[Federal Register Volume 71, Number 101 (Thursday, May 25, 2006)]
[Notices]
[Pages 30172-30173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4839]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Sidney S. Loxley, M.D.; Revocation of Registration

    On January 25, 2005, the Deputy Administrator of the Drug 
Enforcement Administration (DEA) issued an Order to Show Cause and 
Immediate Suspension of Registration to Sidney S. Loxley, M.D. (Dr. 
Loxley) of Chesapeake, Virginia. Dr. Loxley was notified of an 
opportunity to show cause as to why DEA should not revoke his DEA 
Certificate of Registration, AL6366428, as a practitioner, and deny any 
pending applications for renewal or modification of that registration 
pursuant to 21 U.S.C. 823(f) and 824(a)(4) on the basis that his 
continued registration would be inconsistent with the public interest. 
Dr. Loxley was further notified that pursuant to 21 U.S.C. 824(d), his 
DEA registration was being immediately suspended as an imminent danger 
to the public health and safety.
    The Order to Show Cause and Immediate Suspension of Registration 
alleged that Dr. Loxley had been the subject of two prior disciplinary 
proceedings before the Virginia Board of Medicine (Virginia Board). In 
June 1993, his medical license had been suspended for 16 months as a 
result of his abusing the patient-doctor relationship by engaging in a 
sexual relationship with a minor and for a related misdemeanor 
conviction of contributing to the delinquency of a minor. His state 
license was reinstated in October 1994 but in a subsequent disciplinary 
proceeding occurring in October 2003, it was placed on probation for a 
period of not less than three years. At that time the Virginia Board 
found, along with several controlled substance recordkeeping violations 
reflecting gross incompetence, that Dr. Loxley had improperly 
prescribed controlled substances to his wife, who was not his patient 
and was chemically dependent. As a condition of his probation, Dr. 
Loxley was directed to complete a Board approved course in the proper 
prescribing of controlled substances.
    The Order to Show Cause and Immediate Suspension of Registration 
alleged, in sum, that Dr. Loxley had been issuing prescriptions for 
large amounts of controlled substances to individuals without the 
physical examinations, testing or evaluations which are consistent with 
a legitimate doctor-patient relationship. These prescriptions were not 
issued for legitimate medical purposes or in the usual course of 
professional treatment, thus violating 21 CFR 1306.04 and 21 U.S.C. 
841(a). It was further alleged that between September 2003 and May 
2004, on ten separate occasions Dr. Loxley issued prescriptions under 
these circumstances to a DEA Special Agent and a confidential source 
who had been posing undercover as patients. Profiles obtained from area 
pharmacies covering the period between August and December 2004 
indicated he was continuously prescribing large quantities of 
controlled narcotic substances, primarily oxycodone and hydrocodone, in 
120 tablet quantities to patients without apparent legitimate medical 
reasons and supplier records shows that Dr. Loxley was the largest 
orderer of Demerol (meperidine), among all orthopedic surgeons in the 
Virginia Tidewater area.
    Finally, it was alleged that four patients of Dr. Loxley had died 
while under his care as a result of possible excessive prescribing, 
that he prescribed controlled substances while under the influence of 
alcohol and had recently been convicted of driving while intoxicated in 
state court.
    According to the investigative file, the Order to Show Cause and 
Immediate Suspension of Registration was personally served on Dr. 
Loxley by a DEA Diversion Investigator on January 27, 2005. More than 
thirty days have passed since service of the Order to Show Cause and 
Immediate Suspension of Registration and DEA has not received a request 
for hearing or any other reply from Dr. Loxley or anyone purporting to 
represent him in this matter.
    Therefore, the Deputy Administrator of DEA, finding that (1) thirty 
days having passed since the delivery of the Order to Show Cause and 
Immediate Suspension of Registration to Dr. Loxley, and (2) not request 
for hearing having been received, concludes that Dr. Loxley is deemed 
to have waived his hearing right. See David W. Linder, 67 FR 12579 
(2002). After considering material from the investigative file in this 
matter, the Deputy Administrator now enters her final order without a 
hearing pursuant 21 CFR 1301.43(d) and (e) and 1301.46.
    The Deputy Administrator finds the Dr. Loxley is currently 
registered with DEA as a practitioner under DEA Certificate of 
Registration AL 6366424. According to information in the investigative 
file, on January 20, 2005, and indictment was unsealed by order of the 
United States District court, Eastern District of Virginia (Norfolk), 
charging Dr. Loxley with 91 felony counts relating to the unlawful 
distribution and dispensing of controlled substances without a 
legitimate medical purpose under 21 U.S.C. 841(a)(1) and (b)(1)C). The 
indictment includes four counts alleging that a death had resulted from 
Dr. Loxley's unlawful distribution and dispensing. On the date the 
indictment was unsealed, Dr. Loxley was arrested and he remains in 
custody pending trial in the matter of USA v. Sidney Loxley (Case No. 
2:04-cr-00236-WDK-JEB-ALL).
     On February 25, 2005, the Virginia Board notified Dr. Loxley that 
an informal conference had been scheduled to address allegations of 
multiple violations of state laws and regulations governing the 
practice of medicine and surgery and an allegation that he was unfit 
for the performance of his professional obligations and duties and 
unable to practice medicine with reasonable skill and safety. In 
response, Dr. Loxley advised the Virginia Board that he was currently 
unable to address

[[Page 30173]]

the allegations because of the pending criminal charges and was willing 
to surrender his license, pending resolution of that matter.
    On May 20, 2005, after the investigative file was received by the 
Deputy Administrator, Dr. Loxley entered into a Consent Agreement with 
the Virginia Board in which he agreed to surrender his state medical 
license, pending the outcome of the criminal case. In the event he is 
acquitted of all charges, his license will be reinstated. However, if 
he is convicted of any misdemeanor or felony counts, it is to remain 
surrendered until further order of the Virginia Board. Upon entry of 
the Consent Agreement, Dr. Loxley's medical license was recorded as 
being surrendered and no longer current.
    There is no evidence before the Deputy Administrator that the 
Consent Agreement has been modified, lifted or stayed or that Dr. 
Loxley's Virginia medical license has been reinstated or renewed.
    Pursuant to 21 U.S.C. 824(a)(3), the Deputy Administrator may 
revoke a DEA Certificate of Registration if she finds the registrant 
has had state license revoked and is no longer authorized to dispense 
controlled substances in the jurisdiction of registration. 
Alternatively, revocation is authorized if the registrant has committed 
such acts as would render his registration contrary to the public 
interest, as determined by factors listed in 21 U.S.C. 823(f). See 
Thomas B. Pelkowski, D.D.S., 57 FR 28538 (1992).
    Despite Dr. Loxley's egregious and unlawful activities and the 
public interest factors that are implemented by such unprofessional and 
criminal conduct, his lack of state authorization to handle controlled 
substances is dispositive of this matter.
    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 Rory Patrick Doyle, M.D., 69 FR 11655 (2004); Dominick A. Ricci, 
M.D., 58 FR 51104 (1993); Bobby Watts, M.D., 53 FR 11919 (1988).
    Here, it is clear Dr. Loxley surrendered his medical license and it 
is reasonable to infer that he is currently not authorized to handle 
controlled substances in Virginia and is therefore not entitled to a 
DEA registration in that state. As a result of the finding that Dr. 
Loxley lacks any state authorization to handle controlled substances, 
the Deputy Administrator concludes it is unnecessary to address further 
whether his DEA registration should be revoked based upon the public 
interest grounds asserted in the Order to Show Cause and Immediate 
Suspension of Registration. See Gilbert C. Aragon, Jr., D.O., 69 FR 
58536 (2004); Samuel Silas Jackson, D.D.S., 67 FR 65145 (2002); 
Nathaniel-Aikens-Afful, M.D., 62 FR 16871 (1997); Sam F. Moore. D.V.M., 
58 FR 14428 (1993).
    Accordingly, the 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, AL6366428, issued to Sidney S. Loxley, 
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 June 26, 2006.

    Dated: July 6, 2005.
Michele M. Leonhart,
Deputy Administrator.
[FR Doc. 06-4839 Filed 5-24-06; 8:45 am]
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