Retailer settles in meth case

N. Texas: Walgreen firm accepts responsibility in illegal drug-making

The Dallas Morning News

TIM WYATT Staff Writer

July 29, 2005

PLANO — Federal authorities described a $1.3 million settlement with Walgreen Corp. on Thursday as a major breakthrough in pushing retail pharmacies to keep a closer eye on the sale of over–the–counter medicines used to make illegal drugs.

Matt Orwig, U.S. attorney for the Eastern District of Texas, said the national chain agreed to accept civil responsibility for selling methamphetamine cooks and dealers large amounts of pseudoephedrine out of their northeast Texas stores. Thursday's civil settlement came on the heels of a two–year drug investigation that netted 25 criminal convictions of methamphetamine cooks and dealers, and shut down five meth labs in Denton and Grayson counties, Mr. Orwig said. "This is a major, groundbreaking settlement that's going to help fight what's become a major drug problem in northeast Texas," Mr. Orwig said. Pseudoephedrine is a common ingredient in cold remedies that can be used to make methamphetamine.

Michael Polzin, a spokesman for Walgreen, said the national chain agreed to settle and work with authorities to put both sides "on the same page to curb the production of meth through over–the–counter drugs." "This was well before today's level of awareness developed on the problem of methamphetamine abuse," Mr. Polzin said. "We're also following new state laws in other parts of the country where sales restrictions have been put into place."

New law

On Monday, a law goes into effect in Texas that limits over–the–counter sales of pseudoephedrine to 6 grams — or two packages. In May, Wal–Mart Stores Inc., Kmart Holding Corp., CVS Corp., Rite Aid Corp. and Walgreen announced that they would move medicines with pseudoephedrine behind counters. Walgreen has also agreed to install a computerized sales monitoring system in North Texas and Oklahoma to track sales of more than 9 grams of pseudoephedrine in a 30–day span to any individual, Mr. Orwig said.

Denton bust

Local and federal authorities traced the pseudoephedrine to a Walgreen's pharmacy in Denton after a September 2002 drug bust by Denton police. Federal agents then tracked a single–day sale at that pharmacy of 53,000 tablets of pseudoephedrine to one meth dealer in March 2002. Gary Olenkiewicz, special agent in charge of the Drug Enforcement Administration's Dallas field office, said that purchase alone was enough to help make almost 8 pounds of the highly addictive stimulant that sells for up to $15,000 a pound.

The dealer tied to that large buy received more than 10 years in federal prison for his role in a meth ring that operated out of Cooke, Denton and Grayson counties. A surveillance tape captured the man pushing two carts loaded with cold pills to the checkout counter. The local investigation led to the arrest and conviction of a former University of North Texas professor in the same ring. Paul Schlieve received more than 13 years in federal prison on narcotics conspiracy charges in August, after his arrest in Pilot Point a year earlier in which police found more than 200 grams of methamphetamine and guns in the truck he was driving. He was fired from UNT in July 2002 over accusations that he paid a friend university grant money for work he never performed at the institution. Mr. Schlieve was among 25 people in the methamphetamine ring indicted in federal court. All but Mr. Schlieve pleaded guilty in return for lighter sentences, and all testified against him in his trial.

Pleased with deal

Denton County Sheriff Benny Parkey, whose office worked alongside federal agents in the investigation, said Thursday's settlement was a welcome sight in battling meth sales in North Texas. "Pseudoephedrine is something you find at your local stores," Sheriff Parkey said. "No one's smuggling it over the border like heroin or cocaine."

Donna Fielder of the Denton Record–Chronicle contributed to this report.