SANTA ANA, California – A San Gabriel Valley doctor who pleaded guilty to a federal drug trafficking charge for illegally distributing the powerful opioid best known by the brand name OxyContin was sentenced today to over 13 years in federal prison.
As he was
sentencing Cham today, Judge Guilford expressed concern “that other doctors
haven’t gotten the message of the seriousness of this activity.”
Cham pleaded
guilty in April 2016 to one count of distribution of oxycodone, a powerful and
addictive painkiller marketed under various names, including OxyContin, Vicodin
and Norco. Cham also pleaded guilty to one count of money laundering.
In documents
filed in relation to today’s sentencing, prosecutors wrote that Cham “stands
before the court for selling prescriptions for massive amounts of oxycodone to
persons he well knew were drug dealers and addicts, in exchange for hundreds of
thousands of dollars in cash. Defendant’s illegal prescriptions killed at least
two addicted youths, including a 22-year-old woman and 28-year-old man.”
The young woman,
who was a resident of Oregon, died after ingesting narcotics prescribed by Cham
to members of Oregon-based drug trafficking conspiracy. Cham issued
prescriptions in the names of the Oregon drug traffickers – many of whom he had
never met – and Cham created fake paperwork to make it falsely appear he had
examined the “patients.” Investigators in Oregon identified over 12,000 pills
of oxycodone that Cham illegally prescribed to the drug traffickers in that
state.
“There is an
opioid-abuse epidemic in this nation, and some of that drug abuse is fueled by
unscrupulous doctors like this defendant,” said United States Attorney Nicola
T. Hanna. “The lengthy sentence imposed in this case is the direct result of
this defendant’s profiting from prescribing narcotics to persons he knew to be
addicts and drug dealers – actions that led to fatal overdoses for two people.”
In a plea
agreement filed in this case, Cham admitted that he unlawfully prescribed
oxycodone to an undercover agent posing as a patient in March 2014 in exchange
for $300 in money orders, which Cham then deposited into a bank account held in
the name of another business. Cham made the deposit “knowing that the
transaction was designed to conceal and disguise the nature and source of the
money orders,” according to the plea agreement.
Acting on
tip about a pharmacy that was filling a large number of prescriptions written
by Cham, special agents with the Drug Enforcement Administration discovered a
“large-scale criminal operation” in which Cham was writing thousands of
prescriptions for powerful painkillers, often in combination with alprazolam
(often sold under brand name Xanax) or carisoprodol (often sold under the brand
name Soma), according to court documents. “The combination of these drugs is
particularly dangerous, and is associated with the majority of overdose
deaths,” according to a sentencing memorandum filed in court.
A doctor who
specializes in pain management and addiction reviewed Cham’s history of writing
prescriptions and found “gross and overwhelming evidence of inappropriate
prescribing of narcotics and controlled drugs.” The expert also reviewed
recordings made by undercover operatives who obtained prescriptions from Cham
and found that the doctor was “essentially at that point dealing drugs.”
An affidavit
previously filed in this case discussed how an undercover officer made three
visits to Cham’s La Puente office in 2014, and how Cham wrote prescriptions for
controlled substances in exchange for $200 or $300 in cash or money orders. As
discussed in the court document, Cham issued a prescription for oxycodone even
though the undercover operative said he “had been high and drunk while
receiving controlled substance prescriptions” previously from Cham. On another
occasion, Cham prescribed oxycodone even though the undercover law enforcement
officer presented, in lieu of photo identification, a written notice that his
license had been suspended for driving under the influence.
Dr. Cham broke the Hippocratic Oath he
swore to uphold when he became a physician – instead of serving the public
good, his actions caused harm and death,” said DEA Special Agent in Charge
David J. Downing. “Cham was no longer functioning as a healer but a common drug
dealer, and his sentence should serve as a cautionary tale to other physicians
who would choose this path for the sake of greed.”
“Not only
did defendant Cham abdicate his oath as a physician, he deliberately caused
harm by continuously drugging addicts who were in need of rehabilitation,” said
Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field
Office. “The FBI will continue to work with our partners to end illegal drug
networks operating out of doctors’ offices.”
In his plea
agreement, Cham also agrees to forfeit to the government more than $60,000 in
cash that he admits are “proceeds of illegal activity.”
“While
exploiting his patients’ addictions for his own personal gain, Cham laundered
tens of thousands of dollars in cash and money orders through bank accounts
held in fake business names such as Good Life 2 LLC. The good life Cham created
for himself was fueled by a callous disregard for his patients’ well-being,”
stated R. Damon Rowe, Special Agent in Charge for IRS Criminal Investigation.
“IRS Criminal Investigation contributes our financial expertise in an effort to
stop criminals who profit from the illegal trade of dangerous narcotics and
take away any financial benefit they receive from their criminal activity.”
The
investigation into Cham was conducted by the Drug Enforcement Administration,
the Federal Bureau of Investigation Los Angeles and Portland Field Offices, IRS
Criminal Investigation, the Los Angeles County Sheriff’s Department’s Health
Authority Law Enforcement Task Force, the California Medical Board, and the LosAngeles Police Department.
The case
against Cham was prosecuted by Assistant United States Attorney Benjamin Barron
of the Organized Crime Drug Enforcement Task Force.
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