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2 Ann Arbor pharmacies named in online prescription scheme

Prescription Shop pharmacies, owner accused of taking part in scheme to distribute controlled substance

ANN ARBOR, Mich. – Two Ann Arbor pharmacies will pay $500,000 to resolve allegations that they sold controlled substances through Internet sites.

United States Attorney Barbara L. McQuade said the Prescription Shop, the Prescription Shop II and their owner Thomas Kundrat are accused of selling hydrocodone through the mail to customers across the United States. The pharmacy scheme was based in the Orlando and Tampa, Fla. areas.

The U.S. Attorney's office said customers were not required to have a prescription before ordering controlled substances.

These physicians did not examine the customer, and because no bona fide doctor/patient relationship existed, they prescribed the controlled substances outside the usual doctor/patient relationship.

Orders for hydrocodone were forwarded directly to the Prescription Shop and the Prescription Shop II via the Internet and shipped to the customers in 45 states. Between Oct. 2, 2006 and May 26, 2007, he Prescription Shop and the Prescription Shop II collectively filled more than 17,000 prescriptions of hydrocodone based on the Internet sales, federal investigators said.

Both shops have since closed.

Under the settlement, $400,000 will be paid to the government over the next three months.

The government has agreed to suspend payments of the final $100,000 for meeting future compliance requirements by Wenk's Pharmacy, owned by Eileen Kundrat, also in Ann Arbor.