[Federal Register Volume 67, Number 44 (Wednesday, March 6, 2002)]
[Notices]
[Pages 10231-10232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5244]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Hologram Wonders, Inc.; Denial of Application

    On or about July 27, 2000, the Deputy Assistant Administrator, 
Office of Diversion Control, Drug Enforcement Administration (DEA), 
issued an Order to Show Cause (OTSC) by certified mail to Hologram 
Wonders, Inc., d/b/a New Horizon Dist. (Hologram), located in 
Kissimmee, Florida, notifying it's owner/president Hani Solomon 
(Solomon) of an opportunity to show cause as to why the DEA should not 
deny its application, dated January 17, 1999, for a DEA Certificate of 
Registration as a distributor of the List I chemicals ephedrine, 
pseudoephedrine, and phenylpropanolamine, pursuant to 21

[[Page 10232]]

U.S.C. 823(h), as being inconsistent with the public interest. The 
order also notified Hologram that, should no request for hearing be 
filed within 30 days, the right to a hearing would be waived.
    No return postal receipt was received for the OTSC sent by 
certified mail. On August 2, 2000, DEA investigators from the Orlando, 
Florida District Office traveled to Hologram's business premises and, 
when there was no answer to repeated knocking, affixed a copy of the 
OTSC to the front door. Since that time, no further response has been 
received from the applicant nor any person purporting to represent the 
applicant. 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 that 
Hologram 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, ephedrine, and phenylpropanolamine are 
List I chemicals that are 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.
    The Administrator finds that on or about January 17, 1999, an 
application was received by the DEA Chemical Operations Registration 
section on behalf of Hologram for DEA registration as a distributor of 
the three above-mentioned List I chemicals.
    The DEA investigation revealed a number of Hologram's proposed 
customers and suppliers were currently being investigated by DEA for 
violations related to the distribution of List I chemicals; and further 
that a former business partner of Solomon's, with whom he maintained 
close business ties, was under investigation for violations of law 
related to the distribution of List I chemicals.
    The investigation further revealed that although Hologram and 
Solomon had no experience in distributing List I chemical products, 
Solomon expected this to constitute 25% of his business.
    Pursuant to 21 U.S.C. 823(h), the Administrator may deny an 
application for a DEA Certificate of Registration if he determines that 
granting the registration would be inconsistent with the public 
interest. Section 823(h) requires the following factors be considered:
    (1) Maintenance by the applicant of effective controls against 
diversion of listed chemicals into other than legitimate channels;
    (2) Compliance by the applicant with applicable Federal, State, and 
local law;
    (3) Any prior conviction record of the applicant under Federal or 
State laws relating to controlled substances or to chemicals controlled 
under Federal or State law;
    (4) Any past experience of the applicant 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., M.D., 54 FR 16,422 
(1989).
    The Administrator finds factors four and five relevant to this 
application.
    Regarding factor four, the applicant's past experience in the 
distribution of chemicals, the DEA investigation revealed that the 
applicant has no previous experience related to distributing listed 
chemicals, except at the retail level.
    Regarding factor five, other factors relevant to and consistent 
with the public safety, the Administrator finds that, while Hologram 
and Solomon have no previous experience in distributing List I chemical 
products, Solomon expected these products to account for 25% of 
Hologram's business.
    In addition, Hologram provided a proposed customer list that 
contained a substantial number of firms that were already being 
supplied by one of four distributors, and each of the named 
distributors currently had an OTSC pending. The customers shared by 
these firms and Hologram were requesting Solomon to supply them List I 
chemical products. The DEA investigation revealed substantial evidence 
that a number of business associates of Solomon are List I chemical 
distributors involved in an organization that trafficks illegal 
pseudoephedrine supplying clandestine methamphetamine laboratories in 
California. Hologram's proposed customer list indicates it will be 
supplying the same illicit market as these business associates. Solomon 
has failed to demonstrate either a legitimate supplier or a legitimate 
customer base for List I chemical products. Granting Hologram's 
application would be tantamount to adding another List I chemical 
distributor supplying the illicit market.
    Therefore, for the above-stated reasons, the Administrator 
concludes that it would be inconsistent with the public interest to 
grant the application of Hologram.
    Accordingly, the 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 a DEA Certificate of Registration submitted by Hologram Wonders, 
Inc. be denied. This order is effective April 5, 2002.

    Dated: February 22, 2002.
Asa Hutchinson,
Administrator.
[FR Doc. 02-5244 Filed 3-5-02; 8:45 am]
BILLING CODE 4410-09-M