DOJ National Health Care Fraud Takedown Incorrectly Includes Local Middlesboro Pharmacy In Press Release

From WRIL - The Big One -

We originally reported that on Monday, June 30, 2025 the Justice Department announced what they called a "takedown" and lodging of criminal charges against more than 300 individuals and businesses regarding over $14.6 billion worth of health care fraud schemes.

The Department of Justice stated that that the operation resulted in criminal charges against 324 defendants across 50 federal districts. Included in the takedown were 96 doctors, nurse practitioners, pharmacists and other licensed medical professionals. The government seized more than $245 million in cash, luxury vehicles, cryptocurrency, and other assets.

We also reported that among the cases filed in federal court in the Eastern District of Kentucky was one against Family Discount Drugs, PLLC, located in Middlesboro. According to the filing, it was stated that the pharmacy agreed to pay the United States $750,000 to resolve allegations that it knowingly billed the Medicare Part D Program for:

(1) drugs that were not actually purchased from wholesalers or dispensed to beneficiaries,

(2) brand-name drugs when generic drugs were dispensed, and/or

(3) generic drugs when less expensive generic versions manufactured by a different manufacturer were dispensed.

Shortly after the story was published we were contacted by the owner of the business stating while the action agreed to by both parties was factual, it was not in fact a criminal matter as purported by the Department of Justice. After speaking with the owner Jenny Marcum and receiving correspondence from her attorney clarifying the matter, here is clarification.

"A Message from Family Discount Drugs

We want to clear up some confusion caused by recent news stories that mentioned our pharmacy.

Family Discount Drugs is not involved in any federal health care takedown operation. Our store was not part of any criminal case, and no one here was found at fault or admitted any wrongdoing. The matter involving us was a civil billing dispute—not fraud or misconduct—and it was resolved without any finding of liability. At no point was a case ever filed in federal court.

From the beginning, we have fully cooperated with federal authorities and have worked in good faith to resolve the matter. We have remained in direct communication with the U.S. Attorney’s Office for the Eastern District of Kentucky to clarify the facts and to address the inaccurate public narrative.

Unfortunately, a national DOJ press release recently listed our pharmacy in connection with unrelated criminal prosecutions as part of a large-scale enforcement action. This has resulted in misleading news coverage and public confusion.

We have formally asked the Department of Justice to issue a correction or retraction and to remove our name from press materials connected to the takedown operation. We are hopeful they will take appropriate steps to set the record straight.

To be absolutely clear:

We are not closing.

We are fully licensed and operating as usual.

We are proud to serve Middlesboro and surrounding communities—just as we always have.

Sometimes national stories don’t get the local facts right. That’s why we wanted to speak directly to our customers and neighbors.

If you have any questions, don’t hesitate to call or stop by. We appreciate your continued trust and support.

— The Marcum Family & the Family Discount Drugs Team"

The case is being handled by Assistant U.S. Attorney Meghan Stubblebine of the U.S. Attorney’s Office for the Eastern District of Kentucky.