Golden Gate Pharmacy Services, Ross Valley Compounding Pharmacy reach $717K drug-handling settlement

A San Rafael company that runs compounding pharmacies for people and pets has agreed to pay $717,250 to settle federal allegations of improper record-keeping for controlled substances, the U.S. Attorney's Office said Monday. The settlement also noted that an employee stole thousands of painkillers.

The settlement, signed Monday, acknowledges that Golden Gate Pharmacy Holdings, which owns animal-oriented Golden Gate Pharmacy Services and human-focused Ross Valley Compounding Pharmacy, failed to keep and maintain adequate records pertaining to controlled substances at the San Rafael facility, according to U.S. Attorney Brian Stretch and Drug Enforcement Administration Special Agent in Charge John Martin.

The allegations come from a September 2014 DEA inspection that uncovered multiple violations of the Controlled Substances Act. The two registered retail pharmacies acknowledged the obligation to 'keep and maintain' records related to its receipt, manufacturing and distribution of controlled substances, the officials said.

The investigation concluded that between Sept. 4, 2012, and Sept. 4, 2014, the pharmacies failed to record or maintain adequate inventory records or 'records of the receipt, storage or shipment of controlled substances in at least 5,161 instances.'

In addition, according to the agreement, an employee pilfered about 8,000 oxycodone tablets.