[Federal Register Volume 71, Number 170 (Friday, September 1, 2006)]
[Notices]
[Pages 52159-52160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14523]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Nashville Wholesale Company, Inc.; Denial of Application

    On July 12, 2005, the Deputy Assistant Administrator, Office of 
Diversion Control, issued an Order to Show Cause to Nashville Wholesale 
Company, Inc., (Respondent) of Nashville and Memphis, Tennessee. The 
Show Cause Order proposed to deny Respondent's pending application for 
registration as a non-retail distributor of List I chemicals on the 
ground that Respondent's registration would be inconsistent with the 
public interest. See 21 U.S.C. 823(h); Show Cause Order at 1.
    The Show Cause Order specifically alleged that Respondent, through 
its owner Nael Abodabba, submitted an application to distribute 
pseudoephedrine, a List I chemical

[[Page 52160]]

which is commonly diverted to the illicit manufacture of 
methamphetamine, a Schedule II controlled substance. Show Cause Order 
at 2. The Show Cause Order alleged that Mr. Abodabba had previously 
owned the Memphis Wholesale Company, which engaged in the distribution 
of List I chemicals under a DEA grandfather exemption. See id. The Show 
Cause Order further alleged that Mr. Abodabba had sold his interest in 
Memphis Wholesale to Mr. Mohammed Issa, who proceeded to distribute 
List I chemicals without obtaining a new DEA registration. See id. The 
Show Cause Order further alleged that Mr. Abodabba failed to notify DEA 
of the change in corporate ownership and that this resulted in Memphis 
Wholesale ``conducting continuing distribution activities without 
authorization.'' Id.
    The Show Cause Order further alleged that while Mr. Abodabba told 
DEA Diversion Investigators that he only intended to sell 
``traditional'' pseudoephedrine products, several of his proposed 
suppliers sold only ``non-traditional pseudoephedrine and ephedrine 
products.'' Id. at 2-3. The Show Cause Order also alleged that several 
of Mr. Abodabba's proposed customers had been found to be selling 
excessive amounts of ephedrine products and that other proposed 
customers had been receiving List I chemical products from distributors 
who had either surrendered a registration or were the subject of a show 
cause proceeding. See id. at 3. Finally, the Show Cause Order alleged 
that ``[i]t appears that Mr. Abodabba is attempting to `churn' his 
distribution activities in order to evade scrutiny, and if registered, 
would likely supply retailers who already have an excessive source of 
supply.'' Id. at 4. The Show Cause Order also notified Respondent of 
its right to a hearing.
    The Show Cause Order was served on Respondent by certified mail, 
return receipt requested at its proposed registered location; on July 
26, 2005, DEA received the signed return receipt card. Since that time, 
neither Respondent, nor anyone purporting to represent it, has 
responded. Because (1) more than thirty days have passed since 
Respondent's receipt of the Show Cause Order, and (2) no request for a 
hearing has been received, I conclude that Respondent has waived its 
right to a hearing. See 21 CFR 1309.53(c). I therefore enter this final 
order without a hearing.

Findings

    I take official notice of the records of the Tennessee Secretary of 
State. According to those records, on June 25, 2004, the Tennessee 
Secretary of State filed a notice of determination that grounds existed 
for dissolving Respondent. Thereafter, on September 17, 2004, the 
Secretary filed a certificate of dissolution thereby administratively 
dissolving Respondent. Under Tennessee law, ``[a] corporation 
administratively dissolved continues its corporate existence but may 
not carry on any business except that necessary to wind up and 
liquidate its business and affairs * * * and notify claimants.'' Tenn. 
Code Ann. Sec.  48-24-202 (West. 2006) (citations omitted). Respondent 
is thus prohibited from engaging in business operations involving the 
distribution of products.
    Under DEA regulations, a registration terminates ``if and when'' a 
registrant ``discontinues business.'' 21 CFR 1309.62(a). While there is 
no provision addressing the status of a pending application when the 
applicant discontinues business, it would make no sense to grant an 
application to register an entity which cannot engage in business. 
Therefore, because Respondent is no longer authorized to engage in 
business other than for the purpose of winding up its affairs, it is 
not entitled to registration and it is unnecessary to consider whether 
Respondent's registration would be inconsistent with the public 
interest. See 21 U.S.C. 823(h).

Order

    Accordingly, pursuant to the authority vested in me by 21 U.S.C. 
823(h), and 28 CFR 0.100(b) and 0.104, I hereby order that the 
previously submitted application of Nashville Wholesale Company, Inc., 
for a DEA Certificate of Registration as a distributor of List I 
chemicals be, and it hereby is denied. This order is effective October 
2, 2006.

    Dated: August 22, 2006.
Michele M. Leonhart,
Deputy Administrator.
 [FR Doc. E6-14523 Filed 8-31-06; 8:45 am]
BILLING CODE 4410-09-P