the doctor's office I worked in and a local pharmacy that did the compounding got into trouble with the board of pharmacy for two practices -- both of which seem pretty innocuous.
1) The doctor stocked a compounded form of an anti-nausea drug which allowed to to be applied to the skin rather than oral or mucosal (suppository) absorption. She would give the drug to the patient and the patient was billed by the pharmacy in question. Insurance was never involved, as the pharmacy charged something like $10 for it. The board called this distribution and eventually the patients went back to needing suppositories or pills.
2) The doctor used a blistering agent for treatment of certain skin conditions -- it was dangerous to be handled by someone untrained, and to have at home / elsewhere. She applied it directly to the patient, and the agent isn't available mixed commercially. The pharmacy board wanted a new bottle created for every patient, but eventually backed down (a bottle would typically get thrown out yearly just "cause", but would still be 3/4 full after multiple treatments).