Case 4:17-cr-00009-MAC-KPJ Document 1 Filed 01/18/17 Page 1 of 7 PageID #: 1
`Case 4:17-cr-00009-MAC-KPJ Document 1 Filed 01/18/17 Page 1 of 7 PageID #: 1
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`SHERMAN DIVISION
`
`
`F? EELS?
`
`us. DISTRICI Ct
`EASTERN DISTRICT 0% 0
`,
`JAN 1 B 2111!
`
`FILED UNDER SEAL
`
`BY
`DEPUTY
`CAUSE NO. 4:17-CR-fl’
`Judge (”mm
`
`§ § §
`
`§
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`§ § § §
`
`UNITED STATES OF AMERICA
`
`V.
`
`THEODORE WILLIAM TAYLOR (1)
`a/k/a Tad Taylor
`CHIA JEAN LEE (2)
`a/lda Chia Lee Taylor
`
`The United States Grand Jury Charges:
`
`INDICTMENT
`
`Count One
`
`Violation: 21 U.S.C. § 846
`(Conspiracy to Distribute, Dispense,
`and Possess with Intent to Distribute
`and Dispense Controlled Substances)
`
`At all times material to this Indictment:
`
`THE DEFENDANTS
`
`1.
`
`Defendant, Theodore William TAYLOR (“TAYLOR”), was a medical doctor
`
`who operated a medical clinic located at 403 West Campbell Road, Richardson, Texas (“Clinic
`
`#1”), and Operated a medical clinic located at 1920 N. Collins Boulevard, Richardson, Texas
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`(“Clinic #2”).
`
`2.
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`Defendant, Chia Jean LEE (“LEE”), was TAYLOR’s wife and managed Clinic #1
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`and Clinic #2 and provided medical assistance to TAYLOR at those locations.
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`US. v. Taylor et a]
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`Case 4:17-cr-00009-MAC-KPJ Document 1 Filed 01/18/17 Page 2 of 7 PageID #: 2
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`CONTROLLED SUBSTANCE LAWS
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`3.
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`The Controlled Substances Act (“CSA”), 21 U.S.C. § 801 et seq. and its
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`implementing regulations in 21 C.F.R. §1301 et seq., governed the possession, manufacture,
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`distributing, dispensing, administering, and prescribing of controlled substances within the
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`United States. Those laws established a closed system of distribution for drugs and other
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`substances, which were defined by law as “controlled substances” and assigned to one of five
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`schedules (Schedule I, 11, III, IV, & V) depending upon their potential for abuse, likelihood of
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`physical or psychological dependency, accepted medical use, and accepted safety for use under
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`direct medical supervision.
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`4.
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`21 U.S.C. § 841 made it a crime for all persons to knowingly or intentionally
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`“manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or
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`dispense a controlled substance.” 21 U.S.C. § 846 made it a crime to attempt to violate 21
`
`U.S.C. § 841 or conspire with others to do so.
`
`5.
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`Federal law created a limited exception to 21 U.S.C. § 841 for certain licensed
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`medical practitioners who possessed, manufactured, distributed, or dispensed controlled
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`substances in connection with legally authorized medical practice. Medical practitioners, such as
`
`physicians, were prohibited from distributing or dispensing controlled substances unless
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`expressly authorized by law to do so and only in compliance with applicable rules, regulations,
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`and laws of the State(s) where the practitioner was licensed to practice.
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`6.
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`21 C.F.R. § 1306.04(a) governed the issuance of a valid medical prescription and
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`provided: “A prescription for a controlled substance to be effective must be issued for a
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`legitimate medical purpose by an individual practitioner acting in the usual course of his
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`professional practice. The responsibility for the proper prescribing and dispensing of controlled
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`substances is upon the prescribing practitioner, but a corresponding responsibility rests with the
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`pharmacist who fills the prescription. An order purporting to be a prescription issued not in the
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`usual course of professional treatment or in legitimate and authorized research is not a
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`prescription within the meaning and intent of [the CSA] and the person knowingly filling such a
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`purported prescription, as well as the person issuing it, is subject to the penalties provided for
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`violations of the provisions relating to controlled substances.”
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`7.
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`To be authorized to write or dispense prescriptions for controlled substances,
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`medical practitioners were required to comply with State law governing the practice of medicine,
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`including obtaining applicable State licensure and a registration from the Drug Enforcement
`
`Administration.
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`8.
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`Texas laws and regulations, including the rules of the Texas Medical Board,
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`regulated the licensing and practice of medical doctors and other medical practitioners in Texas.
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`Those laws governing the practice of medicine were established to ensure that every physician
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`practicing in Texas met the minimum standards and requirements for safe practice.
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`9.
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`For example, § 481 .071(a) of the Texas Health and Safety Code provided that a
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`medical practitioner “may not prescribe, dispense, deliver, or adminiSter a controlled substance
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`or cause a controlled substance to be administered under the practitioner’s direction and
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`supervision except for a valid medical purpose and in the course of medical practice.”
`
`10.
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`Section 164.053 of the Texas Occupations Code prohibited medical practitioners
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`from, among other things, writing prescriptions for or dispensing medication to a person the
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`practitioner knew or should have known was an abuser of controlled substances; writing false or
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`fictitious prescriptions for controlled substances; prescribing a drug that is nontherapeutic in
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`nature or in the manner prescribed; and prescribing or dispensing drugs in a manner inconsistent
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`with public health and welfare.
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`THE CONSPIRACY
`
`11.
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`From in or about January 2010 and continuing through in or about February 2012,
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`in Collin County, Texas, in the Eastern District of Texas and elsewhere, the Defendants herein,
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`TAYLOR and LEE, did unlawfully, knowingly and intentionally combine, conspire, confederate
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`and agree together with each other and with other persons known and unknown to the grand jury
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`to knowingly, intentionally, and unlawfully distribute, dispense, and possess with the intent to
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`distribute and dispense controlled substances in Violation of 21 U.S.C. § 841 as described below.
`
`a.
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`TAYLOR, while acting and intending to act outside the usual course of
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`professional practice and without a legitimate medical purpose, wrote
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`prescriptions for individuals in exchange for money, which prescriptions
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`authorized the individuals to obtain medications containing a detectable amount
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`of the following controlled substances:
`
`0
`
`0
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`0
`
`0
`
`o
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`oxycodone, a Schedule II controlled substance;
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`amphetamine salts, a Schedule II controlled substance;
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`hydrocodone, a Schedule III controlled substance;
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`alprazolam, a Schedule IV controlled substance; and
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`promethazine with codeine, a Schedule V controlled substance.
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`US. v. Taylor et al
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`Page 4 of 7
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`b.
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`Those individuals had the prescriptions filled at pharmacies located in the
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`Eastern District of Texas and elsewhere and then distributed and possessed with
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`the intent to distribute the controlled substances, in violation of 21 U.S.C. § 841.
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`c.
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`TAYLOR and LEE knew the conduct described above was unlawful and
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`willfully agreed with each other and others to further it.
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`All in violation of21 U.S.C. § 846.
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`NOTICE OF INTENT TO SEEK CRIMINAL FORFEITURE
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`As a result of committing the offense charged in this Indictment, the Defendants shall
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`forfeit to the United States pursuant to 21 U.S.C. § 853, all their right, title, and interest to any
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`property, real or personal, constituting or derived from proceeds obtained directly or indirectly as
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`a result of the offense, and any property used or intended to be used in any manner or part to
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`commit or to facilitate the commission of the offense, including but not limited to the following:
`
`0
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`$21,615 in cash seized at the Defendants’ residence in Plano, Texas, on or about
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`February 2, 2012.
`
`a
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`$1,389 in cash seized from Clinic #2 on or about February 2, 2012.
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`o All medical practitioner licenses and registrations, including any medical, nursing, or
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`other license related to the medical profession issued by the State of Texas or any
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`other state, and any Drug Enforcement Administration registration or analogous
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`federal or state registration or licensure.
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`0
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`Substitute assets as authorized by 21 U.S.C. § 853(p).
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`US. v. Taylor et al
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`A TRUE BILL,
`
`
`
`G N JUR FOREPERSON
`
`BRIT FEATHERSTON
`
`Acting United States Attorney
`
`By:
`
`
`
`STEVANV A. BUYS
`
`Assistant United States Attorney
`
`US. v. Taylor et a]
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`Page 6 of 7
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`Case 4:17-cr-00009-MAC-KPJ Document 1 Filed 01/18/17 Page 7 of 7 PageID #: 7
`Case 4:17-cr-00009-MAC-KPJ Document 1 Filed 01/18/17 Page 7 of 7 PageID #: 7
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`IN THE UNITED STATES DISTRICT COURT
`
`FOR THE EASTERN DISTRICT OF TEXAS
`SHERMAN DIVISION
`
`CAUSE NO. 4: 17-CR-_
`Judge
`
`§ §
`
`§
`§
`§
`§
`§
`§
`
`UNITED STATES OF AMERICA
`
`V.
`
`THEODORE WILLIAM TAYLOR (1)
`a/k/a Tad Taylor
`CHIA JEAN LEE (2)
`a/k/a Chia Lee Taylor
`
`
`NOTICE OF PENALTY
`
`Count One
`
`Violation:
`
`21 U.S.C. § 846 '
`
`Penalty:
`
`A term of imprisonment, a fine, and a term of supervised release based on the
`category of controlled substance involved as follows:
`
`
`
`
`
`
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`DRUG CATEGORY IMPRISONMENT
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`FINE
`
`Schedule II
`
`Schedule III
`
`Schedule IV
`
`Schedule V
`
`not more than
`20 years
`not more than
`10 years
`not more than
`5 years
`not more than
`
`1 year
`
`
`
`not to exceed
`$1,000,000
`not to exceed
`$500,000
`not to exceed
`$250,000
`not to exceed
`
`$100,000
`
`Special
`Assessment:
`
`$100
`
`
`
`SUPERVISED
`RELEASE
`at least 3 years
`
`at least 2 years
`
`
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`at least 1 year
`
`
`
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`not more than
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`1 year
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`US. v. Taylor et al
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`Page 7 of 7
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