THE PIN RX FIASCO
PART III FINAL SEGMENT

“The whites told only one side.
Told it to please themselves.
Told much that is not true.
Only his own best deeds, only the worst
Of the Indians has the white man told.”
Yellow Wolf, Nez Perce (1877)

Today in 2007 one hundred and thirty years later the same words hold truth.
When the big news hit the headlines on the front page of the Bangor Daily News on Thursday March 1, 2007 read “State probes PIN RX drug distribution” The Statewide media had a field day with TV News making this their feature story. (Channel Seven had a whole series on it.) Newspapers were giving this media event statewide coverage. An Indian business under investigation makes good copy. The Attorney Generals office stepped into the investigation and between that office and the pharmacy board portrayed PIN RX as an operation run by criminals, naming PIN RX employees as criminals and the PIN RX Advisory board as accomplices.

Thursday May 3rd, 2007 headline read “Testimony: PIN RX board failed to act” Penobscot Nation tribal members didn’t know what to think, this type of publicity was a real blow to morale as the tribe was still feeling the sting of a nasty anti-casino campaign a few years earlier. Chief Kirk Francis spoke in favor of the Nations honesty and integrity. As a Sunami wave of negative publicity hit Indian Island it created an atmosphere of tension and distrust amongst our own people. Rumors started to fly and individuals were being blamed for this fiasco. Yes it had a huge effect on the tribal community and on me.

I remembered reading a newspaper article stating that the Senate GOP office had questions on the governor’s role of PIN RX oversight. I searched my files and found the article dated February 6, 2007 on the front page of the inside State section. “State GOP leaders question PIN RX oversight” I re-read the article and noticed that the GOP Senate office had submitted a “State Freedom of Access Law request to Governor Baldacci seeking public documents relating to PIN RX .” Senate Minority Leader, Carole Weston of Montville, had made the request.

The article also stated… “WMTW-TV has reported a complaint that PIN RX was selling controlled substances through questionable internet sites led to a Maine Board of Pharmacy investigation.” I decided to go to Senator Weston and see if she would release any information her office had uncovered through the receipt of these documents. I was certain the Penobscot Nation was not the only culprit here.

The pharmacy board and the State Attorney Generals office had so far only focused their investigation on PIN RX and the Penobscot Nation. I was certain Governor Baldacci and his administration were involved and should be investigated as well.

The Senator was more than willing to share the public information she had received from the Governor’s office. The Governor’s office sent over 4,000 pages of information in several batches starting in February. This information revealed just how much the Governor and his office were involved throughout the life of PIN RX.

The documents provided a very limited but revealing view of this intricate relationship. The following information was contained within the received documents:

In 2005, the Governor’s office assisted PIN RX to obtain a $400,000 grant to rehabilitate an old warehouse into PIN RX’s main operations center on Indian Island. This total project was a $1.45 million investment.
o Jude Walsh, Special Assistant, Governor's Office of Health Policy and Finance, and Orman Whitcomb, Maine Department of Economic and Community Development, assisted with the process and completing the applications.
o Final approval of Maine Department of Economic and Community Development was required.

PIN RX received a $500,000 Rural Business Enterprise Grant from the U.S. Department of Agriculture to help the Penobscot Indian Nation “implement” PIN Rx.

May of 2005, PIN RX applied to Jack Cashman, Commissioner of the Maine Department of Economic and Community Development, for inclusion as a Pine Tree Zone candidate .
o PIN Rx was denied this request. (Unknown why)

January of 2006
Jude Walsh, Special assistant to the Governor’s Office was appointed to the PIN Rx advisory board by the PIN RX Board of Managers
The State of Maine and PIN RX entered into a Memorandum of Understanding to define the states role in assisting the company and tribe. The understanding was that the state:
Provide technical assistance, assist in the development of a business plan, provide outreach to public purchaser groups, promote collaboration with DECD regarding access to grants and Pine Tree designated zones, provide education and aggregate utilization data and information on the State of Maine Pharmacy Benefits.

State Did A Financial Review:
Mark Chavaree, Legal Counsel for PIN RX, asked that the State to do a review of the financial operations of PIN RX and make suggestions on how to move forward. This request was made directly to Tom Federle, former Chief Legal Counsel for Governor Baldacci.
Two DHHS auditors traveled to Indian Island to meet with PIN RX staff to do the financial review.
The review occurred less than one week after being requested by PIN RX.

June 7, 2006 / A Review document out-lines PIN RX’s development and the States involvement: Sent from Sara Gagne-Holmes to Trish Riley.
Edward Karass, Maine’s State Controller, was also asked to assist in the review.

Jude Walsh, Special Assistant to the Governor’s Office was intimately involved with the development, management, and day-to-day operations of PIN RX. She provided assistance with the minutest of details from obtaining letterhead, envelopes and business cards, as well as the following:
Contacting furniture vendors to ensure timely delivery, Designing and writing television and radio advertisements, sending letters to MaineCare enrollees, primary care physicians, State employees, etc. encouraging them to use PIN RX for their pharmacy needs, inquiring if PIN RX would be able to receive foreign investments, Obtaining a license to dispense drugs in Maine through the Board of Pharmacy by having Commissioner Anne Head meet with the Penobscot Nation, applying for state and federal surplus property through the Department of Administrative and Financial Services, drafting the Request for Proposal’s (RFP) for the dispensing hardware and computer software for PIN RX, drafting a business plan, DECD grant application, financial cash flow sheets, etc. Working with Cardinal Health, the wholesale supplier for PIN RX, in contract negotiation, credit applications, etc.

July 2005, Jude Walsh worked with MedicalWeb.com to transition their business to PIN RX.

On May 26, 2006. Mark Chavaree, Legal Council for PIN RX sent the Drug Enforcement Administrations guidelines for dispensing and purchasing controlled substances over the internet to Jude Walsh Additionally, he sent a news article titled “DEA Cracks Down on Illegal Internet Pharmacies” on the same date.

Jude Walsh traveled to Indian Island several times a month at state expense to attend PIN RX Board meetings. In Jude Walsh’s interaction with PIN RX, Reggie Gracie, and Mark Chavaree, we know that she knew:
In June of 2006 that PIN RX was thinking of transitioning away from the internet prescription business to “limit its potential exposure”.

Reggie Gracie, Pharmacist and Chief Executive Officer at PIN RX, had prior relationships with the State of Maine in an official capacity. His resume states that he had appointments on the:
oMaine Office of Substance Abuse, Medical Advisory Board.
oMaineCare Drug Utilization Review Committee.
oMaine Board of Pharmacy- Subcommittee on rulemaking.
oLegislative Commission to Study Bulk Purchasing of Prescription Drugs and Medical Supplies.

Reggie Gracie also worked at Augusta Mental Health Institute from 1996-97

The Rockport Group of Camden provided consulting assistance to PIN RX
According to notes on activities of the Rockport Group they “uncovered criminal activity” and may have suggested the Penobscot Indian Nation should “get … out of PIN RX”

November of 2006 Trish Riley wrote a letter to PIN RX stating her concerns with a second complaint being filed with the Board of Pharmacy against PIN RX. She asked PIN RX to address these issues proactively.

The information uncovered by the freedom of information act request shows that the Penobscot Nation was not the sole entity involved with the project and that the State of Maine took the lead and appeared to be in full control of this operation. A detailed investigation into State activity needs to be conducted.

The Governor of this State and his staff need to be held accountable. Was there criminal activity? That should be investigated thoroughly. The Department of Justice should be brought in. It’s time Maine Indians stop being used and abused in this State. It’s time our voices are heard and we fight back.

Today in 2007 the words of Yellow Wolf remain true
“The whites told only one side…told much that is not true only his best deeds, only the worst of the Indians..” It’s time to tell our story.