I'm not

gonna change the numbers that's on the page. You know what I mean? ... I'm using my own logo,

do it for 2 people a day and everything, that's what I'm gonna do. MORI said, You could sign

up a website and everything.... See, I mean say you go on Google and barn there it is, that's us.

11.

On or about December 16, 2014, DOCTOR 1 agreed to prescribe certain former

runners (who had left First Priority Health Care to go to another pill mill clinic) the same 112

oxycodone 30 mg pills that they were getting at the other clinic. During an intercepted

conversation, DALTON asked, if I offer for them to come back to us, can we continue what

they've been getting at the place in D.C.? DOCTOR I said, It depends on what it is, and

DALTON said, they were getting, uh, the Oxycodone 30 milligrams at 112. DOCTOR 1 said,

I mean yeah that's a reasonable amount. DALTON said that they would be at First Priority

shortly.

12.

On or about December 16, 2014, DALTON provided discounts to runners who

returned to First Priority from other pill mill clinics. During an intercepted conversation, MORI

said, Yeah, are you forgetting who the rudi tudi recruiter himself?...You done made three people

rich this year....Me, Donnie and Joyce (Laughs). DALTON and MORI also discussed the need

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for DOCTOR 1 to prescribe more oxycodone to patients. MORI said, Yeah, just be like, dude,

you know eight more could change us from one hundred patients to three hundred patients.

13.

On or about December 16, 2014, DALTON and MORI arranged to front runners

the cost of an office visit at First Priority. They also arranged to have a runner they did not trust

fill the prescription in their presence.

14.

On or about December 18, 2014, MORI arranged to have a customer pay him $270

for nine oxycodone pills that he had fronted her and agreed to sell her additional pills for $25 per

pill.

15.

On or about December 20, 2014, DALTON assured a runner that DOCTOR 1

would prescribe oxycodone 30 mg pills at the next visit.

16.

On or about December 22, 2014, DALTON coordinated a sale of oxycodone pills

to a customer and explained potential pharmacies where the customer might be able to fill his

prescription. During an intercepted conversation, DALTON said, they done for the month my

boy that works there told me straight up. The customer asked, oh yea? and DALTON said,

yup. the 100% done for the month he said yea we just got done for the month last week so they

done t̀il after the holidays.

17.

On or about December 22, 2014, DALTON arranged to pay CO-CONSPIRATOR

1 for his services at First Priority by providing him with 10 oxycodone pills instead of cash.

CO-CONSPIRATOR 1 then arranged to sell those pills to MORI.

18.

On or about December 28, 2014, DALTON assured a woman that the runner that

she bought pills from would get more oxycodone at his next visit to First Priority. DALTON said,

100 percent will...Yes, now, a trillion thousands trust me. DALTON asked about her

relationship with the runner and she explained, I buy shit from him sometimes.

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19.

On or about December 28, 2014, DALTON arranged to purchase an entire bottle of

oxycodone from a runner and sell it to another distributor.

20.

On or about December 30, 2014, MORI arranged to sell oxycodone 30mg pills to a

customer. The customer asked, I mean how much you want for 'em? and MORI said, The 3 ...

5. The customer complained about the price and MORI said, It's Christmas, it's Christmas and

New Year's, shipping is completely fucked up, nobody is getting anything, no pharmacies are

getting

ll the pharmacies have already hit their quota for the year, so they were not allowed

to pick up anything until the 1st

This is the funny thing though, when New Year's comes, all

shipping gets fucked up for three days, so there's gonna be nothing probably until, I want to say,

January 10th.... I know so, for a fact. MORI explained, Dude, I knew like four people I was

getting from and those mother fuckers are hitting me up ... seeing if I can find shit for $35.... if you

pick some up, don't feel like a dummy, cuz everybody and their mother, not one person I know ...

this last week, has gotten anything ... under $35 ... anything. MORI said, You just want to get

em' so you have some for New Year's, that's .... I put money, you can sell em' for $60 a piece on

New Year's ..., and the customer agreed. MORI said, That would put every dollar ... You know

everybody's gonna be coked up on New Year's ... and ain't nobody gonna have nothing.

21.

On or about January 2, 2015, MORI obtained a supply of oxycodone pills from a

runner for resale and realized that the runner had shorted him one pill. During an intercepted

conversation, MORI said, It was the infamous [runner] one short. Tell the little nigger give me

the fuckin

ike I ain't got time to run around and get caught countin' em out every time I

fuckin get 'ern you know what I'm sayin and it's like he's supposed to, he's white and I've known

him for a minute. It's like come on he's, he's gonna say it was a mistake but I already know it

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wasn't ust tell be like ... if you can't make it right I mean the fuckin dudes never gonna fuck

with you ever again alright.

All in violation of Title 21, United States Code, Section 846.

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FORFEITURE

1.

The allegations contained in Count 1 of this Indictment are hereby realleged and

incorporated by reference for the purpose of alleging forfeitures pursuant to Title 21, United

States Code, Section 853, Title 18 United States Code, Section 981(a)(1)(C), and Title 28 United

States Code, Section 2461(c).

2. Pursuant to Title 21, United States Code, Section 853, upon conviction of an

offense in violation of Title 21, United States Code, Section 841 or 846, the defendants,

ALEX MORI, and

THOMAS DALTON,

shall forfeit to the United States of America any property constituting, or derived from, any

proceeds obtained, directly or indirectly, as the result of such offense and any property used, or

intended to be used, in any manner or part, to commit, or to facilitate the commission of, the

offense and all interest and proceeds traceable thereto, including, but not limited to, a sum of

money in the amount of at least $600,000.

SUBSTITUTE ASSETS

3. If any of the property subject to forfeiture, as a result of any act or omission of the

defendant:

a.

cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third party;

c.

has been placed beyond the jurisdiction of the court;

d.

has been substantially diminished in value; or

This figure is calculated using the street value of the oxycodone p ills that would have be en distributed by the

pill mill clinic during one month of operation. Two hundred total patients in a month, each receiving at least 100

oxycodone 30 mg pills, would total 20,000 pills in one month. A street value of $30 per pill would be the equivalent

of $600,000.

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e

as been commingled with other property which cannot be divided

without difficulty,

the United States of America shall be entitled to forfeiture of substitute property pursuant to 21

U.S.C. § 853(p), as incorporated by Title 18, United States Code, Section 982(b)(1) and Title 28,

United States Code, Section 2461(c), including but not limited to the following:

a.

ll right, title and interest in the following assets, accounts and holdings:

i.

135 Port Tobacco Road, Nanjemoy, Maryland 20662.

ROD I. ROStNSTEIN

United States Attorney

A TRUE BILL:

Date:

o eperson

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Pill Mill-Mori Dalton Indictment

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