Johnstown addiction clinic owner accused of violating federal drug and Medicare laws, money laundering
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A federal grand jury in Pittsburgh on Tuesday indicted a drug addiction treatment clinic operator for allegedly conspiring with two doctors to violate drug and health care laws, as well as laundering money from drug sales.
Stephen K. Shaner, 69, of Bulger, about 30 miles from Pittsburgh, is the owner/operator of a Johnstown clinic that provided drug treatment to about 275 patients who were trying to kick their opioid addictions.
The government intends to recover almost $2.6 million, a spokeswoman said.
The government said Wednesday that the SKS Associates clinic operated at 2001 Bedford St. in Johnstown. Shaner allegedly conspired with two doctors, Michael Cash and Ruth Jones, to create and submit illegal prescriptions for buprenorphine, more commonly known as suboxone or subutex, and dispensed it for illegal gain. Cash and Jones have pleaded guilty and are awaiting sentencing in June, according to federal records.
Shaner is also charged with conspiring with the physicians to commit health care fraud for allegedly filing fraudulent Medicare claims for payments to cover the illegal buprenorphine prescriptions.
In addition, Shaner is charged with using or maintaining an illegal drug distribution operation for six years, ending in April.
The indictment alleges that Shaner used the proceeds of the illegal drug sales to pay for personal obligations, which violates money laundering statutes.
Assistant U.S. Attorneys Robert S. Cessar and Michael L. Ivory are prosecuting this case.
The investigation leading to the filing of charges in the cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit.
Chuck Biedka is a Tribune-Review staff writer. You can contact Chuck at 724-226-4711, cbiedka@tribweb.com or via Twitter @ChuckBiedka.