[Federal Register Volume 67, Number 97 (Monday, May 20, 2002)]
[Notices]
[Pages 35586-35587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12494]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


James E. Eaves, M.D.; Revocation of Registration

    On January 4, 2002, the Deputy Assistant Administrator, Office of 
Diversion Control, Drug Enforcement Administration (DEA), issued an 
Order to Show Cause (OTSC) by certified mail to James E. Eaves, M.D., 
notifying him of an opportunity to show cause as to why the DEA should 
not revoke his DEA Certificate of Registration, AE4563967, pursuant to 
21 U.S.C. 824(a)(1) and (a)(4), and deny any pending applications for 
renewal of such registration pursuant to 21 U.S.C. 823(f), on the 
grounds that Dr. Eaves was not authorized by the State of Iowa to 
practice medicine, and his continued registration was inconsistent with 
the public interest. The Order also notified Dr. Eaves that should no 
request for hearing be filed within 30 days, his right to a hearing 
would be deemed waived.
    The OTSC was sent to Dr. Eaves at his DEA registered premises in 
Clarinda, Iowa. A postal delivery receipt was signed January 15, 2002, 
by Dr. Eaves, indicating the OTSC was received. To date, no response 
has been received from Dr. Eaves nor anyone purporting to represent 
him.
    Therefore, the Deputy Administrator, finding that (1) 30 days 
having passed since the receipt of the Order to Show Cause, and (2) no 
request for a hearing having been received, concludes that Dr. Eaves is 
deemed to have waived his right to a hearing. Following a complete 
review of the investigative file in this matter, the Deputy 
Administrator now enters his final order without a hearing pursuant to 
21 CFR 1301.43(d) and (e), and 1301.46.
    The Deputy Administrator finds as follows. Dr. Eaves currently 
possesses DEA Certificate of Registration AE4563967, issued to him in 
Iowa. Pursuant to a Settlement Agreement in May 1999, Dr. Eaves was 
prohibited by the Iowa Board of Medical Examiners (Board) from the 
practice of medicine in Iowa, without the specific permission of the 
Board. The DEA investigative file reveals Dr. Eaves does not currently 
maintain an active medical license in Iowa, and is therefore foreclosed 
from the practice of medicine in the state in which he holds his DEA 
registration.
    In January 2001, however, Dr. Eaves stated to DEA investigators 
that he intended to retain his DEA Certificate of Registration solely 
for the purposes of self-prescribing controlled substances. This 
practice is not permitted by Iowa State law.
    The investigative file further reveals that in October 1988, the 
Board placed Dr. Eaves' medical license on three years' probation, 
based in part on findings that Dr. Eaves authorized excessive amounts 
of controlled substances to be dispensed when such drug therapy was not 
warranted. In May 1991, the Board again placed Dr. Eaves' medical 
license on probation, this time for five years, and further restricted 
his controlled substance privileges, based in part on findings that Dr. 
Eaves continued to authorize excessive amounts of controlled substances 
to be dispensed when such drug therapy was not warranted. In December 
1994, the Board extended this probation period for an additional 32 
months, based on findings that Dr. Eaves had violated his previous 
probation.
    In addition, in June 1998, the Board issued a new Compliant and 
Statement of Charges Against James Edgar Eaves, M.D., Respondent, based 
in part on findings that Dr. Eaves authorized the dispensing of 
excessive amounts of controlled substances when such drug therapy was 
not warranted. This is the action that led to the previously mentioned 
May 1999 Settlement Agreement.
    Pursuant to 21 U.S.C. 824(a)(4), the Deputy Administrator may 
revoke a DEA Certificate of Registration if he determines that granting 
the registration would be inter alia inconsistent with the public 
interest, as determined by section 823. In determining the public 
interest, 823(f) requires that the following factors shall be 
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.

[[Page 35587]]

    (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 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 Henry J. Schwartz, Jr., M.D., 54 FR 16,422 (1989).
    The Deputy Administrator finds factors two, four, and five relevant 
to the instant case.
    Regarding factor two, the applicant's experience in dispensing 
controlled substances, the investigative file reveals that, on at least 
three separate occasions, the Iowa Board of Medical examiners took 
action against Dr. Eaves' medical license for inter alia his 
authorization of excessive amounts of controlled substances to be 
dispensed for lack of a legitimate medical reason. The Board's actions 
culminated in an outright prohibition of Dr. Eaves' practicing medicine 
in Iowa without the express permission of the Board. The Deputy 
Administrator finds Dr. Eaves' documented, actionable willingness to 
authorize the dispensing of excessive amounts of controlled substances 
creates a grave risk of diversion, and furthermore is in violation of 
21 CFR 1306.04, in that in prescribing excessive amounts of controlled 
substances, as documented by the Board, Dr. Eaves was not issuing 
prescriptions for a legitimate medical purpose, nor was he acting in 
the usual course of professional practice.
    Regarding factor four, compliance with applicable State, Federal, 
and local laws relating to controlled substances, the DEA investigation 
revealed that the Iowa Board of Medical Examiners has, on at least 
three separate occasions, taken action against Dr. Eaves' medical 
license, based upon his failure to properly handle controlled 
substances, as set forth above. Dr. Eaves is currently prohibited from 
practicing medicine in the state in which he holds his DEA registration 
without the Board's specific permission.
    Regarding factor five, such other conduct which may threaten the 
public health and safety, two separate letters were sent to Dr. Eaves 
by DEA, requesting that he voluntarily surrender his DEA Certificate of 
Registration due to the above-described circumstances. Dr. Eaves 
refused, stating that he wished to maintain his DEA registration in 
order to self-prescribe. Dr. Eaves failed to respond to a subsequent 
letter from DEA informing him that self-prescribing is a violation of 
section 653 of the Iowa Administrative Code, Chapter 12, Sub Rule 
12.4(19)(a), pursuant to which a physician licenses in Iowa is 
prohibited from self-prescribing or self-dispensing controlled 
substances. The Deputy Administrator finds Dr. Eaves' lack of 
familiarity with applicable state law concerning controlled substances, 
his apparent willingness to ignore that law even when brought to his 
attention, together with his demonstrated past record of lack of 
competence in handling controlled substances, creates an unacceptable 
risk to the public health and safety.
    The investigative file contains a letter dated March 17, 2000, to 
DEA from counsel for Dr. Eaves. The letter contests several of the 
allegations set forth in the Board's Statement of Charges Against James 
Edgar Eaves, M.D., Respondent, dated June 4, 1998. As a matter of 
discretion, the Deputy Administrator has considered the contentions 
raised in the letter, and rejects them. The Deputy Administrator notes 
that Dr. Eaves had the opportunity to contest the charges against him 
before the Board, but chose instead to enter into the May 1999 
Settlement Agreement. That Agreement provided that Dr. Eaves consent to 
be cited for the violations set forth in the Board's Statement of 
Charges, and further provided that Dr. Eaves waived all rights to a 
contested hearing concerning the allegations in the Statement of 
Charges and further waiver any objections to the Settlement Agreement. 
The Deputy Administrator thus finds Dr. Eaves has conceded the 
allegations contained in the Board's Statement of Charges, and he will 
not be permitted to raise objections for the first time here through 
his counsel's anomalous submission.
    Accordingly, the Deputy Administrator of the Drug Enforcement 
Administration, pursuant to the authority vested in him by 21 U.S.C. 
824 and 28 CFR 0.100(b) and 0.104, hereby orders that the DEA 
Certificate of Registration, number AE4563967, previously issued to 
James E. Eaves, M.D., be, and it hereby is, revoked; and furthermore, 
any applications for renewal and/or modification of said Certificate 
be, and hereby are, denied. This order is effective June 19, 2002.

    Dated: May 6, 2002.
John B. Brown, III,
Deputy Administrator.
[FR Doc. 02-12494 Filed 5-17-02; 8:45 am]
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