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The News record
SERVING THE PEOPLE OF MADISON COUNTY _ !NCE 901
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Vol. 84 No. 6 PUBLISHED WEEKLY IN THE COUNTY SEAT AT MARSHALL N C WEDNESDAY, February 8, 1984 25C
Bill Powell Fined In Medicaid Investigation
By ROBERT KOENIG
Mars Hill Mayor William P. Powell entered
a guilty plea in Wake County District Court last
Thursday to five counts of violating state phar
macy laws. Powell, a licensed pharmacist, was
fined $10,000 by District Court Judge George
Greene. Powell also entered a guilty plea in
Wake County Superior Court on behalf of the
Community Medical Center Pharmacy, Inc.
' (CMCP, Inc.) of which he is president.
Superior Court Judge Arthur Lane fined
CMCP, Inc. $40,000 for the fraud conviction.
The fine is to be paid as restitution to the North
Carolina Medical Assistance Program. Powell,
who was represented by Mars Hill attorney
Bruce Briggs, paid both the $10,000 and $4<j,000
fines before leaving the Wake County Court
House.
The guilty pleas were entered as part of a
negotiated settlement between Powell and the
attorney general's office. The court action
closes an investigation of CMCP, Inc. by the
Medicaid investigation unit of the North
Carolina Attorney General's office.
Investigator William Tucker told The News
Record that his investigation was begun last
fall following a complaint made by David
George, a former director of the Madison
Manor Nursing Center. In a letter to Dr. David
Work, chairman of the North Carolina Phar
macy Board, George charged Powell with
substituting generic drugs and samples for
prescriptions ordered for patients at the nurs
Pleads Guilty To Pharmacy Law Violations
ing home. George, while still serving as the nur
sing home director, terminated Powell's con
tract with the nursing home last summer. The
decision to terminate Powell was later over
turned by management of Beverly Enterprises,
operators of the nursing home, and George was
replaced by the home's current director,
Wayne Adams.
As a result of George's letter to the Board of
Pharmacy, the North Carolina Department of
Human Resources Division of Facility Services
also conducted an investigation last fall.
Several irregularities the investigation un
covered were later corrected. Thursday's con
victions were the first resulting from the in
vestigations. As part of the negotiated settle
ment with prosecutors, Powell will not be
charged with any other violations in connection
with his role as the nursing home pharmacist.
Speaking of the settlement, Bruce Briggs
told reporters, "The reason for Powell's
negotiating this settlement and making restitu
tion and paying the fine was to end the matter
without further litigation or involvement by
himself or any other person." Briggs added
that there would be no appeal of the fine or
restitution.
Court records indicate that Powell was
charged with substituting generic equivalent
drugs for prescriptions for four patients at
Madison Manor Nursing Center. The fifth viola
tion charged that Powell obliterated a label on a
sample drug package administered to a patient
BILL POWELL
at the nursing home.
Powell was charged with submitting false
claims for Medicaid payments because of the
substitutions. The bill of information presented
to the court states that on May 26, 1983, a
generic equivalent drug was substituted for a
prescirption for 50 milligrams of the drug
Benadryl ordered for Martha Sparks. The other
violations stated that on June 30, 1983, a generic
equivalent drug was substituted for a 10
milligram prescription of the drug Atarax
ordered for Buria Grigg. Also on June 30, the
charges state that a generic equivalent drug
was substituted for a 25 milligram prescription
of the drug Persantine ordered for Allie
Chandler, Powell was also charged with
substituting a generic equivalent drug for a 25
milligram prescription of the drug Atarax
ordered for Ollie Cody.
The fifth charge states that Powell crossed
out the word "sample" from a package of 5
milligrams of the drug Stelazine ordered for
Mary Lee Capps. < Continued on Page 4)
Former Director
Plans Lawsuit
Although the convictions of
William Powell and CMCP,
Inc. bring a state investigation
of pharmacy practices at
Madison Manor Nursing
Center to a close, the matter is
far from finished, according to
David George, a former direc
tor of the nursing home.
It was a letter from George
to Dr. David Work of the North
Carolina Pharmacy Board
that started the investigation.
George served as director of
the nursing home until last
summer when he was dismiss
ed following conflicts with
(Continued on Page 4)
Hunt Enters Senate Race
By DANIEL C. HOOVER
The News and Observer
WILSON - Gov. James B.
Hunt Jr., saying "it is time
that we took the North
Carolina approach, that
makes things work, to our na
tion's capital," formally an
nounced his candidacy Satur
day for the U. S. Senate seat
held by Republican Jesse A.
Helms.
With 1,500 to 2,000 neighbors
and political supporters from
across the state attending a
carefully orchestrated an
nouncement program at the
high school that bears his
name. Hunt officially set the
stage for. a classic political
showdown, one with national
implications.
"My friends, this election is
about the kind of future we are
going to create. And I intend to
look forward," Hunt said.
In a speech interrupted 21
times by cheers and applause.
Hunt never mentioned his con
servative opponent or attack
ed Helms directly.
The governor said he intend
ed to be a senator "who works
for a healthy and competitive
economy that creates jobs and
opportunities . . . who works
for a fair economy where tax
cuts go to working families
and the middle class, and not
just loopholes and tax shelters
for the rich."
"I intend to be a senator who
works for an America that has
the military strength to defend
freedom in the world and the
moral courage to save our
world from nuclear war."
Hunt also said he would
work to achieve "a strong and
vigorous and growing and con
fident America, an America
that has enough room for
every single person, young
and old, man and woman,
black and white, to achieve
their dreams."
At that point. Hunt ended
years of speculation about his
future political direction with
a declaration of "my can
didacy for the United States
Senate."
One of the three high school
bands packed into the gym
broke into the Democratic
Party's traditional battle
tune, "Happy Days Are Here
Again," as the crowd roared
GOV. JIM HUNT
and began 52 seconds of ap
plause and rhythmic clapping.
Little in the production ap
peared to have been left to
chance, and Hunt's image was
spotlighted carefully. Many of
those who attended drove in on
(Continued on Page 10)
Hendon
Files
FORMER CONGRESSMAN BUI Hendon is |
shown at his announcement being presented
with the names of 722 individuals, from the 17
$1.00 each I pay hi fittm fee l?
Marshall Police Crackdown
Draws Criticism
ByROBERT KOEN1G
Marshall mayor Betty Wild
had water bills, insurance and
block grants on her mind, but
Marshall residents wanted to
discuss the town's new traffic
crackdown at Monday night's
meeting of the Board of
Aldermen.
The mayor and aldermen
discussed water bills and
grant applications before the
mayor asked if there were any
questions from the audience of
20 Marshall residents who at
tended the meeting. When the
floor was opened, several
residents lodged complaints
against the town's two new
police officers. Both Kenny
Lunsford and Bill Hodge com
plained that the officers were
creating a problem for Mar
shall businesses by harassing
motorists.
Hodge told the board,
"These guys are like a chicken
on a June bug every time so
meone turns the comer. This
is not enforcement. This is
harassment. I've seen more
racing since you've started
your so-called enforcement."
Commissioners Hold
Brief Session
The Madison County Board
of Commissioners held an ab
breviated meeting Monday
night in the musty court
bouse. The commissioners
were to hear a proposal from
Asheville Buncombe
Technical College president
Harvey Haynes regarding the
school's plan to conduct adult
education classes In the coun
ty. Monday's bad leather
forced a cancellation of
Haynes appearance
an emergency management
plan for the county. Dr. Don
Anderson of the college will
serve as coordinator of the
project, which will be funded
by a $12,566 federal grant from
the Emergency Preparedness
Agency
County finance officer
David Caldwell reported that
property tax collections are
lagging behind Caldwell said
baa
>lh
Lunsford complained about
the officers issuing a ticket for
running a stop light to a school
bus driver, Chuck Chandler.
Lunsford said he saw the inci
dent and that Chandler passed
through the light while it was
yellow. He said the light
changed as the school bus
ter off letting him go through
the light? We have to decide
what our priorities will be
here."
Wild added, "If it goes to
court and we're proven wrong,
we'll do everything we can to
see that he gets his license
back."
The police department's en
forcement of parking regula
tions also brought some
criticism. Wild said that the
town board is caught in what
she termed a "Catch-22"
situation. "Some of the mer
chants say we need more
parking and others say we
" These guys are like a chicken on a June bug
every time someone turns the corner. "
passed underneath it.
Chandler was driving a school
bus for Marshall Primary
School! He was relieved of his
duties following the ticket.
Mayor Wild said that the
board had discussed the inci
dent earlier. She told
Lunsford, "I felt bad about his
losing his license, but he had a
busload of kids. If he had got
ten hit while going through the
light, would we have been bet
Both Lunsford and Hodge
complained about the officers
chasing motorists through
town. Wild said that the police
had only been involved in two
chases. She said that one
chase was made in order to
apprehend a drunken driver.
The News Record later learn
ed that a second chase lead to
a reckless driving citation be
ing issued to Leonard Wills on
Anderson Branch
have no problem What are we
supposed to do?" the mayor
asked. She urged all mer
chants to come together to
discuss the parking situation
at the next meeting of the mer
chants' association.
The board also heard from
Leroy Gosnell who asked what
the town had done with an ap
plication for the transfer of his
police certification. Gosnell
Bruce Briggs Files
For State Senate
Three last-minute can
dictates filed with the Madison
County Board of Elections on
Monday, the final day for
entering the May 8 primary.
John Dodson, a member of
the Marshall Board of
Aldermen, filed for the
Democratic nomination for
county tax collector Dodson
will challenge incumbent
Harold Wallin in the May S
primary. .
Jeanette Nix filed for the