A Kentucky company used court-ordered urine tests to defraud Medicare, Secretary of State Blinken addresses synthetic drugs at a UN side event, and more.

[image:1 align:right caption:true]Marijuana Policy

SAFE Banking Act Negotiations Find "Sweet Spot," Senator Says. Senate Banking Committee member Sen. Kevin Cramer (R-ND) says senators have "probably found a sweet spot" in negotiations over the SAFE Banking Act (S.1323), which is set to have a committee vote, likely next week. Senators have reached an agreement to leave a key section favored by Republicans "intact, as it is," Cramer said.

That section deals with broad banking regulations, and Republicans have insisted that it remain in the bill.

Committee member Sen. Jack Reed (D-NV) had previously expressed concerns about the section—Section 10—but now says senators have "talked extensively about Section 10, and we’ve made some progress." However, he didn’t specify what that progress looks like. "I think we’ve resolved most of the issues we had—and I hope we have so we can get it out of the committee with a strong vote," he said.

Drug Policy

San Francisco Drug Crackdown Has Sparked Violent Turf Warfare in Center of City, Supervisor Says. Mayor London Breed's crackdown on drugs in the Tenderloin and South of Market (Soma) neighborhoods has resulted in hundreds of arrests and the seizure of hundreds of pounds of fentanyl, but is also generating violence in those neighborhoods, one city supervisor says.

"They’re poking a hornet’s nest," Supervisor Dan Preston said in an interview. "There are increased turf wars that are occurring because you have a raid here, and another group moves in. I mean, we’ve had gunfire and a murder during the middle of the day." 

Preston cited two shootings three days apart on Golden Gate Avenue, with the second shooting leaving one person dead.

Meanwhile, street-level drug activity remains undeterred, with overdose deaths on pace to exceed the number from last year.

Tenderloin resident and Public Defender's Office attorney Alexandra Pray said she would rather see more patrols than more arrests.

"I walk to work every day, and I walked through just groups of young men huddled around, and I know what they’re doing," Pray said. "And I just don’t know where the police are. It feels like the police are allowing this to happen, and then when they feel like it, they swoop in and pick people up, and we’re not really solving the problem."

Drug Testing

Kentucky Lab Owner, Exec Plead Guilty to $2.8M Lab Fraud Scheme That Billed Medicare for Non-Medical, Court Ordered Drug Testing. The owner

 and CEO of a Lexington, Kentucky-based lab and the lab's compliance officer have pleaded guilty to a $2.8 million healthcare fraud scheme in which they billed Medicare for court-ordered urine drug tests even though Medicare only pays for medical testing.

LabTox owner Ronald Coburn and LabTox compliance officer and director of operations Erica Baker copped the guilty pleas. Baker helped solicit urine test drug orders submitted by the company. The pair worked with a company Baker recruited, Blue Waters Assessment and Testing Services to refer court-ordered drug tests to LabTox. Despite being aware this was not medical testing, Coburn billed Medicare and Kentucky Medicaid, gaining payments of $1.9 million between June 2019 and March 2021.

Baker also sought out samples from nonmedical substance abuse treatment programs, putting some facility staff on the lab's payroll and compensating them based on the number of urine drug tests sent to the lab. LabTox billed Medicaid and Kentucky Medicare $937,594 for this testing.

Coburn has agreed to pay $3.6 million to the IRS, representing income tax he owed in 2017 through 2021. The pair will be sentenced in December and are looking at up to 10 years in federal prison.

Foreign Policy

US Secretary of State Addresses Global Synthetic Drug Threats at U.S.-Hosted Side Event at 78th United Nations General Assembly. On Monday, September 18, Secretary of State Antony J. Blinken hosted an event on the margins of the 78th United Nations General Assembly addressing the pressing issue of synthetic drug challenges worldwide.  The U.S.-sponsored side event, titled "Addressing the Public Health and Security Threats of Synthetic Drugs Through Global Cooperation," convened international leaders and representatives from international organizations, private sector, and civil society to discuss comprehensive strategies for combatting the public health and security threats posed by synthetic drugs and advance the work of the Global Coalition to Address Synthetic Drug Threats.

As synthetic drugs continue to devastate communities at home and abroad, this discussion underscores the United States’ commitment to engaging with international partners to address this critical issue, including the provision of more than $100 million in assistance from the Department of State to build the capacity of partners across the world to detect, identify, and interdict synthetic drugs.  This assistance also includes providing vital treatment, prevention, and recovery initiatives, as well as supporting alternatives to incarceration systems development with a focus on drug treatment.?

The Global Coalition provides a platform for the exchange of knowledge, ideas, and collaborative efforts aimed at dismantling the criminal networks responsible for the production and distribution of synthetic drugs and sharing universal best practices for substance use harm reduction and will continue expert-level engagement through monthly meetings launching in October.