John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, have pled guilty to federal charges of conspiracy to distribute controlled substances and healthcare fraud — capping a years-long scheme that fed the opioid epidemic while lining their pockets with taxpayer cash. The former owners of Parks Drug Store admitted they knowingly filled opioid prescriptions written by a now-convicted doctor with zero medical justification, treating their pharmacy like a pill mill for cash.
The duo admitted they conspired to distribute prescription opioids written by Horace J. Davis, a former Albion physician convicted in 2017 on federal drug trafficking and healthcare fraud charges. Shedd and Tooley knew the prescriptions were illegitimate — no exams, no diagnoses — yet they filled them anyway, turning a blind eye to the flood of oxycodone and hydrocodone flowing out of their storefront and into the hands of addicts and dealers alike.
In addition to drug trafficking, the pharmacists admitted to a sweeping fraud operation: billing Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescriptions that were never even written. They forged medical records, falsified claims, and submitted them to government and private insurers, stealing hundreds of thousands of dollars from healthcare programs meant to serve the vulnerable.
As part of their guilty pleas, Shedd and Tooley agreed to surrender their DEA pharmacy registrations permanently — a death knell for any future in the profession. They also agreed to forfeit $1.2 million in illicit proceeds and pay $500,000 in restitution to the defrauded healthcare programs. Both face up to five years in federal prison at sentencing.
‘We are committed to fighting the opioid epidemic, and will prosecute the doctors, nurses, pharmacists, and other healthcare providers who feed the epidemic by writing and filling opioid prescriptions for no legitimate medical purpose,’ said U.S. Attorney Andrew Birge. ‘This is not healthcare — it’s trafficking.’
Timothy Plancon, DEA Detroit Field Division, and Manny Muriel, IRS Criminal Investigation Detroit, echoed the condemnation, calling the conduct a betrayal of public trust. The case was investigated by Albion Department of Public Safety, Calhoun County Sheriff’s Office, DEA, and IRS-CI, and prosecuted by Assistant U.S. Attorney Clay Stiffler.
Related Federal Cases
- 650 Register for Wis. Anti-Human Trafficking Confab · Wisconsin
- Amber Ginter Faces Human Trafficking Charges · Michigan
- Volkswagen AG to Plead Guilty in $4.3B Emissions Fraud Scandal · Illinois
- McKesson Hit with $150M Penalty in Opioid Crisis · Colorado
- Lansing Pimp Nicko Rush Pleads Guilty To Sex Trafficking Minor · Michigan
Key Facts
- State: Michigan
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News