[Federal Register Volume 63, Number 164 (Tuesday, August 25, 1998)]
[Notices]
[Pages 45258-45259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22686]
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DEPARTMENT OF JUSTICE
Drug Enforcement Administration
Gary C. Hassmann, M.D.; Denial of Application
On January 13, 1998, the Deputy Assistant Administrator, Office of
Diversion Control, Drug Enforcement Administration (DEA), issued an
Order to Show Cause to Gary C. Hassmann, M.D. of Tulsa, Oklahoma,
notifying him of an opportunity to show cause as to why DEA should not
deny his application for registration as a practitioner under 21 U.S.C.
823(f), for reason that such registration would be inconsistent with
the public interest. Specifically, the Order to Show Cause alleged
that:
1. Between February 1987 and August 1987, [Dr. Hassmann] met
with DEA undercover agents on at least five occasions for the
purpose of investing in a cocaine smuggling operation. During that
period, [Dr. Hassmann] supplied the agents with $99,200.00 to
finance the purchase of approximately fourteen kilograms of cocaine
for distribution in the United States.
2. On February 19, 1988, in the United States District Court,
Western District of Texas, [Dr. Hassmann] pled guilty to one felony
count of traveling in interstate and foreign commerce for the
purpose of distributing the proceeds of an unlawful activity. [Dr.
Hassmann was] sentenced to five years imprisonment.
3. As a result of [his] conviction, on September 24, 1998, the
Texas State Board of Medical Examiners revoked [his] license to
practice medicine in that state. Effective February 1, 1991, the
Oklahoma State Board of Medical Licensure and Supervision placed
[his] state license to practice medicine on probation for a period
of five years. In addition, on March 18, 1991, the New Jersey State
Board of Medical Examiners revoked [his] license to practice
medicine in that state.
4. [Dr. Hassmann] materially falsified [his] December 23, 1995,
application for [a] DEA Certificate of Registration by failing to
indicate the revocation of [his] licenses to practice medicine in
Texas and New Jersey and the imposition of probation on [his]
Oklahoma medical license.
5. On [his] December 23, 1995, application for [a] DEA
Certificate of Registration, [Dr. Hassmann] applied for controlled
substance authority in Schedules II through V. Subsequently, [he]
entered into a written stipulation with the Oklahoma Bureau of
Narcotics and Dangerous Drugs Control, effective September 1, 1996,
in which it was agreed that [he] would be granted a limited
narcotics registration on a probationary status for a period of five
years. It was further agreed that during the five-year probationary
period, [his] state narcotic registration would be limited to
controlled substance authority in Schedules III, IV and V.
Therefore, [Dr. Hassmann is] currently without authorization to
handle Schedule II controlled substances in the State of Oklahoma.
21 U.S.C. 824(a)(3).
The order also notified Dr. Hassmann that should no request for a
hearing be filed within 30 days, his hearing right would be deemed
waived. The DEA received a signed receipt indicating that Dr. Hassmann
received the order on February 4, 1998. No request for a hearing or any
other reply was received by the DEA from Dr. Hassmann or anyone
purporting to represent him in this matter. Therefore, the Acting
Deputy Administrator, finding that (1) 30 days have passed since the
receipt of the Order to Show Cause, and (2) no request for a hearing
having been received, concludes that Dr. Hassmann is deemed to have
waived his hearing right. After considering material from the
investigative file in this matter, the Acting Deputy Administrator now
enters his final order without a hearing pursuant to 21 CFR 1301.43 (d)
and (e) and 1301.46.
The Acting Deputy Administrator finds that between February and
August 1987, Dr. Hassmann met on at least five occasions with
undercover DEA agents for the purpose of investing in a cocaine
smuggling operation. Dr. Hassmann supplied the undercover agents with
$99,200.00 to finance the purchase of approximately 14 kilograms of
cocaine for distribution in the United States. Dr. Hassmann indicated
that he intended to take the profits from the sale of the cocaine and
reinvest the money in the purchase of an additional 40 kilograms. On
August 11, 1987, Dr. Hassmann was arrested and charged with attempted
possession with intent to distribute cocaine in violation of 21 U.S.C.
841(a)(1).
Ultimately, Dr. Hassmann was charged in a one count information in
the United States District Court for the Western District of Texas with
the use of interstate facilities to commit a crime in violation of 18
U.S.C. 1952(a)(1). The information charged that Dr. Hassmann traveled
in interstate and foreign commerce with money from the Bahamas to the
United States and distributed the money with intent to facilitate the
attempted purchase and possession for distribution of a quantity of
cocaine. Pursuant to a plea agreement filed on February 19, 1998, Dr.
Hassmann pled guilty to the information and agreed to surrender his DEA
and state controlled substance privileges. On March 24, 1998, Dr.
Hassmann was sentenced to five years imprisonment and fined $25,000.00.
On September 24, 1988, the Texas State Board of Medical Examiners
revoked Dr. Hassmann's license to practice medicine in that state based
upon his conviction and his failure to practice medicine in an
acceptable
[[Page 45259]]
manner. Therefore, the New Jersey Board of Medical Examiners revoked
Dr. Hassmann's license to practice medicine in New Jersey on March 18,
1991, based upon his conviction and the revocation of his Texas medical
license.
On February 21, 1991, the Oklahoma Medical Board granted Dr.
Hassmann a probationary license to practice medicine in that state
subject to various conditions for five years, one of which was to
refrain from alcohol and drug consumption. In 1994, upon Dr. Hassmann's
request, the term regarding abstinence from alcohol was lifted. One
month later, he was arrested and charged with first degree residential
burglary and driving under the influence of alcohol. Dr. Hassmann pled
guilty to the charges and received a one year deferred sentence. On
September 6, 1996, the Oklahoma State Bureau of Narcotics and Dangerous
Drugs Control granted Dr. Hassmann a limited license to handle
controlled substances in Schedules III through V only, and placed him
on probation until September 2001.
On March 23, 1995, Dr. Hassmann submitted an application for
registration with DEA. On the application, Dr. Hassmann answered ``No''
to a question (hereinafter referred to as the liability question) which
asks whether ``the applicant ever had a State professional license or
controlled substance registration revoked, suspended, denied,
restricted or placed on probation?'' Dr. Hassmann provided this
response despite the revocation of his medical licenses in Texas and
New Jersey in 1988 and 1991 respectively, and the granting of a
probationary medical license in Oklahoma in 1991.
Pursuant to 21 U.S.C. 823(f), the Deputy Administrator may deny an
application for a DEA Certificate of Registration if he determines that
such registration would be inconsistent with the public interest. In
determining the public interest, the following factors are considered:
(1) The recommendation of the appropriate State licensing board
or professional disciplinary authority.
(2) The applicant's experience in dispensing, or conducting
research with respect to controlled substances.
(3) The applicant's conviction record under Federal or State
laws relating to the manufacture, distribution, or dispensing of
controlled substances.
(4) Compliance with applicable State, Federal, or local laws
relating to controlled substances.
(5) Such other conduct which may threaten the public health and
safety.
These factors are to be considered in the disjunctive; the Deputy
Administrator may rely on any one or a combination of factors and may
given each factor the weight he deems appropriate in determining
whether a registration should be revoked or an application for
registration be denied. See Henry J. Schwarz, Jr., M.D., 54 FR 16,422
(1989).
Regarding factor one, Dr. Hassmann's state medical licenses in
Texas and New Jersey have been revoked. He is now applying for DEA
registration in Oklahoma. While he is currently authorized to practice
medicine and handle Schedule III through V controlled substances in
Oklahoma, such authorization is not dispositive of whether he should be
issued a DEA registration in that state. The recommendation of the
state licensing authority is only one of the factors to be considered
in determining the public interest.
As to factor two, there is no evidence before the Acting Deputy
Administrator regarding Dr. Hassmann's experience in dispensing or
conducting research with controlled substances.
Regarding factor three, Dr. Hassmann was ultimately convicted of
the use of interstate facilities to commit a crime, however this
conviction related to the unlawful distribution of cocaine.
As to Dr. Hassmann's compliance with controlled substance laws, it
is undisputed that he participated in a scheme to illegally distribute
large quantities of cocaine in violation of 21 U.S.C. 841(a)(1). In
addition, under 21 U.S.C. 843(a)(4)(A), it is ``unlawful for any person
knowingly or intentionally--to furnish false or fraudulent material
information in, or omit any material information from, any application,
report, record, or other document required to be made, kept, or filed
under this subchapter of subchapter II of this chapter.'' Answers to
the liability questions on applications for registration are material,
since DEA relies upon such answers to determine whether an
investigation is needed prior to granting the application. See Ezzat E.
Majd Pour, M.D., 55 FR 47,547 (1990). The Acting Deputy Administrator
concludes that Dr. Hassmann materially falsified his application for
registration by answering ``No'' to the question which asks in part
whether he had even had a state license revoked or placed on probation,
when his licenses in Texas and New Jersey were revoked, and his
Oklahoma license was placed on probation.
Based upon the above, the Acting Deputy Administrator concludes
that Dr. Hassmann's registration with DEA would be inconsistent with
the public interest. Accordingly, the Acting Deputy Administrator of
the Drug Enforcement Administration, pursuant to the authority vested
in him by 21 U.S.C. 823 and 28 CFR 0.100(b) and 0.104, hereby orders
that the application for registration, executed by Gary C. Hassmann,
M.D., be, and it hereby is, denied. This order is effective September
24, 1998.
Dated: August 14, 1998.
Donnie R. Marshall,
Acting Deputy Administrator.
[FR Doc. 98-22686 Filed 8-24-98; 8:45 am]
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