Owner of Opioid Treatment Programs Settles Allegations of PPP Fraud & Controlled Substance Act

Jun 08, 2023 at 11:49 am by WGNS News

Report from the United States Attorney's General Office - Middle District of Tennessee

RUTHERFORD COUNTY, TN - WGNS has an update on a suspect who was tied to a fraud case and recovery clinics in Murfreesboro, Nashville and Gallatin, Tennessee. The case reportedly involved funds from the Paycheck Protection Program and a violation of the Controlled Substance Act.

James C. Sells III, of Springville, Tennessee, has agreed to pay the United States a total of $500,000 to settle allegations that he fraudulently applied for and received funds from the Paycheck Protection Program (PPP) and violated the Controlled Substances Act, announced United States Attorney Henry C. Leventis. 


According to the Settlement Agreement, Sells had ownership in several office-based opioid treatment programs in Middle Tennessee, including Nashville Recovery LLC, which he sold in September 2022, Everwell Medical LLC, in Murfreesboro, Forever Well, LLC, in Dickson, and Journey Medical, in Gallatin.  The programs, acting through Sells, applied for, and obtained multiple loans from the PPP in the total amount of $143,109, all of which were forgiven. 

In addition, in the Settlement Agreement, the United States also alleges that from January 1, 2020, through September 8, 2020, one of the providers who sees patients at two of the programs failed to secure his password to the electronic prescribing system and allowed his office manager to electronically sign prescriptions, in violation of the Controlled Substances Act. 

Of the $500,000 settlement, $143,109 is restitution relating to the PPP loans; $143,109 is damages relating to the PPP loan; and the remaining $213,782 is civil penalties for violations of the Controlled Substances Act. 

The civil claims settled by this Settlement Agreement are allegations only, and there has been no determination of liability.

This matter was investigated by the Drug Enforcement Administration - Diversion Group and the Tennessee Bureau of Investigation.  The United States is represented by Assistant U.S. Attorney Kara F. Sweet of the Middle District of Tennessee. 

Source: United States Attorney's General Office - Middle District of Tennessee

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