Wednesday, January 11, 2012

Records seized at Ketchum pharmacy

Authorities investigating possible insurance fraud

Express Staff Writer

The Blaine County Sheriff's Office reported Monday that "several years" of pharmaceutical records were seized Thursday evening after a search warrant was served at Chateau Drug in Ketchum.

Sheriff Gene Ramsey said the seizure was made in connection with a possible insurance fraud investigation that has been underway for 10 months. Also involved in the investigation are the Idaho Attorney General's Office, Blue Cross of Idaho and the Idaho Department of Insurance.

Ramsey said the warrant, served at 6:45 p.m., was delivered simultaneously with another search warrant served at the home of a Chateau Drug pharmacy employee on Leadville Avenue in Ketchum.


The sheriff said 29 investigators searched the pharmacy and the employee's home throughout the night, not finishing until 6:30 a.m. on the following morning. Ketchum and Sun Valley police departments and other investigating agencies assisted the Sheriff's Office.

He said numerous documents were seized or copied onto electronic equipment provided by the FBI.

"What comes out of this is yet to be determined," Ramsey said. "The case is pending and no arrest has been made. Basically, we're looking at insurance fraud."

Ramsey said he could not say when additional information would be released, noting that analysis of the seized materials could be a lengthy process. The Sheriff's Office obtained the search warrants through a probable-cause affidavit that had been submitted to a judge.

Chateau Drug, more formally known as Chateau Drug & True Value Hardware, has been located at Giacobbi Square in Ketchum since the business opened in 1970. In 2007, owners Gene Steiner, Keith Anderson and Don Leonard sold Chateau Drug to California businessman Ken Sangha.

Terry Smith:

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