Johnstown addiction clinic owner faces conspiracy, money laundering charges

The owner of an addiction clinic in Johnstown where addicts often left their cars idling outside so they could run in and get their prescriptions with few — or no — questions asked has been indicted on conspiracy and related offenses.

The indictment charges Stephen Shaner, 69, of Bulger with conspiring to unlawfully distribute drugs, maintaining a drug-involved premises, conspiracy to commit health care fraud and money laundering.

Mr. Shaner was the owner of SKS Associates.

A grand jury said he conspired with two contract doctors there, Michael Cash and Ruth Jones, to submit illegal prescriptions for Suboxone to patients who spent only minutes inside.

Mr. Shaner and the others are also accused of submitting fraudulent claims to Medicare to cover the cost of the Suboxone prescriptions at pharmacies.

The two doctors had been charged previously and have entered guilty pleas.

Prosecutors have said the illegal operation was one of the largest of its kind in the state.

Federal agents said patients arriving at SKS didn’t need exams or personal histories. All they needed was $90 in cash to get their Suboxone.

Cash has admitted to distributing 32,000 doses without any medical need from 2016 through March 2018.

He wasn’t in the office for much of the time. So employees filled out prescriptions and in some cases signed his name. One employee was filling out so many prescriptions that she submitted invoices to get paid for all the extra work she was doing beyond her job description.

Jones also pleaded to similar charges of dispensing 22,000 doses.

The investigation began when sources told agents that the clinic wasn’t doing exams, lab tests or follow-up visits with patients. They were coming in and leaving with prescriptions after only five minutes or so. Sometimes they didn’t even park; they left their cars running outside with the hazard lights blinking.

One undercover agent went in and found no doctors in the office. The agent spent three minutes inside and still got a prescription for $90 cash.

Two other agents had a similar experience.

Prosecutors said that on a typical day, 40 patients came and went, spending a few minutes inside and walking out with a prescription.

Mr. Shaner could not be reached for comment. On Thursday he pleaded not guilty, and he was released pending a March 14 status conference.