LOS ANGELES >> A Covina doctor accused of prescribing a powerful painkiller to an undercover investigator, then laundering the proceeds, agreed to plead guilty Thursday to two federal charges, officials said.
Dr. Daniel Cham, 48, of Covina — who operated medical offices in La Puente and Artesia — agreed to enter guilty pleas to one count of distribution of oxycodone and one count of money laundering, US Department of Justice spokesman Thom Mrozek said in a written statement.
“Painkillers like oxycodone can be life-threatening to those who abuse them,” US Attorney Eileen M. Decker said. “Many of the prescription drugs that find their way to the street come from doctors who prescribe them without medical justification. This defendant put lives at risk for money, making him no different than street-level drug dealer.”
Cham admitted that he wrote prescriptions for oxycodone for an undercover agent at his La Puente office three times in 2014, Mrozek said.
Each time, he accepted $200 to $300 in money orders in exchange, officials said. On at least one occasion, Cham then deposited the funds into a bank account in the name of another business.
The deposits were made in order to “conceal and disguise the nature and source of the money order,” according to the plea agreement.
Cham wrote prescriptions for oxycodone for an undercover agent at his La Puente office three times in 2014, Mrozek said. Each time, he accepted $200 to $300 in money orders in exchange.
“As discussed in the affidavit, Cham issued a prescription for oxycodone even though the undercover operative said he ‘had been high and drunk while receiving controlled substance prescriptions’ previously from Cham.” Mrozek said. “On another occasion, Cham prescribed oxycodone even though the undercover law enforcement officer presented, in lieu of photo identification, a written notice that his license had been suspended for driving under the influence.”
Cham often saw patients between 8 p.m. and 2 a.m. on weekends, but post-dated prescriptions to they would appear to have been issued on weekdays, officials said.
The doctor wrote more than 5,500 prescriptions for powerful drugs such as oxycodone and hydrocodone over a one-year period ending in March of 2014, Mrozek said. “And he issued more than 42,000 such prescriptions since July 2010.”
Cham is expected to formally enter his guilty plea April 4 in federal court in Los Angeles.
He faces a maximum sentence of 20 years in prison for each of the two felony counts he had admitted to, according to Mrozek. He also agreed to forfeit more than $60,000 in admitted proceeds from his crimes.
A federal grand jury returned a 31-count indictment against Cham in October of 2014. If convicted as originally charged, he could have faced more than 300 years in federal prison.
Dr. Daniel Cham Plea Agreement
