Owner of Johnstown drug treatment clinic indicted on drug, money laundering charges

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By Amanda Klein | February 8, 2019

The owner of a substance abuse clinic was indicted Tuesday by a federal grand jury on charges of illegally dispensing controlled substances and money laundering.

Stephen K. Shaner, 69, of Bulger, owner of SKS Associates, Inc., is facing a five-count indictment alleging that between May 2012 and April 2018, he conspired with Dr. Michael Cash and Dr. Ruth Jones to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed the drugs.

The indictment also alleges that Shaner submitted fraudulent claims to Medicare, for payments to cover the costs of the buprenorphine.

Shaner is also alleged to have used the proceeds of the drug activity to pay for personal obligations in violation of  money laundering laws.

The two doctors named in the indictment have pleaded guilty and are awaiting sentencing.

“We have made significant progress in combatting the opioid epidemic in the Western District of Pennsylvania,” said U.S. Attorney Brady. “Overdose deaths are down overall in our District. But our work has not ended. We will continue to investigate and prosecute those who prey on people with opioid addiction.”

If convicted on all the charges Shaner faces up to 60 years in prison, a fine of $1,750,000 or both.

Amanda Klein can be contacted at amanda.klein@grantstreetnews.com

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