People's Pharmacy, Inc.
Outcome
People's Pharmacy (Lakewood, CO) and owner-pharmacist Mahnaz Abharian settled March 2023 for $3.5 million — all remaining pharmacy assets — for filling prescriptions with unresolved red flags including exceptionally high opioid doses and dangerous drug combinations from January 2014 through July 2020; pharmacy permanently barred from holding DEA registration.
Details
People's Pharmacy, Inc. — $3.5 Million All-Assets Settlement for 6-Year Opioid Red Flag Pattern (2014–2023)
Outcome: People's Pharmacy, Inc. of Lakewood, Colorado and sole owner-pharmacist Mahnaz Abharian agreed in March 2023 to a $3.5 million civil penalty settlement — comprising all of the pharmacy's remaining assets — for unlawfully filling controlled substance prescriptions despite red flags of illegitimacy from January 2014 through July 2020; both the pharmacy and Abharian permanently forfeited the right to hold a pharmacy license or DEA registration.
People's Pharmacy was located in Lakewood, Colorado. Mahnaz Abharian was the sole owner of People's Pharmacy and served as pharmacist-in-charge. The United States alleged that between January 2014 and July 2020 — a six-year period — People's Pharmacy violated the Controlled Substances Act by unlawfully filling prescriptions despite the presence of red flags indicating the prescriptions were not issued for legitimate medical purposes.
The specific violations included filling prescriptions for exceptionally high opioid dosages and for dangerous drug combinations that can depress the central nervous system and impair breathing. These categories of prescriptions presented overt red flags that the pharmacy failed to investigate and resolve before dispensing.
As part of the March 2023 settlement, People's Pharmacy agreed to pay a $3.5 million civil penalty — equivalent to all of its remaining assets — and permanently agreed to forgo holding a pharmacy license or DEA registration. This permanent bar effectively means the pharmacy can never operate again or dispense any controlled substances in the future. Abharian similarly agreed never to dispense controlled substances again.
How Crucible Prevents This
People's Pharmacy dispensed exceptionally high opioid dosages and dangerous drug combinations that could depress the central nervous system for over six years. Crucible's morphine milligram equivalent (MME) threshold controls and high-risk drug combination alerts would have flagged these prescriptions at the point of fill and required documented clinical justification before dispensing — at the first instance, not after six years.
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