Warren County Physician and Nurse Practitioner Pay $500,000 to Resolve Unlawful Opioid Prescribing and Fraudulent Conveyance Actions; Barred from DEA Registration for 20 Years

ALBANY, NEW YORK - Dr. Douglas Cline and nurse practitioner Laurie McKenna have agreed to pay $500,000 to resolve civil actions brought by the United States involving unlawful opioid prescribing practices and a fraudulent conveyance action against Dr. Cline, announced First Assistant United States Attorney John A. Sarcone III. This settlement is part of the Department of Justice's 2026 National Health Care Fraud Takedown.

Dr. Cline formerly owned and operated Chronic Pain Management (CPM), a cash-pay medical practice in Queensbury, New York focused on prescribing controlled substances. Under the settlement, Dr. Cline and Ms. McKenna are barred for 20 years from applying for or holding a DEA controlled-substances registration.

As reflected in the settlement agreement, the defendants admitted and accepted responsibility for conduct involving a practice in which several patients received high-dose opioid medications, often in combination with other controlled substances. Access to prescriptions was tied to recurring payments, including in circumstances where patients were not regularly examined by a provider.

"Douglas Cline operated a high-volume, cash-pay medical practice in which hundreds of patients received high-dose opioid prescriptions, often in combination with other controlled substances. Access to those medications was tied to recurring payments, including in circumstances where patients were not seen by him or another provider," said First Assistant United States Attorney John A. Sarcone III. "After federal scrutiny began, Dr. Cline transferred his lake house valued at over $1 million to his ex-wife to diminish assets that could pay an eventual judgment. This resolution holds him accountable for his prescribing conduct and his attempts to frustrate collection, and reinforces that such conduct will meet continued aggressive enforcement action."

"The illegal prescribing practices detailed in this settlement were especially egregious in light of the ongoing opioid epidemic, and they were committed without regard for the proper care of Dr. Cline's patients," said Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG will continue to work with our law enforcement partners to ensure that health care providers who are involved in schemes that threaten patient safety are held accountable."

In March 2024, the United States filed a civil action against the defendants' involving prescriptions issued to a combat wounded military veteran and his spouse, including escalating doses of fentanyl, oxycodone, and benzodiazepines despite warning signs of misuse and dependency. The complaint further described continued prescribing to these individuals over extended periods, including while they resided in the southeastern United States and were not regularly examined in person, while continuing to pay CPM appointment fees for continued access to prescriptions.

After learning of the government's investigation and his potential liability, Dr. Cline transferred substantial assets, including a residence in Bolton Landing, New York, to his then-spouse. The United States later filed a separate civil action alleging that the transfer constituted a fraudulent conveyance intended to hinder federal recovery in the first action.

Dr. Cline surrendered his DEA Certificate of Registration on August 29, 2025. Ms. McKenna's registration expired on January 31, 2026.

Under the settlement, both defendants are barred for 20 years from applying for, renewing, or reinstating DEA controlled-substances registration.

"Douglas Cline's reckless prescribing practices caused needless harm to TRICARE beneficiaries and placed profit ahead of proper medical care," said Christopher M. Silvestro, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office. "As the investigative arm of the Department of War's Office of Inspector General, we are committed to protecting the health and well-being of our service members and their families."

The case was investigated by the DEA Albany District Office SPEAR Group, the DCIS Syracuse Resident Agency, and the U.S. Department of Health and Human Services, Office of Inspector General, with assistance from the Defense Health Agency, the New York State Department of Health Bureau of Narcotic Enforcement, the New York State Police, and the Warren County Sheriff's Office.

Assistant United States Attorneys Christopher R. Moran and Adam J. Katz represented the United States.