Pharmacist's wife to pay $1.85 million to victims of scheme

KANSAS CITY, Mo. -- The wife of Robert Courtney, the Kansas City pharmacist who admits diluting the strength of cancer drugs, has agreed to pay $1.85 million to people victimized by his scheme, her attorney says.

The amount would be in addition to money Courtney has agreed to pay victims as part of any court-ordered restitution in the criminal case against him.

Courtney awaits sentencing in U.S. District Court after pleading guilty in February to adulterating, misbranding and tampering with chemotherapy medications he mixed for and sold to oncologist Verda Hunter.

His assets, mainly stocks and bonds with values estimated at between $8 million and $12 million, were frozen after the government filed a civil lawsuit against him last year.

In March, prosecutors and Courtney's attorneys agreed to release the seized assets to satisfy restitution claims in the criminal case.

Shortly before his assets were seized Courtney transferred some of his money to his wife, Laura Courtney. The settlement with her, announced Tuesday by her lawyer, Charley German, was negotiated after attorneys representing plaintiffs in civil lawsuits against Courtney demanded return of the money.

"What we've attempted to accomplish is for Mrs. Courtney to be able to raise and educate her children and to get on with her life," said German. "She's not involved with any of the cases and had nothing to do with the pharmacy operations. But she's willing to give back some of the assets to the victims so she can avoid being entangled in these cases."

Laura Courtney has three children -- twins by her marriage to Courtney and a daughter from her previous marriage.

In addition to giving up $1.85 million, she has put up for sale the family home in Platte County, listed at $750,000.

The Courtneys are joint owners of the house, and proceeds from its sale will not be part of the restitution agreement.

Attorneys for the plaintiffs in the civil lawsuits declined to comment on the settlement, citing a protective order.

Over 300 suits filed

More than 300 lawsuits have been filed in Jackson County Circuit Court naming as defendants Robert Courtney and the pharmaceutical companies that made the drugs he diluted.

The lawsuits allege the companies knew or should have known that Courtney was diluting their products but failed to take steps to stop him. The companies deny those allegations.

German said the settlement with Laura Courtney calls for the $1.85 million to be deposited in two trust funds. The first, in the amount of $1.35 million, will be used to pay claimants who filed lawsuits before April 9. The second, in the amount of $500,000, will be used to pay claimants who filed lawsuits after that date.

Since pleading guilty Courtney has told federal agents his drug dilution scheme was far more extensive and went on longer than initially thought. Federal authorities now say the scheme might have affected as many as 400 doctors, 4,200 patients and 98,000 prescriptions.