[Federal Register Volume 67, Number 43 (Tuesday, March 5, 2002)]
[Notices]
[Pages 9995-9997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5220]
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DEPARTMENT OF JUSTICE
Drug Enforcement Administration
Transtar Distributors, Inc.; Revocation of Registration
On July 29, 2000, the Administrator of the Drug Enforcement
Administration (DEA), issued an Order to Show Cause (OTSC) by certified
mail to Transtar Distributors, Inc. (Transtar), located in Orlando,
Florida, notifying it of a preliminary finding that, pursuant to
evidence set forth therein, it was responsible for the diversion of
large quantities of List I chemicals into other than legitimate
channels. Based on these preliminary findings, and pursuant to 21
U.S.C. 824(d) and 28 CFR 0.100 and 0.104, the OTSC suspended Transtar's
DEA Certificate of Registration, effective immediately, with such
suspension to remain in effect until a final determination is reached
in these proceedings. The OTSC informed Transtar and its owner/
president, Nabil Maswadeh (Maswadeh) of an opportunity to request a
hearing to show cause as to why the DEA should not revoke its DEA
Certificate of Registration, 004662TIY, and deny any pending
applications for renewal or modification of such registration, for
reason that such registration is inconsistent with the public interest,
as determined by 21 U.S.C. 823(h). The OTSC also notified Transtar
that, should no request for hearing be filed within 30 days, its right
to a hearing would be considered waived.
On August 16, 2000, the OTSC was returned to DEA, marked ``Return
To Sender--Unclaimed.'' No request for a hearing or any other response
was received by DEA from Transtar or Maswadeh nor anyone purporting to
represent the registrant in this matter. Therefore, the Administrator
of the DEA, finding that (1) thirty days having passed since receipt of
the Order to Show Cause, and (2) no request for a hearing having been
received, concludes Transtar is deemed to have waived its right to a
hearing. After considering relevant material from the investigative
file in this matter, the Administrator now enters his final order
without a hearing pursuant to 21 CFR 1301.43 (d) and (e) and 1301.46.
The Administrator finds as follows. List I chemicals are chemicals
that may be used in the manufacture of a controlled substance in
violation of the Controlled Substances Act. 21 U.S.C. 802(34); 21 CFR
1310.02(a). Pseudoephedrine is a List I chemical that is commonly used
to illegally manufacture methamphetamine, a Schedule II controlled
substance. Methamphetamine is an extremely potent central nervous
system stimulant, and its abuse is a growing problem in the United
States.
A ``regulated person'' is a person who manufactures, distributes,
imports, or exports inter alia a listed chemical. 21 U.S.C. 802(38). A
``regulated transaction'' is inter alia a distribution, receipt, sale,
importation, or exportation of a threshold amount of a listed chemical.
21 U.S.C. 802(39). The Administrator finds all parties mentioned herein
to be regulated, and all transactions mentioned herein to be regulated
transactions, unless otherwise noted.
The DEA investigation shows that at the time of Transtar's pre-
registration investigation on December 17, 1999, Maswadeh was
personally served with the DEA notices informing him that ephedrine and
pseudoephedrine are diverted for use in clandestine methamphetamine
laboratories, as well as the notice of informing him that possession or
distribution of a listed chemical knowing or having reasonable cause to
believe that the listed chemical will be used to manufacture a
controlled substance is a violation of the Controlled Substances Act.
The DEA investigation shows that by March, 2000, Transtar was
amassing a large quantity of pseudoephedrine. On March 20, 2000, DEA
investigators observed 19 large boxes containing approximately 100
cases of pseudoephedrine being delivered to Transtar. The shipment was
received by a business associate of Maswadeh, who used a fictitious
name when signing for the shipment. Maswadeh was present when this
shipment was received.
Between March 20 and March 24, 2000, DEA investigators observed
Maswadeh and his associate remove numerous large cardboard boxes from
Transtar and place them into a storage unit. On March 24, 2000, DEA
investigators observed Maswadeh ship three large boxes to California. A
subsequent search of the boxes revealed approximately 3,036 bottles of
pseudoephedrine, each bottle containing 120 tablets, for a total of
364,320 dosage units. The manufacturer's lot numbers and expiration
dates had been scraped off of the bottles. The shipping label bore
fictitious names for both the shipper and receiver, and also bore a
fictitious address for the shipper.
During this same time period, DEA investigators on several
occasions observed Maswadeh and his associate place items in a dumpster
located near Transtar. A search of the dumpster revealed 24 large
cardboard boxes bearing inscriptions indicating that the boxes had
contained pseudoephedrine. A subsequent search of the dumpster revealed
numerous labels containing lot numbers that had been scraped off
pseudoephedrine bottles. Additional items recovered from the dumpster
included: receipts and shipping documents indicating Transtar was
receiving large amounts of pseudoephedrine from numerous suppliers;
five sealed bottles of ephedrine with their lot numbers and expiration
dates removed; and a Federal Express Airbill indicating that a 90 pound
shipment was sent to California on March 3, 2000. The Airbill showed
address information consistent with the California address to which
Maswadeh had sent shipments of pseudoephedrine. The Airbill bore a
fictitious name and address for the shipper.
On March 25 and 26, 2000, DEA investigators observed Maswadeh
removing boxes of pseudoephedrine from the above-referenced storage
unit. Also during this time, Maswadeh was observed placing items into a
common
[[Page 9996]]
dumpster in his residential community. These items included the
following: shipping documents and labels indicating Transtar received
pseudoephedrine shipments from several manufacturers, and also hundreds
of lot numbers that had been scraped off of pseudoephedrine bottles.
On April 19, 2000, DEA received information that Transtar was
attempting to place an order with a pharmaceutical manufacturer in New
York for 300,000 bottles of pseudoephedrine per month.
On June 1, 2000, DEA Confidential Source information revealed
Maswadeh was willing to sell 240 cases of pseudoephedrine for the
purpose of illegally manufacturing methamphetamine.
On June 7, 2000, a search warrant was served upon the above-
referenced storage unit. DEA investigators seized approximately 240
cases of pseudoephedrine tablets. Some of the pseudoephedrine was still
in bottles, and some was loose in plastic bags.
On June 10, 2000, Maswadeh met with an undercover DEA agent and
agreed to transport the 240 cases of pseudoephedrine in a rented van.
Confidential Source information acquired by DEA indicates Maswadeh
and his associates were selling pseudoephedrine to individuals on the
West Coast knowing that the chemical was to be used in the illicit
manufacture of methamphetamine.
Therefore, pursuant to 21 U.S.C. 824(d), the Administrator of the
DEA issued an immediate suspension of Transtar's DEA Certificate of
Registration. While the above-cited evidence provides ample grounds for
an immediate suspension pursuant to Sec. 824(d), these grounds also
provide the basis for the revocation of Transtar's DEA Certificate of
Registration.
Pursuant to 21 U.S.C. 824(a), the Administrator may revoke a
registration to distribute List I chemicals upon a finding that the
registrant has committed such acts as would render his registration
under section 823 inconsistent with the public interest as determined
under that section. Pursuant to 21 U.S.C. 823(h), the following factors
are considered in determining the public interest:
(1) Maintenance of effective controls against diversion of listed
chemicals into other than legitimate channels;
(2) Compliance with applicable Federal, State, and local law;
(3) Any prior conviction record under Federal or State laws
relating to controlled substances or to chemicals controlled under
Federal or State law;
(4) Any past experience in the manufacture and distribution of
chemicals; and
(5) Such other factors as are relevant to and consistent with the
public health and safety.
Like the public interest analysis for practitioners and pharmacies
pursuant to subsection (f) of section 823, these factors are to be
considered in the disjunctive; the Administrator may rely on any one or
combination of factors and may give each factor the weight he deems
appropriate in determining whether a registration should be revoked or
an application for registration be denied See, e.g. Energy Outlet, 64
FR 14,269 (1999). See also Henry J. Schwartz, Jr., MD., 54 FR 16,422
(1989).
Regarding the first factor, maintenance of effective controls
against diversion, the Administrator finds substantial evidence in the
investigative file that Transtar and Maswadeh actively participated in
the illegal diversion of pseudoephedrine knowing it would be used to
manufacture methamphetamine.
Regarding the second floor, compliance with applicable Federal,
State, and local law, the investigative file in this matter reveals
substantial evidence indicating that Transtar and Maswadeh
significantly violated applicable law. In shipping substantial
quantities of pseudoephedrine using fictitious names and addresses and
in removing or otherwise destroying labels and lot numbers, Maswadeh
clearly was attempting to conceal his activities from law enforcement.
In addition, Confidential Source information showed that Maswadeh was
willing to sell 240 cases of pseudoephedrine for the stated purpose of
illicit manufacture of methamphetamine, and even stated to a DEA
undercover agent that he was willing to deliver the 240 cases of
chemicals in a rented van he would provide. The Administrator finds
these facts support the following violations of applicable law:
Transtar and Maswadeh violated 21 U.S.C. 841(d)(1) (possession of a
listed chemical with intent to manufacture a controlled substance);
841(d)(2) (possession/distribution of a listed chemical knowing or
having reasonable cause to believe that the listed chemical will be
used to manufacture a controlled substance); 841(g)(1) (knowing
distribution of a listed chemical in violation of the Controlled
Substances Act); 841(g)(2) (possession of a listed chemical with
knowledge that recordkeeping or reporting requirements not adhered to);
842(a)(5) and (10) (failure to keep required records); and 830(b)(1)(a)
(failure to report any regulated transaction involving an extraordinary
quantity of a listed chemical, an uncommon method of payment or
delivery, or any other circumstance the regulated person believes may
indicate that the listed chemical will be used in violation of this
subchapter). (Note: subparagraphs (d) and (g) of 841 have been
redesignated as (c) and (f)).
Regarding the third factor, any prior conviction record under
Federal or State laws relating to controlled substances or chemicals,
there is no evidence in the investigative file that Transtar or
Maswadeh has any record of convictions under Federal or State laws
relating to controlled substances or chemicals.
Regarding the fourth factor, past experience in the manufacture and
distribution of chemicals, the Administrator finds substantial evidence
in the investigative file that Maswadeh actively participated in the
illegal trafficking of pseudoephedrine, knowing that it was being
diverted to the manufacture of methamphetamine, as set forth in factor
two, above.
Regarding the fifth factor, such other factors relevant to and
consistent with the public safety, the Administrator finds substantial
evidence that Transtar and Maswadeh significantly violated applicable
law by illegally trafficking substantial quantities of pseudoephedrine
knowing it was being diverted to the manufacture of methamphetamine and
further by failing to keep and maintain required records and failure to
report suspicious listed chemical transactions.
Accordingly, the Administrator of the Drug Enforcement
Administration, pursuant to the authority vested in him by 21 U.S.C.
823 and 824 and 28 CFR 0.100(b) and 0.104, hereby orders that DEA
Certificate of Registration 004662TTY, previously issued to Transtar
Distributors, Inc., be, and it hereby is, revoked; and any pending
applications for renewal or modification of said registration be, and
hereby are, denied. This order is effective April 4, 2002.
Dated: February 22, 2002.
Asa Hutchinson,
Administrator.
Certificate of Service
This is to certify that the undersigned, on February 25, 2002,
placed a copy of the Final Order referenced in the enclosed letter in
the interoffice mail addressed to Linden Barber, Esq., Office of Chief
Counsel, Drug Enforcement Administration, Washington, DC 20537; and
caused a copy to be mailed, postage
[[Page 9997]]
prepaid, registered return receipt to Mr. Nabil Maswadeh, Transtar
Distributors, Inc., 6130 Edgewater Drive, Unit D, Orlando, Florida
32810.
Karen C. Grant.
[FR Doc. 02-5220 Filed 3-4-02; 8:45 am]
BILLING CODE 4410-09-M