[Federal Register Volume 67, Number 218 (Tuesday, November 12, 2002)]
[Notices]
[Pages 68689-68690]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28660]



[[Page 68689]]

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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Fredesminda Yabut-Baluyut, M.D. Revocation of Registration

    On February 25, 2002, the Deputy Assistant Administrator, Office of 
Diversion Control, Drug Enforcement Administration (DEA), issued an 
Order to Show Cause to Fredesminda Yabut-Baluyut, M.D. (Dr. Yabut-
Baluyut) of Lake Forest, California, notifying her of an opportunity to 
show cause as to why DEA should not revoke her DEA Certificate of 
Registration, AY2422640 under 21 U.S.C. 824(a), and deny any pending 
applications for renewal or modification of that registration. As a 
basis for revocation, the Order to Show Cause alleged that Dr. Yabut-
Baluyut is not currently authorized to handle controlled substances in 
California, the state in which she practices. The order also notified 
Dr. Yabut-Baluyut that should no request for a hearing be filed within 
30 days, her hearing right would be deemed waived.
    The Order to Show Cause was sent by certified mail to Dr. Yabut-
Baluyut at her registered location in Lake Forest, California. DEA 
received a signed receipt indicating that the Order to Show Cause was 
received on Dr. Yabut-Baluyut's behalf on March 5, 2002. DEA has not 
received a request for hearing or any other reply from Dr. Yabut-
Baluyut or anyone purporting to represent her in this matter. 
Therefore, the 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. Yabut-Baluyut is 
deemed to have waived her hearing right. After considering material 
from 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 that Dr. Yabut-Baluyut possessed DEA 
Certificate of Registration AY2422640 and that registration expired on 
May 31, 2001. The registration remains valid, however, based upon 
renewal applications submitted on April 9, 2001, and August 20, 2001.
    The Deputy Administrator further finds that an investigation by DEA 
revealed that from March 1997 through May 1998, Dr. Yabut-Baluyut made 
59 separate purchases totaling 12 million tablets of 60mg. 
pseudoephedrine from Hadro Drugs (formerly Darby Drugs) of Westbury, 
New York. Four of these purchases were in excess of $10,000 in which 
Dr. Yabut-Baluyut used multiple cashier's checks purchased from her 
bank. Dr. Yabut-Baluyut then sold these products to an individual who 
picked up pseudoephedrine products from Dr. Yabut-Baluyut's home and/or 
residence.
    On September 4, 1998, Dr. Yabut-Baluyut was questioned by DEA 
investigators regarding the sale of the above products. Dr. Yabut-
Baluyut informed investigators that she sold pseudoephedrine tablets to 
an individual by the name of ``John.'' Dr. Yabut-Baluyut stated falsely 
to DEA investigators that she did not know how to contact the 
individual. During a subsequent interview with a DEA Special Agent, Dr. 
Yabut-Baluyut reiterated that she did not know the identity of the 
person to whom she sold pseudoephedrine. After further questioning, 
however, Dr. Yabut-Baluyut informed DEA that the individual's name was 
``John Smith.'' Dr. Yabut-Baluyut later admitted that she sold 
pseudoephedrine to ``John Smith'' because she needed the money. DEA 
subsequently learned that Dr. Yabut-Baluyut sold the above referenced 
pseudoephedrine products to an individual by the name of Joseph 
Hasrouty. DEA also learned that Dr. Yabut-Baluyut never provided 
medical treatment to Mr. Hasrouty, nor was he Dr. Yabut-Baluyut's 
patient.
    Pseudoephedrine (DEA chemical code 8112) is a legitimately imported 
and distributed product used in the production of nasal decongestants. 
Pseudoephedrine is also a precursor chemical used in the illicit 
manufacture of methamphetamine or amphetamine, both Schedule II 
controlled substances. Dr. Yabut-Baluyut knew, or should have known 
that the person to whom she sold pseudoephedrine purchased the product 
for purposes of manufacturing methamphetamine. 21 U.S.C. 843(a)(7). In 
addition, Dr. Yabut-Baluyut failed to maintain a record of these 
regulated transactions as required by 21 U.S.C. 830(a).
    On January 19, 1999, Dr. Yabut-Baluyut was arrested pursuant to a 
federal arrest warrant issued from the United States District Court, 
Central District of California on a charge of knowingly possessing and 
distributing approximately 12 million tablets of pseudoephedrine, and 
having reasonable cause to believe that such chemical would be used to 
manufacture a controlled substance in violation of 21 U.S.C. 841. On 
June 15, 2000, Dr. Yabut-Baluyut was indicted on nine felony counts 
related to conspiracy, and unlawful possession of a listed chemical in 
violation of 21 U.S.C. 841 and 846. On June 27, 2001, a superseding 
indictment was issued charging Dr. Yabut-Baluyut with thirteen felony 
counts related to conspiracy, unlawful possession of a listed chemical, 
wrongful distribution of a listed chemical and failure to maintain 
required records, in violation of 21 U.S.C. 841 and 846. On October 16, 
2001, Dr. Yabut-Baluyut was found guilty on nine counts of the 
superseding indictment. Therefore, Dr. Yabut-Baluyut has been convicted 
of a felony related to controlled substances. 21 U.S.C. 824(a)(2).
    On December 9, 1999, the California Medical Board (Board) issued an 
order restricting Dr. Yabut-Baluyut's physician's and surgeon's 
certificate (medical license) pending a hearing before the Board, and 
further ordered that Dr. Yabut-Baluyut be restricted from prescribing, 
administering, dispensing or ordering any controlled substances. On 
December 22, 1999, the Board brought an Accusation against Dr. Yabut-
Baluyut's medical license in the State of California based in part upon 
Dr. Yabut-Baluyut's purchase and sale of pseudoephedrine for no 
legitimate medical reason. The Board further alleged that Dr. Yabut-
Baluyut excessively prescribed dangerous drugs and controlled 
substances, and that Dr. Yabut-Baluyut prescribed dangerous drugs and/
or controlled substances, without a good faith prior examination or 
medical indication. On June 2, 2000, the Board issued a Default 
Decision, in which it ordered the revocation of Dr. Yabut-Baluyut's 
medical license. The decision was to take effect on July 3, 2000. 
However, on June 22, 2000, the Board issued an Order Vacating and 
Setting Aside Disciplinary Decision with respect to the revocation of 
Dr. Yabut-Baluyut's medical license. However, the Board maintained the 
suspension of Dr. Yabut-Baluyut's license with respect to her handling 
of controlled substances, and there is nothing in the investigative 
file that shows that her privileges have been reinstated. Therefore, 
Dr. Yabut-Baluyut currently is not authorized to handle controlled 
substances in the State of California. 21 U.S.C. 824(a)(3).
    DEA does not have statutory authority under the Controlled 
Substances Act to issue or maintain a registration if the applicant or 
registrant is without state authority to handle controlled substances 
in the state in which he conducts business. See 21 U.S.C. 802(21), 
823(f) and 824(a)(3). This prerequisite has been consistently upheld. 
See Muttaiya Darmarajeh, M.D., 66 FR 52936 (2001); Dominick A. Ricci, 
M.D., 58 FR 51104 (1993); Bobby Watts, M.D. 53 FR 11919 (1988).

[[Page 68690]]

    Here, it is clear that Dr. Yabut-Baluyut is not licensed to handle 
controlled substances in the State of California, where she is 
registered with DEA. Therefore, she is not entitled to a DEA 
registration in that state. Moreover, Dr. Yabut-Baluyut has been 
convicted of a felony relating to listed chemicals and has committed 
such acts as would render her registration inconsistent with the public 
interest.
    Accordingly, the Deputy 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 AY2422640, issued to Fredesminda Yabut-
Baluyut, M.D. be, and it hereby is, revoked. The Deputy Administrator 
further orders that any pending applications for renewal or 
modification of such registration be, and they hereby are, denied. This 
order is effective December 12, 2002.

    Dated: October 28, 2002.
John B. Brown, III,
Deputy Administrator.
[FR Doc. 02-28660 Filed 11-8-02; 8:45 am]
BILLING CODE 4410-04-M