4/15/05 - A Danville woman pleaded guilty to prescription drug fraud Thursday and will testify against a Danville doctor accused of helping her obtain the drugs as part of her plea bargain.

Judy Wallace, 42, will serve 45 days in jail as part of a diversion program after pleading guilty to four counts of obtaining a controlled substance by fraud. The remainder of her three-year sentence will be probated for five years provided she performs 40 hours of community service, is employed, and stays drug and alcohol free.

Wallace also will testify against her former employer, osteopathic internist Dr. Todd Lackney, who was indicted along with Wallace and another former employee, Joannie Smith, on four counts of obtaining prescription drugs by fraud. According the indictments, which were handed down in October, Lackney helped the two women get Lortab and Tussionex, both of which contain the narcotic hydrocodone.

"Of course, the biggest part of the deal is that she has agreed to testify against Dr. Lackney," said Commonwealth's Attorney Richard Bottoms.

Boyle Circuit Judge Darren Peckler has yet to approve the deal.

Final sentencing is set for May 31.

Smith, 43, is also scheduled to enter a guilty plea on May 5, according to court records. If that deal goes through, Smith will receive a plea arrangement similar to Wallace's and will also testify against Lackney, Bottoms said.

Lackney, whose office is at 321 S. Third St., has pleaded not guilty to the charges and is next scheduled in court on May 31 for a status hearing.

"We have no kind of agreement with Dr. Lackney," Bottoms said.

Lackney also has been investigated by the state Board of Medical Licensure and may face disciplinary action at the board's May 19 meeting, said Chad Elder, assistant general counsel for the board. If the board decides to file a complaint against Lackney, he could face sanctions ranging from fines to suspension of his license to having his license to practice medicine in Kentucky revoked, Elder said.