03-05-2010, 08:19 PM
Three pain clinics in Palm Beach County took in $14 million last year, authorities say
Pill mill problem ‘worse than cocaine cowboy days,’ sheriff says
By Bob LaMendola, Sun Sentinel
Three pain clinics raided this week in Palm Beach County raked in at least $14 million in cash last year, and a manager told a police informant they had $40 million to "launder," according to federal court documents filed as part of the raid.
The manager came to one restaurant meeting with the informant toting $50,000 cash in his backpack, saying it was that day's collections at American Pain, then in Fort Lauderdale, the records show.
None of the pain clinic owners or operators have been charged with a crime. But the cash flowing from narcotic pain pill buyers into the clinics — three among at least 220 in Broward and Palm Beach counties — shows the scope of a problem that is worsening despite attempts to combat it, police said.
"It's a business of great cash," Broward Sheriff Al Lamberti said Thursday. "This is worse than the cocaine cowboy days and the marijuana days.
"In past several months, more have opened up in the county," Lamberti said. "They've got the business, the traffic to support it. That's our biggest problem in law enforcement right now, other than identity theft."
Asked whether unscrupulous pain clinic operators peddling drugs are winning the battle now, Lamberti said: "Maybe, but we're on their heels. I think we're gaining a lot of ground."
Lt. Bruce Hannan, of the Palm Beach County Sheriff's Office narcotics division, said police heat on pain clinics has scared some narcotic buyers to Florida's west coast.
However, South Florida clinics are still a major supplier for pill dealers and abusers from across the South, Hannan said.
"We're moving on this as fast as we can," Hannan said. "But have I seen a decrease? Not yet."
The raids Wednesday were carried out by a federal-state-local task force based in Weston. The task force was formed last year under the U.S. Drug Enforcement Administration.
Agents seized truckloads of records, computers and other items from new American Pain in Lake Worth, as well as East Coast Pain and Executive Pain in West Palm Beach. All of the businesses are owned or controlled by twins Christopher and Jeffrey George, 28.
Federal officials also moved to seize three Wellington houses that Christopher George bought with about $1 million in cash he made from the clinics, according to a complaint filed by federal prosecutors in a process to begin seizing the houses.
The George brothers opened their first clinic in Wilton Manors in 2008 and set up a network of high-volume operations that police and federal agents have been investigating for 14 months, the complaint states.
In August 2008, Christopher George met the informant who was posing as a money launderer, the records state. One of George's partners in American Pain had dinner with the informant in March 2009 and said he had thousands to launder every week, and that George had $40 million he needed to launder offshore, the records state.
Federal agents said George-owned clinics deposited $14 million in cash in the bank last year. American Pain ordered 2.17 million doses of the narcotic pain pill oxycodone and was selling them for about $5 apiece.
Many of the patients were sent by drug dealers to obtain pills, which the dealers then resold in Kentucky and other states for $20 to $40, even $80 apiece, the complaint said.
American Pain employed five full-time doctors to see about 250 patients a day, and apparently paid them as contractors on a per-patient basis. The complaint said each doctor made $860,000 to $1.2 million last year.
The attorney for the George brothers said they have had great success with their clinics and that they operate them legally and have done nothing wrong. He had not seen the federal documents and said he could not comment on the allegations.
"They made a profit, they used that profit to buy a house. That's what we all do," James Eisenberg said.
Christopher George, contacted by cell phone, said he was too busy to comment.
Pill mill problem ‘worse than cocaine cowboy days,’ sheriff says
By Bob LaMendola, Sun Sentinel
Three pain clinics raided this week in Palm Beach County raked in at least $14 million in cash last year, and a manager told a police informant they had $40 million to "launder," according to federal court documents filed as part of the raid.
The manager came to one restaurant meeting with the informant toting $50,000 cash in his backpack, saying it was that day's collections at American Pain, then in Fort Lauderdale, the records show.
None of the pain clinic owners or operators have been charged with a crime. But the cash flowing from narcotic pain pill buyers into the clinics — three among at least 220 in Broward and Palm Beach counties — shows the scope of a problem that is worsening despite attempts to combat it, police said.
"It's a business of great cash," Broward Sheriff Al Lamberti said Thursday. "This is worse than the cocaine cowboy days and the marijuana days.
"In past several months, more have opened up in the county," Lamberti said. "They've got the business, the traffic to support it. That's our biggest problem in law enforcement right now, other than identity theft."
Asked whether unscrupulous pain clinic operators peddling drugs are winning the battle now, Lamberti said: "Maybe, but we're on their heels. I think we're gaining a lot of ground."
Lt. Bruce Hannan, of the Palm Beach County Sheriff's Office narcotics division, said police heat on pain clinics has scared some narcotic buyers to Florida's west coast.
However, South Florida clinics are still a major supplier for pill dealers and abusers from across the South, Hannan said.
"We're moving on this as fast as we can," Hannan said. "But have I seen a decrease? Not yet."
The raids Wednesday were carried out by a federal-state-local task force based in Weston. The task force was formed last year under the U.S. Drug Enforcement Administration.
Agents seized truckloads of records, computers and other items from new American Pain in Lake Worth, as well as East Coast Pain and Executive Pain in West Palm Beach. All of the businesses are owned or controlled by twins Christopher and Jeffrey George, 28.
Federal officials also moved to seize three Wellington houses that Christopher George bought with about $1 million in cash he made from the clinics, according to a complaint filed by federal prosecutors in a process to begin seizing the houses.
The George brothers opened their first clinic in Wilton Manors in 2008 and set up a network of high-volume operations that police and federal agents have been investigating for 14 months, the complaint states.
In August 2008, Christopher George met the informant who was posing as a money launderer, the records state. One of George's partners in American Pain had dinner with the informant in March 2009 and said he had thousands to launder every week, and that George had $40 million he needed to launder offshore, the records state.
Federal agents said George-owned clinics deposited $14 million in cash in the bank last year. American Pain ordered 2.17 million doses of the narcotic pain pill oxycodone and was selling them for about $5 apiece.
Many of the patients were sent by drug dealers to obtain pills, which the dealers then resold in Kentucky and other states for $20 to $40, even $80 apiece, the complaint said.
American Pain employed five full-time doctors to see about 250 patients a day, and apparently paid them as contractors on a per-patient basis. The complaint said each doctor made $860,000 to $1.2 million last year.
The attorney for the George brothers said they have had great success with their clinics and that they operate them legally and have done nothing wrong. He had not seen the federal documents and said he could not comment on the allegations.
"They made a profit, they used that profit to buy a house. That's what we all do," James Eisenberg said.
Christopher George, contacted by cell phone, said he was too busy to comment.