[Federal Register Volume 69, Number 48 (Thursday, March 11, 2004)]
[Notices]
[Pages 11661-11662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5480]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Stephen J. Graham, M.D. Revocation of Registration

    On August 11, 2003, the Deputy Assistant Administrator, Office of 
Diversion Control, Drug Enforcement Administration (DEA), issued an 
Order to Show Cause to Stephen J. Graham, M.D. (Dr. Graham) of Ketchum, 
Idaho, notifying him of an opportunity to show cause as to why DEA 
should not revoke his DEA Certificate of Registration BG0868971 under 
21 U.S.C. 824(a) and deny any pending application for renewal or 
modification of that registration. As a basis for revocation, the Order 
to show Cause alleged that Dr. Graham is not currently authorized to 
practice medicine or handle controlled substances in Idaho, his state 
of registration and practice.
    The Order to Show Cause further alleged that Dr. Graham's continued 
registration was inconsistent with the public interest as that term is 
used in 21 U.S.C. 823(f). This was based on Dr. Graham's employment by 
Prescibus, an internet company selling controlled substances and other 
drugs over the Internet. During the period Dr. Graham worked for 
Prescibus he issued at least four or five thousand prescriptions over 
the internet, the majority of which were for controlled substances and 
not issued in the usual course of professional medical practice. He was 
alleged to have issued controlled substance prescriptions to 
individuals with whom he did not have a prior doctor-patient 
relationship, failed to conduct physical examinations of those 
customers and did not create or maintain records on them. The only 
information usually reviewed prior to issuing prescriptions was a 
questionnaire completed by the customer. Dr. Graham would then have a 
brief telephone conversation with the customer and did not consult with 
the customer's primary care physician. Undercover investigators were 
alleged to have obtained controlled substances prescriptions from Dr. 
Graham under these circumstances on three occasions. The order notified 
Dr. Graham that should no request for a hearing be filed within 30 
days, his hearing right would be deemed waived.
    The Order to Show Cause was sent by certified mail to Dr. Graham at 
his address of record at 180 First Street West, No. 21, Ketchum, Idaho 
83340 and to P.O. Box 83340, Ketchum, Idaho 83340-5860. According to 
the return receipts, the order was accepted on Dr. Graham's behalf on 
or around August 21 and August 22, 2003. DEA has not received a request 
for hearing or any other reply from Dr. Graham 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. 
Graham is deemed to have waived his hearing right. See Samuel S. 
Jackson, D.D.S., 67 FR 65145 (2002); David W. Linder, 67 FR 12579 
(2002). After considering material from the investigative file, the 
Acting Deputy Administrator now enters her final order without a 
hearing pursuant to 21 CFR 1301.43(d) and (e) and 1301.46.
    The Acting Deputy Administrator finds that Dr. Graham possesses DEA 
Certificate of Registration BG0868971. The Acting Deputy Administrator 
further finds that on or about May 27, 2003, the Idaho Board of 
Medicine

[[Page 11662]]

(Board) was scheduled to initiate a Formal Hearing into the internet 
prescribing practices of Dr. Graham, who held Idaho Medical License 
Number M7224 and Idaho Controlled Substances License Number CS7265. On 
June 6, 2003, in lieu of proceeding with the Formal Hearing, the Board 
and Dr. Graham entered into a Stipulation and Order in which Dr. Graham 
agreed to surrender his Idaho medical and controlled substance licenses 
and to not practice medicine or write prescriptions in Idaho for a 
minimum of five years.
    The investigative file contains no evidence that the Stipulation 
and Order has been modified or lifted or that Dr. Graham's medical 
license has been reinstated or returned to him. Therefore, the Acting 
Deputy Administrator finds that Dr. Graham is not currently authorized 
to practice medicine in the State of Idaho. As a result, coupled with 
surrender of his controlled substances license, it is reasonable to 
infer he is also without authorization to handle controlled substances 
in that state.
    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 James F. Graves, M.D., 67 FR 70968 (2002); Dominick A. Ricci, M.D., 
58 FR 51104 (1993); Bobby Watts, M.D. 53 FR 11919 (1998).
    Here, it is clear that Dr. Graham's medical license has been 
surrendered and he is currently not licensed to handle controlled 
substances in the State of Idaho, the state where he maintains a DEA 
controlled substance registration. Therefore, Dr. Graham is not 
entitled to a DEA registration in that state. Because Dr. Graham is not 
entitled to a DEA registration in Idaho due to his lack of state 
authorization to handle controlled substances, the Acting Deputy 
Administrator concludes it is unnecessary to address whether or not his 
DEA registration should be revoked based upon the public interest 
grounds asserted in the Order to Show Cause. See Samuel Silas Jackson, 
D.D.S., 67 FR 65145 (2002); Nathaniel-Aikins-Afful, M.D., 62 FR 16871 
(1997); Sam F. Moore, D.V.M., 58 FR 14428 (1993).
    Accordingly, the Acting Deputy Administrator of the Drug 
Enforcement Administration, pursuant to the authority vested in her by 
21 U.S.C. 823 and 824 and 28 CFR 0.100(b) and 0.104, hereby orders that 
DEA Certificate of Registration BG086971, issued to Stephen J. Graham, 
M.D., be, and it hereby is, revoked. The Acting Deputy Administrator 
further orders that any pending applications for renewal of such 
registration be, and they hereby are, denied. This order is effective 
April 12, 2004.

    Dated: February 20, 2004.
Michele M. Leonhart,
Acting Deputy Administratorr.
[FR Doc. 04-5480 Filed 3-10-04; 8:45 am]
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