Atlantic Biologicals Enters Deferred Prosecution Agreement in Opioid Distribution Scheme

Key Takeaways: 

• Atlantic Biologicals entered a 2-year deferred prosecution agreement and admitted that its business unit, National Apothecary Solutions (NAS), knowingly sold more than 14 million doses of opioids and opioid potentiators to Houston-area pill mill pharmacies, generating at least $2.5 million in gross proceeds.
• The case underscores that Drug Enforcement Administration (DEA)-registered distributors may face criminal liability under the Controlled Substances Act if they knowingly supply controlled substances that will be dispensed outside the usual course of professional practice and without a legitimate medical purpose.
• Atlantic Biologicals agreed to pay a $450 000 criminal penalty, implement enhanced compliance measures, cooperate with the US Department of Justice (DOJ), and shut down the NAS business line, with the charge subject to dismissal if the company complies with the deferred prosecution agreement.

Atlantic Biologicals Corporation, a Miami-based pharmaceutical wholesaler, has entered into a 2-year deferred prosecution agreement (DPA) with DOJ in connection with a criminal information filed in the Southern District of Florida.

The company was charged with one count of conspiracy to unlawfully distribute and dispense, and possess with intent to distribute, controlled substances. As part of the agreement, Atlantic Biologicals admitted that its business unit, NAS, sold opioid pills to certain Houston-area “pill mill” pharmacies, knowing and intending that the pharmacies would dispense the drugs outside the usual course of professional practice and without a legitimate medical purpose.
NAS is expected to cease operations in or about January 2026.

Admissions Involving Opioid and Controlled Substance Sales

According to court documents and admissions, from 2017 through May 2023, NAS sold millions of highly addictive opioids to Houston-area pill mill pharmacies. These included oxycodone, hydrocodone, and hydromorphone (described as “Commonly Abused Opioids”), as well as other controlled substances such as carisoprodol and alprazolam, referred to as “potentiators” because they can enhance opioid effects.

Collectively described as “Commonly Abused Prescription Drugs,” these medications were allegedly diverted by pill mill pharmacies into the Houston-area black market.

As part of the DPA, Atlantic Biologicals acknowledged responsibility for the conspiracy and admitted that NAS realized gross proceeds of at least $2 508 735.85 from sales to specifically identified Houston-area pill mill pharmacies. The company further admitted that these sales were made knowing and intending that the pharmacies would dispense the drugs outside the usual course of professional practice and without a legitimate medical purpose.

In total, NAS sold more than 14 million doses of opioids and opioid potentiators to pill mill pharmacies in what the DOJ described as a diversion “hot zone” in Houston, Texas.

Alleged Red Flags and Compliance Failures

The DOJ stated that NAS sold the commonly abused prescription drugs at a large markup and employed compliance measures that were allegedly circumvented to facilitate unlawful sales. These measures included requiring pharmacies to order controlled substances in a specific ratio to noncontrolled purchases and setting monthly ordering limits.

According to court documents, many NAS pharmacy customers exhibited red flags for diversion, including:

• Rarely ordering controlled substances other than the commonly abused opioids and potentiators
• Routinely ordering the maximum quantities permitted by NAS
• Expressing strong preferences for certain pill colors and shapes
• Ordering noncontrolled drugs in quantities designed to meet NAS-imposed ratios
• Paying well above market prices
• Maintaining hours inconsistent with legitimate pharmacy operations
• Submitting due diligence photographs depicting strip mall locations with barred windows and minimal visible inventory

Controlled Substances Act Framework

The Controlled Substances Act (CSA) makes it unlawful to knowingly or intentionally manufacture, distribute, or dispense a controlled substance except as authorized. DEA-registered manufacturers and distributors are permitted to handle controlled substances within the legitimate distribution chain.

However, it is unlawful for a registrant to distribute opioids such as oxycodone or hydrocodone when the registrant knows or intends that the drugs are being sought for an illegitimate purpose. Pharmacies may dispense these drugs only pursuant to valid prescriptions issued for a legitimate medical purpose by a practitioner acting in the usual course of professional practice.

Criminal Penalty and Compliance Obligations

Under the terms of the deferred prosecution agreement, Atlantic Biologicals agreed to:

• Pay a $450 000 criminal penalty, adjusted based on its ability to pay
• Provide ongoing cooperation and disclosures to the DOJ
• Implement a compliance and ethics program designed to prevent violations of the CSA
• Report to the DOJ regarding remediation and compliance implementation

The DOJ stated that it reached the resolution after considering factors including the seriousness of the conduct and that, in May 2023, Atlantic Biologicals voluntarily ceased selling controlled substances to independently owned pharmacies and later agreed to close the NAS business line responsible for the conduct.

Although the company did not voluntarily and timely self-disclose the conduct, it received cooperation credit for providing factual presentations, organizing financial and other evidence, and assisting with review of documents seized pursuant to a search warrant.

Related Guilty Pleas

Several individuals connected to NAS and affiliated entities have previously pleaded guilty in related cases:

• Joshua Weinstein, former president of NAS
• Derrick Chad Atkinson, former independent sales representative contracted by NAS
• Jason Smith, former owner of Proven Rx Sales LLC, a consulting company that worked with NAS

Each pleaded guilty to one count of conspiracy to unlawfully distribute and dispense, and possess with intent to distribute, controlled substances.

Additionally, Joseph Pesserillo and Cassandra Rivera, former employees of Proven, pleaded guilty to one count of conspiracy to use a communications facility to further the commission of a felony-controlled substance offense.

Under the deferred prosecution agreement, the criminal charge will be deferred for 2 years. If Atlantic Biologicals complies with the agreement’s terms, the charge may ultimately be dismissed.

Reference
Atlantic Biologicals Corporation enters into deferred prosecution agreement in opioid distribution scheme. US Department of Justice. Published January 13, 2026. Accessed February 18, 2026. https://www.justice.gov/opa/pr/atlantic-biologicals-corporation-enters-deferred-prosecution-agreement-opioid-distribution