Tuesday, July 07, 2009
Pikeville Medical Company Owners Sentenced
According to a U.S. District Court in Louisville, 60 year old Carolyn Sue Davis and 76 year old Otis Davis, both of Pikeville, were sentenced July 1st. to two years supervised release. The two owners of J&J Medical Inc. were sentenced for accepting kickbacks of more than $55,000 from Life Medical Systems, a pharmaceutical mail-order company to which they referred patients from 2003 to 2004. Carolyn Davis was sentenced to 8 months, to be served concurrently with a 5 year sentence on a previous conviction in a 2005 fraud case. Otis Davis was convicted in the case and was released in the fall of 2008. Each will be fined $800. In 2005, when the Davises were found guilty, they were also ordered to pay restitution of $171,000. In a separate case last year, a civil judgment of more than $433,000 was won against them. DeWayne Logan, of Ohio, part owner and operator of Life Medical, was sentenced to six months home incarceration, two years probation and fined $500.