A former doctor has been sentenced to 40 months in federal prison for his involvement in health care fraud and the illegal distribution of opioids at pain clinics in Central and Southwest Virginia. Duane Dixon, 66, from Bedford, Massachusetts, was also ordered to pay $200,000 in forfeiture and a $35,000 fine. He had previously pleaded guilty to conspiring to distribute fentanyl and other opioids without legitimate medical purposes and failing to report fraudulent activities at L5 Medical Holdings’ clinics.
Dixon agreed as part of his plea deal to surrender his medical licenses permanently. Court documents revealed that he pre-signed blank prescriptions which were filled out by staff for Schedule II opioids like fentanyl and oxycodone, distributed without patients seeing a qualified medical provider. Dixon admitted awareness of these practices after being labeled a “pill pusher” by a local pharmacist.
He further facilitated illegal distribution of Suboxone by sharing his unique identification number with unqualified providers who then used it for prescriptions. To secure insurance payments, Dixon acknowledged approving patient files without having treated the patients.
Another involved party, Wendell Lewis Randall, received an 18-month sentence in March 2024 for issuing illegitimate prescriptions. In recorded interviews played during sentencing, Dixon criticized Randall’s documentation as inadequate even for a medical student.
Five additional individuals have pleaded guilty related to drug or fraud offenses at L5 between 2015 and 2020. Among them are Charles Wilson Adams Jr., who was falsely represented as a trained professional by L5 and sentenced to two years’ imprisonment in 2022; nurse practitioner Debra Shaffer also faced jail time and fines in 2023.
L5’s owner John Gregory Barnes, former COO Jennifer Adams, along with the company itself have pleaded guilty and await sentencing later this year.
The investigation was conducted by the Drug Enforcement Administration, U.S. Department of Health and Human Services – Office of Inspector General, Virginia State Police, and Virginia Attorney General’s Office – Medicaid Fraud Control Unit. The prosecution was led by Assistant United States Attorneys S. Cagle Juhan and Jason Scheff along with Special Assistant United States Attorney Janine Myatt.
