Roanoke, VA — A former physician who operated out of several Virginia pain clinics was sentenced to 40 months in federal prison on Tuesday for his role in an opioid distribution and healthcare fraud scheme that endangered patients and exploited the medical system for profit.
Dr. Duane Dixon, 66, of Bedford, Massachusetts, was also ordered to pay a $35,000 fine and $200,000 in forfeiture. He previously pleaded guilty to conspiring to illegally distribute opioids, including fentanyl and oxycodone, and failing to report healthcare fraud at L5 Medical Holdings, which operated pain clinics in Lynchburg, Madison Heights, Christiansburg, and other locations.
According to federal prosecutors, Dixon pre-signed dozens of blank prescriptions that clinic staff later filled in with Schedule II opioids for patients who had never been evaluated by a licensed physician. He also admitted to allowing unauthorized individuals to use his DEA registration number to prescribe Suboxone, a controlled substance used to treat opioid addiction.
“These were not simple oversights,” said Acting U.S. Attorney Zachary T. Lee. “Dr. Dixon prioritized profit over patient care and fueled the opioid epidemic that continues to devastate communities across Virginia.”
The court also heard that Dixon signed off on falsified patient records to ensure insurance payments, despite not having treated the individuals. In one case, he approved records submitted by Dr. Wendell Lewis Randall, who was previously sentenced to 18 months in prison for his role in the scheme. Dixon acknowledged Randall’s notes were so inadequate they wouldn’t pass a medical school review.
Authorities said Dixon was warned early in his time at L5 that the operation resembled a “pill mill.” Some pharmacies even refused to fill his prescriptions due to suspicion over the volume and legitimacy of the orders.
As part of his guilty plea, Dixon agreed to surrender his medical licenses permanently and never practice medicine again.
Federal and state officials emphasized the broader damage caused by the clinic’s practices.
“Dr. Dixon clearly showed a lack of respect for human life,” said DEA Washington Division Special Agent in Charge Ibrar A. Mian. “His reckless and fraudulent practices prioritized profits over the lives of others.”
Five other individuals associated with L5 have already pleaded guilty, including Charles Wilson Adams, Jr., who falsely posed as a trained medical professional and was sentenced to two years in prison, and nurse practitioner Debra Shaffer, who also received jail time and a fine.
L5’s owner John Gregory Barnes, former COO Jennifer Adams, and the company itself have pleaded guilty and are awaiting sentencing later this year.
