Ann Arbor pharmacies agree to $500,000 settlement over illegal drug sales
Two Ann Arbor pharmacies have agreed to a $500,000 settlement with the federal government to settle charges that they sold narcotics over the Internet without prescriptions.
Agreeing to the payments were The Prescription Shop, formerly located at 423 E. Washington St., Ann Arbor, and The Prescription Shop II, formerly at 2140 Ellsworth Road, and their owner, Thomas Kundrat, the U.S. Attorney’s Office announced Monday. The pharmacies are no longer operating, the government said.
The settlement calls for the payment of $400,000 to the government over the next three months. The government has agreed to suspend payment of the final $100,000 for meeting future compliance requirements by Wenk’s Pharmacy, an Ann Arbor pharmacy owned by Eileen Kundrat.
The government accused the pharmacies of dispensing hydrocodone through the mail to customers across the United States as part of an Internet-operated pharmacy scheme based in Orlando and Tampa, Fla.
The organization sold the drugs to customers through several Internet pharmacy businesses and websites, the government said. Customers on the website were not required to have a prescription before ordering the narcotics. Instead, customers completed an online questionnaire and paid for the drugs with a credit card. The organization had agreements with several physicians located throughout the United States to authorize the issuance of hydrocodone over the Internet, the government said.
The orders were forwarded directly to the Prescription Shop and the Prescription Shop II and shipped to the Internet customers in 45 states, the government said. Between October 2, 2006, and May 26, 2007, The Prescription Shop and The Prescription Shop II together filled more than 17,000 prescriptions of hydrocodone through these Internet sales, the government alleged.
The government settled the case through negotiations without filing a lawsuit. Along with this settlement, Wenk’s Pharmacy resolved an administrative complaint with the DEA.
Comments
jweaverA2
Fri, May 4, 2012 : 12:41 a.m.
I know Tom Kundrat, he is a hard working guy who drives a luxurious 12 year old Escort wagon to work every day. He lives in a modest home on the west side. This is NOT someone who became a millionaire based on criminal activity. Many of us made poor business decisions due to the internet explosion, now he gets to pay.
BhavanaJagat
Thu, May 3, 2012 : 1:12 a.m.
SPIRITUAL SICKNESS: I would request AnnArbor.com to share the complete information of this Pharmacy, the date when it was established and the history of its ownership. I would be happy to view the photo images of the owners and partners of these Prescription Shops. This news story is incomplete as it has not provided the basic information about the individuals who have violated the Law and reached a settlement.
Doug
Wed, May 2, 2012 : 1:40 p.m.
A cheap price to pay for millions made. Our federal government's finest at work!
Watcher
Wed, May 2, 2012 : 1:19 p.m.
Confusing story. Perhaps an update could explain the involvement of Wenks.
OLDTIMER3
Wed, May 2, 2012 : 12:11 p.m.
It seems like they should also go after the doctors involved with this.
mixmaster
Wed, May 2, 2012 : 2:31 a.m.
This is the business model that a few people want to trust to distribute medical marijuana? Please. Legalize growing and use for individual purposes.
Townie
Tue, May 1, 2012 : 10:45 p.m.
Why are they allowed to even be in business after this? This wasn't some innocent misunderstanding; they knew what they were doing - hydrocodone is oxy ! Via the internet after filling out a questionnaire!? Rob a bank and you go to jail. Rob via prescriptions and they dock you 20% of what you made? And you get to continue in business and pocket the profit? Two kinds of justice...one for poor people, another one for rich people.
N. Todd
Tue, May 1, 2012 : 11:13 p.m.
Nope. Hydrocodone is not "oxy". Presumably, they were making a great profit from distributing generic Vicodin, a schedule III drug. Oxycodone is a schedule II and, theoretically, would carry a harsher penalty. Not trying to be a 'Richard', just wanted to clarify.
djm12652
Tue, May 1, 2012 : 7:56 p.m.
dang.....I just got a low mg dosage for my dog and paid a fortune for 30 pills....and they filled 17K prescriptions?
Hmm
Tue, May 1, 2012 : 7:01 p.m.
This should be the penalty for anyone selling drugs illegally. Make them pay a fine and move on with it. How is a pharmacy illegally selling oxy's any different than some random guy doing it from his house? If it was the guy though the police would be raiding his home in the middle of the night endangering his family and the lives of the neighbors with their assault rifles and trigger fingers. The guy would be put in the criminal justice system and have a felony conviction following him for the rest of his life. But not if you own a pharmacy! Then you just get to pay a fine and move on with your life with no record. Complete hypocrisy and one of the reasons why the War on Drugs is a farce
Joe
Fri, May 4, 2012 : 8:34 a.m.
.... and how do you know the owners weren't raided...??????
cinnabar7071
Tue, May 1, 2012 : 9:39 p.m.
"The guy would be put in the criminal justice system and have a felony conviction following him for the rest of his life." What about the person he gets addicted to these drugs, how do you think the rest of their lives is going to be. How about the addicts family? Fair is fair.
Forever27
Tue, May 1, 2012 : 7:17 p.m.
apparently, when it comes to criminal behavior, corporations are not people.
treetowncartel
Tue, May 1, 2012 : 6:47 p.m.
It is a shame they sullied the name of Earl Wenk with this fraudulent behavior. They were good people and I loved theirold store in the Lamp Post plaza.
baycitymom
Sat, May 5, 2012 : 6:24 a.m.
agree
Forever27
Tue, May 1, 2012 : 6:11 p.m.
Imagine if this had been a marijuana dispensary. I doubt they'd get such a generous settlement.