Sylvia Hofstetter, Pill Mill Operation, Knoxville TN, 2023

KNOXVILLE, Tenn. – A federal grand jury in Knoxville returned a 13-count superseding indictment against six individuals accused of operating ‘pill mills’ in Knox and Loudon Counties, generating a staggering $17.5 million in clinic revenue.

The indictment charges Sylvia Hofstetter, 52, of Knoxville, Richard Larson, 80, of Dandridge, Alan Pecorella, 67, of West Orange, N.J., Theodore McCrary, 69, of Oak Ridge, Courtney Newman, 41, of Knoxville, and Cynthia Clemons, 44, of Knoxville, with conspiracy to distribute and dispense oxycodone, oxymorphone, and morphine outside the scope of professional practice and not for a legitimate medical purpose, maintenance of drug-involved premises, distribution of oxycodone resulting in death, and money laundering.

Pecorella’s medical license was revoked in 2014 by the Tennessee Department of Health, but that didn’t stop him from allegedly raking in millions with his co-conspirators.

The superseding indictment details the charges against each of the individuals referenced above, with all accused of being responsible for the distribution of a quantity of oxycodone, oxymorphone, and morphine sufficient to generate clinic revenue of at least $17.5 million.

If convicted, those charged in the indictment could be imprisoned from 20 years to life and ordered to pay fines up to $1,000,000.

The investigation into the pill mill scam was led by the FBI High Intensity Drug Trafficking Area (HIDTA) task force, comprised of investigators from the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department, with assistance from the Tennessee Department of Health and the Drug Enforcement Administration’s Knoxville Diversion Group.

Assistant U.S. Attorneys Tracy L. Stone, Caryn Hebets, and Anne-Marie Svolto will represent the United States in the prosecution of these cases.

Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.

The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies, providing agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.

The investigation is also part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, which was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations.