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What Are the Charges for Physicians Charged with Drug Diversion?
Drug diversion — the illegal distribution or misuse of prescription medications — has become a major focus for federal and state prosecutors in Wisconsin. When physicians are accused of diverting controlled substances, the consequences are severe and swift.
In Milwaukee, doctors under investigation for drug diversion often face not only criminal charges but also the potential loss of their medical license, DEA registration, and professional reputation.
At our Milwaukee-based firm, we represent physicians and healthcare professionals facing white collar criminal charges, healthcare fraud, and government investigations. Recognized as one of Wisconsin’s premier trial and litigation firms, we approach these cases with the honesty, candor, and strategic depth they demand. Our Wisconsin white-collar criminal defense lawyers prepare each case as if it is going to trial because we believe that level of preparation is the foundation for every successful outcome.
What Does Drug Diversion Mean for Physicians?
Drug diversion occurs when prescription medications, especially controlled substances like opioids, benzodiazepines, or stimulants, are distributed or used for non-medical purposes. For physicians, diversion charges typically stem from accusations such as:
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Writing unnecessary prescriptions for friends, family members, or patients without a valid medical need
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Failing to properly document the administration or dispensing of medications
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Allowing staff members to access narcotics without supervision or authorization
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Using hospital or clinic supplies for personal use
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Prescribing under someone else’s DEA registration
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Knowingly falsifying records to conceal distribution of controlled substances
Unlike isolated misconduct, diversion investigations usually involve months of surveillance, chart audits, undercover operations, and coordination with multiple agencies, including the DEA, FBI, and Wisconsin Department of Safety and Professional Services (DSPS). By the time you learn you are being investigated, federal prosecutors may already be building a case.
Common Criminal Charges in Wisconsin Drug Diversion Cases
Physicians suspected of drug diversion in Wisconsin can face a wide range of criminal charges under both federal and state law. Some of the most common include:
Unlawful Distribution of a Controlled Substance
Under 21 U.S.C. § 841(a), it is a federal crime to knowingly and intentionally distribute a controlled substance without a legitimate medical purpose and outside the usual course of professional practice. If the physician knew that the prescription had no valid basis or was being written for an illegitimate purpose, the penalties can include years in federal prison.
Health Care Fraud (18 U.S.C. § 1347)
When the alleged diversion involves billing insurance or Medicaid/Medicare for services that were not medically necessary or never provided, physicians may face charges of health care fraud. Each false claim submitted can constitute a separate count. Penalties may include up to 10 years in prison per count, along with fines and restitution.
False Statements Related to Health Care Matters (18 U.S.C. § 1035)
This charge applies when a physician allegedly falsifies, conceals, or covers up material facts in documentation submitted to a health care benefit program. Even inaccurate patient records related to prescriptions can trigger this charge.
Conspiracy Charges (18 U.S.C. § 371)
If prosecutors believe that a physician conspired with office staff, patients, or others to distribute drugs or commit fraud, they may file conspiracy charges. The conspiracy itself, even without a completed act, is punishable by up to five years in prison and fines.
Maintaining a Drug-Involved Premises (21 U.S.C. § 856)
Physicians who operate a clinic or office allegedly used for the illegal distribution of controlled substances may be charged with maintaining a premises for drug activity. This charge is particularly common in cases involving "pill mills" or pain management clinics.
Civil, Licensing, and Professional Consequences of Drug Diversion
The consequences of a drug diversion charge extend far beyond the courtroom. A conviction or even an allegation can trigger a cascade of professional damage:
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License suspension or revocation by the Wisconsin Medical Examining Board
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Loss of DEA registration, effectively ending a physician’s ability to prescribe controlled substances
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Mandatory exclusion from Medicaid/Medicare participation
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Board certification challenges and ineligibility for hospital privileges
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Professional liability or malpractice claims
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Permanent damage to reputation and referral networks
Defending against these consequences requires more than a general criminal defense. It demands coordinated representation across criminal, civil, and administrative arenas from attorneys who understand not just the law, but how medical practices operate and how prosecutors build their cases.
How Prosecutors Build Diversion Cases Against Doctors
Physicians are often surprised by how aggressively these cases are pursued. Many assume that poor documentation or minor errors will be treated as regulatory concerns, not crimes. But in today’s enforcement environment, any pattern of overprescribing, patient overdoses, or charting discrepancies may trigger a criminal investigation.
Federal and state agents typically begin with data such as prescription records, insurance claims, and electronic health records. From there, they may interview patients, staff, pharmacists, or coworkers. Undercover operations are not uncommon, and agents may even pose as patients to obtain evidence. Once a target is identified, search warrants, subpoenas, and grand jury proceedings usually follow.
Often, physicians are invited to "explain themselves" before charges are filed. But these interviews are designed to elicit admissions and lock down your statements before you have seen the evidence against you. This is why it is critical to contact legal counsel before you speak to investigators or agree to a voluntary surrender of your records, license, or DEA registration.
Strategic Defense for Physicians Accused of Drug Diversion
Our Milwaukee firm approaches every diversion case with intense preparation and a clear-eyed view of what is at stake. We begin by scrutinizing the facts: Was there a valid medical purpose? Was the documentation insufficient but not fraudulent? Was the pattern of prescribing consistent with accepted standards of care? Did another employee commit the misconduct?
We also examine the legality of the investigation. Was the search lawful? Was the data mining overbroad? Did agents coerce statements or exceed their authority? In many cases, prosecutors overreach, charging doctors with crimes when the real issue is compliance. In others, a physician’s legitimate clinical decisions are judged in hindsight after a patient’s overdose or arrest. We challenge assumptions, cross-examine experts, and force the government to prove its case beyond a reasonable doubt.
Contact a Milwaukee, WI Drug Diversion Defense Lawyer
If you are a physician facing investigation or criminal charges for drug diversion, you need more than just a defense. You need a legal strategy from counsel who understands the law, the medicine, and the agencies bringing the case.
At Gimbel, Reilly, Guerin & Brown, LLP, our Milwaukee white-collar criminal defense lawyers are known across Wisconsin for our careful, candid, and strategic approach to litigation. We offer real, trial-tested representation in the face of serious federal and state charges. To schedule a confidential consultation, contact our Milwaukee office today at 414-271-1440.
