Evann Herrell, 4 East Tennessee Doctors Convicted in Drug Trafficking, Kentucky 2023

Four East Tennessee Doctors Convicted in Drug Trafficking and Fraud Scheme

FRANKFORT, Ky. – Four Tennessee physicians, Evann Herrell, Mark Grenkoski, Keri McFarlane, and Stephen Cirelli, were convicted of conspiracy to illicitly prescribe controlled substances and related fraud and money laundering offenses in a federal jury trial in Frankfort, Kentucky.

The defendants worked together in two east Tennessee clinics, called EHC Medical, that purported to offer treatment for opioid use disorder. However, the evidence presented established that the defendants agreed to unlawfully prescribe buprenorphine (the controlled substance in the drug known by its trade name, Suboxone) and benzodiazepine-class drugs, including clonazepam.

Robert Taylor, who opened EHC Medical in 2013 and operated it through late 2018, pleaded guilty to a drug trafficking conspiracy charge and was sentenced earlier this year to 30 months in prison. He forfeited $13.8 million and paid an additional fine of $200,000.

At trial, the United States presented evidence of a wide-ranging conspiracy to provide prescriptions for high doses and dangerous combinations of Suboxone and benzodiazepines to cash-paying customers. These drugs were being sold, traded, and abused throughout southeastern Kentucky.

The evidence further established that the Defendants engaged in a conspiracy to falsify medical records, while putatively treating patients, and that Herrell, Grenkoski, and McFarlane conspired to cause millions of dollars in fraudulent submissions to Medicare, Kentucky Medicaid, and other health benefit programs for prescription drugs and urine drug testing.

“These physicians focused on their own greed and self-interests, not the needs of their patients,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.

The Defendants are scheduled to appear for sentencing on December 4, 2023. The statutory maximum penalty for the drug trafficking conspiracy is 10 years, for the conspiracy to falsify documents in connection with delivery of health care services is 5 years, and for the fraud and money laundering counts is 20 years.

The investigation was conducted by the DEA, IRS, and HHS, with support from the Kentucky Office of the Attorney General.

The United States was represented in the case by Assistant U.S. Attorneys Greg Rosenberg, Amanda Huang, and Andrew Smith.

The case was prosecuted as part of the Organized Crime Drug Enforcement Task Force.

Defendant: Evann Herrell

Criminal Charges: Conspiracy to Illicitly Prescribe Controlled Substances and Related Fraud and Money Laundering Offenses

City and State: Frankfort, Kentucky

Date: Friday (no specific date mentioned)

Sentence: Scheduled to appear for sentencing on December 4, 2023

Dollar Amount: $13.8 million forfeited and $200,000 fine

Source: https://www.justice.gov/usao-edky/pr/four-east-tennessee-doctors-convicted-drug-trafficking-and-fraud-scheme