Pharma Company Pleads Guilty to Falsifying Prescription Orders

U.S. Compounding Inc., a subsidiary of DMK Pharmaceuticals Corp., pleaded guilty to multiple fraud offenses that violated the Food, Drug, and Cosmetic Act, the Justice Department said Tuesday.

The company and a former executive Sam Glover allegedly falsified prescription orders by illegally entering into an arrangement with a veterinarian in which a sales representative would use the veterinary state licenses to generate false prescriptions in order to justify shipping prescriptions directly to consumers. The consumers lacked bona fide prescriptions for those drugs, the DOJ said.

Despite scrutiny by members of the company who suspected the orders were unverified, the ...