A former Mount Pleasant resident's scheme to distribute high-risk substances for non-medical purposes was recently thwarted by the Drug Enforcement Administration's (DEA) Washington Division, as John Gregory Barnes pled guilty to a federal drug and health care conspiracy.
Barnes, 57, who is presently listed as a resident of Sullivan's Island, was accused of dispensing and distributing registration numbers to non-authorized medical providers, as well as doling out buprenorphine — a substance that can cause respiratory distress and death — for non-medical use.
According to a press release from the U.S. Attorney's Office (Western District of Virginia), the suspect piloted the drug dispersion operation through five pain clinics in the Western District of Virginia, including: Lynchburg, Madison Heights, Blacksburg, Christiansburg and Woodlawn.
The report states that the one-time mortgage broker and business owner attempted to execute a plan to defraud health benefit programs.
Moreover, L5 Medical Holdings, a business entity "controlled" by Barnes, pled guilty to a slew of charges related to conspiracies to distribute/dispense fentanyl, oxycodone, hydrocodone and morphine for non-medical intentions.
Court documents indicate that Barnes invested in a medical practice in 2014 through L5 Medical Holdings despite lacking any medical training. L5 went on to operate pain management clinics that prescribed opioid and opioid addiction treatment medications, including Suboxone.
It was noted that Barnes entered the pain management realm because it was a "recession-proof" industry.
The alleged offender reportedly became more focused on prescribing Suboxone and other opioids rather than facilitating interventional treatments during his new clinical venture.
It was further revealed that "medical providers with L5 followed the opinion of non-medical professionals in making decisions." These actions resulted in patient interactions with non-medical personnel being improperly billed to Virginia Medicaid and Medicare.
To that end, Barnes and L5 declined to implement a random drug testing policy to avoid losing revenue derived from billing Medicare and Virginia Medicaid.
“Our fight against addiction and the opioid epidemic isn’t just with the drugs or major pharmaceutical companies, but also with the individuals who take advantage of addiction, of others’ pain, for their personal gain. Monetizing addiction is immoral and illegal,” said Attorney General Miyares. “I’m proud of my office and our federal partners for working together to deliver justice.”
Special Agent in Charge Jared Forget of the Drug Enforcement Administration’s Washington Division added: “Our investigation into Barnes’ illegal business activities of highly addictive pain medication at the height of the opioid epidemic emphasizes his criminal indifference to human life.
“Today’s guilty plea highlights our commitment to the tireless work of investigating the diversion of controlled substances and prosecuting those responsible for fueling opioid addiction and deadly poisonings in our area — saving lives in our communities.”
At sentencing, Barnes will be facing a maximum statutory penalty of up to five years behind bars.
The Drug Enforcement Administration, the U.S. Department of Health and Human Services — Office of the Inspector General, the Virginia State Police, and the Virginia Attorney General’s Office — Medicaid Fraud Control Unit investigated the case.
Assistant U.S. Attorneys S. Cagle Juhan, Jason Scheff and Special Assistant United States Attorney Janine M. Myatt, Assistant Attorney General with the Virginia Attorney General’s Office, are prosecuting the case.
