Three individuals connected to pharmacies in Celina, Tennessee have pleaded guilty to charges related to the illegal distribution of controlled substances and health care fraud. The announcement was made by Robert E. McGuire, Acting United States Attorney for the Middle District of Tennessee.
Thomas K. Weir, 65, majority owner of Oakley Pharmacy doing business as Dale Hollow Pharmacy and Clay County Xpress Pharmacy; William L. Donaldson, 65, former owner and pharmacist of Dale Hollow Pharmacy; and Pamela Spivey, 55, co-owner of Xpress Pharmacy—all from Celina—entered their guilty pleas shortly before a criminal trial was set to begin in Cookeville.
According to the U.S. Attorney’s Office, Weir pleaded guilty to conspiracy to distribute and dispense controlled substances, conspiracy to commit health care fraud, and conspiracy to violate the Anti-Kickback Statute. Donaldson pleaded guilty to conspiracy to distribute and dispense controlled substances as well as conspiracy to violate the Anti-Kickback Statute. Spivey pleaded guilty to conspiracy charges involving both distribution of controlled substances and health care fraud.
Other individuals involved in the case had previously entered guilty pleas: Charles Robert “Bobby” Oakley, a minority owner of Dale Hollow Pharmacy; John Polston and Michael Griffith, pharmacists-in-charge at each pharmacy.
The investigation found that between 2014 and 2019 the pharmacies dispensed large amounts of controlled substances despite clear signs that patients were abusing or diverting them for non-medical use. In May and June 2016, DEA diversion investigators inspected Dale Hollow Pharmacy. The following year Weir, Oakley, and Polston signed an agreement with the DEA regarding regulatory violations but continued dispensing practices that violated that agreement.
Authorities said dispensing at both pharmacies increased after the agreement was signed, even though there were growing indications that patients were misusing or selling the drugs—including cases where groups traveled long distances together specifically for prescriptions.
Prosecutors also stated that false claims were submitted by Dale Hollow Pharmacy and Xpress Pharmacy through Medicare Part D plans and TennCare for unnecessary combinations of controlled substances sought after by those abusing them.
Weir and Donaldson admitted involvement in a kickback scheme where Donaldson received payments for recruiting patients. The conspirators paid patient co-payments directly or offered “Monkey Bucks,” which could be exchanged for cash; Weir also paid patients cash if they filled prescriptions at his pharmacy which were then billed to federal programs.
As part of his plea agreement, Weir will pay $1.4 million in restitution to Medicare and TennCare as well as forfeit properties tied to the pharmacies.
Sentencing is scheduled for January 5, 2026 for Weir and Spivey; Donaldson will be sentenced on January 22, 2016. At sentencing Weir and Spivey face up to ten years on some charges while Donaldson faces up to twenty years on others; fines range from $250,000 up to $1 million depending on individual counts.
The case was investigated by several agencies including the Drug Enforcement Administration (DEA), U.S. Department of Health & Human Services-Office of Inspector General (HHS-OIG), Tennessee Bureau of Investigation (TBI), Clay County Sheriff’s Office, and Celina Police Department.
"Weir pleaded guilty to conspiracy to distribute and dispense controlled substances, a conspiracy to commit health care fraud, and a conspiracy to violate the Anti-Kickback Statute. Donaldson pleaded guilty to conspiracy to distribute and dispense controlled substances and a conspiracy to violate the Anti-Kickback Statute. Spivey pleaded guilty to a conspiracy to distribute and dispense controlled substances and a conspiracy to commit health care fraud."
"This case was investigated by the DEA; the U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation; with the assistance of the Clay County Sheriff’s Office and Celina Police Department. Assistant U.S. Attorneys Sarah K. Bogni and Zachary T. Hinkle prosecuted the cases. Assistant U.S. Attorney Ellen Bowden-McIntyre is handling parallel civil litigation."
