GARDINER – Allegations that the former Penobscot Indian Nation’s mail-order pharmacy and two of its employees illegally filled more than 180,000 Internet prescriptions for at least $3 million worth of drugs were considered for the first time Tuesday by the state Board of Pharmacy.

Reggie Gracie Jr. and Susan Tringale, both of whom held the title of pharmacist in charge at some point during the operation of the Penobscot Indian Nation’s mail-order pharmacy, could have their licenses to practice suspended or revoked by the board, or the charges could be dismissed.

It’s unclear what penalty PIN Rx may face.

A letter from Neal Pratt, the attorney for PIN Rx as a company, filed a letter with the pharmacy board saying the company would not be participating in the hearing because it no longer is in business.

Since the hearing notice was issued in February, PIN Rx has been sold to an unrelated entity.

“Certainly the state intends to prosecute claims against PIN Rx even though they’re absent,” Assistant Attorney General Andrew Black said Tuesday.

The potential for criminal charges also exists.

When asked by a reporter whether there were any federal charges or an investigation, Gracie’s attorney, Thomas Marjerison, responded “barely.” He did indicate that a representative for the federal Drug Enforcement Agency was attending Tuesday’s hearing. The agent referred questions to the regional office in Boston, but officials there could not be reached.

In his opening remarks Tuesday, Black told the board that this case is about two pharmacists with egos and greed at stake.

“It starts with good intentions, and in the end it becomes a large-scale drug diversion operation that sends controlled substances throughout the United States without valid prescriptions,” Black said.

Controlled substances are legal and illegal drugs whose manufacture, possession and use are regulated by the government because of their potentially addictive qualities, Black explained.

In the case of PIN Rx, legal drugs typically prescribed for weight loss, pain control and psychiatric conditions allegedly were sent through the mail without a valid prescription from a registered prescriber.

When PIN Rx opened in October 2005, state officials said that in addition to providing economic development to the tribe, the no-frills pharmacy would fill MaineCare prescriptions for less cost than would a storefront pharmacy, saving the program for low-income Mainers an estimated $5 million each year.

Evidence presented by the state Tuesday showed that when business at PIN Rx started to go bad – the company allegedly was losing more than $100,000 a month – company officials, mainly Gracie, looked for alternatives to boost revenue.

A decision was made to begin working with various Internet prescription-ordering centers.

Through them, PIN Rx filled and dispensed more than 180,000 prescriptions for controlled substances in response to orders that PIN Rx downloaded from Web sites operated by the centers, Black said.

PIN Rx allegedly received neither a written prescription nor contacted the prescriber to verify the orders, many of which were generated in Puerto Rico.

Despite warnings from a private consulting firm and discussions about the legitimacy of the business among PIN Rx officials, the business continued.

“The evidence will show that Tringale, Gracie, and the [PIN Rx] board knew what they were doing was illegal and they still forged ahead with this enterprise,” Black said.

He alleges that Gracie did it for money – more than $100,000 over a six-month period in addition to his $130,000 salary.

Tringale did it because it was easier to go along; even though she stepped down as pharmacist in charge it was better not to “rock the boat,” Black said.

And Mark Chavaree, PIN Rx president and legal counsel to the tribe, continued because of “an ego and refusal to admit failure, to admit a mistake and accept blame,” Black said.

Testimony is scheduled to continue at 8:15 a.m. today at the Maine Office of Licensing and Registration.

Both sides have lengthy witness lists, and the hearing potentially could spill into a third day scheduled for later this month. Gracie and Tringale both are expected to testify at some point during the proceeding.