May 3—MOREHEAD — Former Carter County Superintendent Ronnie Dotson and son Jacob Dotson faced a civil suit filed in December 2022 out of Boyd County, alleging their pharmaceutical practices were fraudulent. A separate civil suit was filed in late March alleging similar complaints, this time out of Rowan County.

In the initial suit, which has since been resolved out of court, the Dotsons were sued after their part ownership in Cornerstone Care Associates, PLLC, revealed "fraudulent acts, breach of fiduciary duties, embezzlement and mismanagement of a mutually owned pharmacy corporation."

According to court documents, Jacob also launched part ownership in CIA Drug, LLC. Jacob Dotson and his wife, Megan, now face suit against the other partners of that company.

The plaintiffs, listed as CIA Drug, Jennifer and Joe Anderson, state each party in the suit owns 25% of CIA Drug — operating in the name of Holbrook Drugs. Megan and Jacob Dotson joined partnership in December 2019 and agreed each would work full time at the drug store, conducting managing and operational duties of the "corporation," in exchange for salary, according to court records.

The suit alleges since obtaining part ownership in 2019, Jacob "worked 171 days in 2020, 30 days in 2021, 10 days in 2022 and 0 days in 2023," yet collected full-time salary and accessed corporate funds after moving to Hilton Head, South Carolina.

Since 2020, the plaintiffs allege Jacob and Megan utilized more than $600,000 in corporate funds and assets "without permission," or other members' approval — preventing the Andersons from receiving "equal distribution."

Among the $600,000 in arbitrary spendings included more than $115,000 in salaries, an $11,965 condo payment and the purchase of a $43,893 Range Rover.

Meanwhile, the plaintiffs received only $55,583 during the same duration.

The suit continues in stating the Dotsons failed to "perform any type of management of the corporation to ensure that the corporation is profitable," and "this action ... since becoming shareholders were done fraudulently ... or was the result of gross negligence."

A notice for the return of assets was served in February 2023 to which Jacob said he "would return a minuscule amount of the assets, but does not intend to return all corporate assets," the suit reads.

Under the claim for conversion, the plaintiffs further allege Dotson received employee benefits after his move to South Carolina — when he was no longer working as an employee of Holbrook Drugs.

Dotson is alleged to have also breached fiduciary duty by opening another pharmacy (Cornerstone Care Associates, PLLC) after joining CIA Drug, LLC, under the guise he would serve as a full-time pharmacist and manager.

In Count 3 of the civil suit alleging negligent and fraudulent misrepresentation, Dotson "hire(d) employees away from the plaintiff for the benefit of another corporation he was a shareholder of."

In the secondary suit out of Boyd County, both Ronnie and Jacob Dotson were accused of purchasing controlled substances under one pharmacy's name to sell at another, according to previous reports.

Jacob founded Cornerstone Care Associates, PLLC, along with his father six months following his partnership with CIA Drug in which he is alleged to have hired CIA Drug employees to work at Cornerstone Care.

The Andersons are requesting loss of profits from 2021, 2022, 2023 and other compensatory damages, disassociation from the defendants, and equalized distributions of corporate funds and assets.

On March 29, a restraining order was entered against Jacob and Megan Dotson, preventing them from accessing corporate records, bank accounts and funds.

The motion for the restraining order reiterated Jacob "does not intend to return the $600,000-plus of corporate assets he took without a majority of the members' approval."

(606) 326-2652 — mjepling@dailyindependent.com