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Colorado pharmacy settles allegations over unlawful dispensing practices

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Wednesday, May 14, 2025

Colorado pharmacy settles allegations over unlawful dispensing practices

Attorneys & Judges
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J. Bishop Grewell Acting United States Attorney for the District of Colorado | U.S. Attorney for the District of Colorado

COBigRed, Inc., the operator of Hometown Pharmacy & Medical in Trinidad, Colorado, has agreed to a settlement with the United States Attorney’s Office for the District of Colorado. The pharmacy will pay $250,000 to resolve allegations of violating the Controlled Substances Act by unlawfully dispensing controlled substances.

The United States alleges that between January 2017 and December 2023, Hometown Pharmacy filled prescriptions for controlled substances that were not valid as they lacked a legitimate medical purpose or were issued outside professional practice norms. These prescriptions reportedly involved high daily doses of opioids and dangerous drug combinations. Alleged red flags included cash payments by insured patients, long-distance travel for prescriptions, and early refill requests. It is claimed that Hometown Pharmacy failed to check the State of Colorado’s Prescription Drug Monitoring Program database adequately or document due diligence on these prescriptions.

To address these allegations, Hometown Pharmacy agreed to pay civil penalties and entered into an agreement with the Drug Enforcement Administration (DEA) to ensure compliance with its obligations under the Controlled Substances Act moving forward.

Acting U.S. Attorney J. Bishop Grewell stated: “Pharmacies have an obligation to ensure that every prescription they fill is for a legitimate medical purpose.” He emphasized accountability for pharmacies neglecting due diligence in prescription fulfillment.

DEA Rocky Mountain Field Division Special Agent in Charge Jonathan C. Pullen remarked on pharmacists' responsibility to adhere to federal regulations: “Hometown Pharmacy violated this trust... DEA will spare no expense to stop pharmacies from abusing their position.”

While settling this matter, Hometown Pharmacy did not admit liability. The investigation was conducted by the DEA’s Rocky Mountain Division and managed by Affirmative Civil Enforcement counsel.

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