Statement of Matthew Blair Regarding Resolution of the Federal Indictment

Related to Past Marketing of Pharmaceutical Products by Blair Pharmacy

December 3, 2021

Today, I wish to share that I have elected to put an end to the years-long federal criminal
prosecution against me regarding the ownership and operation of my former business,
Blair Pharmacy. I have done so by entering a plea to one count of paying
reimbursements in the form of commission payments to an independent marketing
agent who was contracted to market the products and services of the pharmacy. As part
of this agreement, the Government has agreed to dismiss all fraud-related allegations
contained in the indictment. This dismissal of the fraud-related charges came after a full
exposition of the Pharmacy operations, including the actions of the
then-pharmacist-in-charge, to the investigative authorities.

The majority of the compounds filled by the Pharmacy were topical pain creams which were
prescribed as an alternative to potentially addictive opioids. The reimbursement rates paid for
such compounds were not set by the Pharmacy. Rather, they were established in accordance
with industry standards and practices accepted by the Government and its Pharmacy Benefits
Manager.

While the payment of commissions to a marketing professional who is a W-2 employee of a

company is entirely legal and protected by the safe harbors of the federal Anti-Kickback Statute,
paying commissions to a marketing professional who is a 1099 subcontractor for the exact
same marketing efforts is deemed illegal. That said, I have accepted full responsibility for having
paid commissions to an independent contractor and have paid back the Government all of the
monies which the Pharmacy retained from the reimbursements of prescribed medications to
beneficiaries of federal health care programs. According to my attorneys, this type of violation is
typically handled through civil proceedings and, to their knowledge, represents the first instance
of criminal prosecution of its kind.
My decision to accept responsibility and agree to the terms of the plea agreement was
motivated with several considerations in mind:
● First, I believe in taking responsibility for what is considered a violation of a
statute, however technical the violation may be in this instance. While my
attorneys made vigorous arguments to the trial court that the conduct to which
I have pled guilty was a permissible expression of commercial free speech
protected by the 1st Amendment to the Constitution, the trial court disagreed
with my assertion of this right.
● Second, it is important to me and my family to put the uncertainty associated with this
matter behind us.
● Third, in fairness to the employees of Blair Management, LLC and the patients of Blair
Wellness Center, LLC, I want to leave the management and operation of Blair Wellness
untainted by any charges that have been made against me personally as the founder
and prior owner of a medical cannabis business which also has, as a prominent part of
its mission, the provision of alternative, non-addictive treatment of pain.

I now intend to close this very difficult and frustrating chapter that has required a
disproportionate amount of my attention, energy, and personal resources to finally resolve. I am
grateful for the assurance of support from so many friends and colleagues, and, most
especially, for the constant love of my family.