August 8, 2012: Former PIN Rx Pharmacist Sentenced to Almost 4 Years on Kickback and Tax Charges
Food and Drug Administration
Office of Criminal Investigations
U.S. Department of Justice Press Release
For Immediate Release
August 8, 2012
United States Attorney
District of Maine
Contact: James W. Chapman, Jr.
Assistant U.S. Attorney
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced today that Reginald S. Gracie, Jr., age 41, of Bowdoin, Maine, the former Pharmacist-in-Charge of PIN Rx, was sentenced in U.S. District Court by Chief Judge John A. Woodcock, Jr. to 3 years and 10 months in prison followed by three years of supervised release for soliciting and accepting kickbacks as an agent of an organization receiving federal funds and for filing false federal income tax returns. He was ordered to repay back taxes agreed to be $41,784. Gracie pled guilty to the charges on February 17, 2012.
According to Court records, Gracie was the Director of Operations at PIN Rx, a mail order pharmacy operated by the Penobscot Indian Nation. He became the Pharmacist-in-Charge in April 2006. Between May and November of 2006, he solicited and accepted more than $120,000 from six companies that sold prescription drugs, including controlled substances, over the Internet. In 2006, PIN Rx received over $5,000,000 in MaineCare funds, most of which were paid by the U.S. Department of Health and Human Services. Gracie also failed to report his illicit income on his 2006 individual income tax return and on a 2006 corporate income tax return for Gracie Enterprises, Inc.
This case was initiated after a referral from the Maine Attorney General's Office and the Maine Board of Pharmacy. It was investigated by the Drug Enforcement Administration; the U.S. Food and Drug Administration, Office of Investigations; the Internal Revenue Service - Criminal Investigation; the U.S. Department of Housing and Urban Development, Office of Inspector General; and the U.S. Department of Agriculture, Office of Inspector General.