[Federal Register Volume 78, Number 151 (Tuesday, August 6, 2013)]
[Notices]
[Pages 47750-47778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18922]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration

[Docket No. 11-30]


Mireille Lalanne, M.D.; Denial of Application

    On August 18, 2011, Chief Administrative Law Judge (ALJ) John J. 
Mulrooney, II, issued the attached decision, recommending that I deny 
the Respondent's application for a Certificate of Registration as a 
practitioner. Thereafter, the Government, but not Respondent, filed 
Exceptions to the decision.\1\
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    \1\ All citations to the ALJ's Decision are to the slip opinion 
as originally issued by him.
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    Having reviewed the entire record and the Government's Exceptions, 
I have decided to adopt the ALJ's recommended rulings, findings of 
fact, conclusions of law, and recommended order except as discussed 
below.\2\ I will

[[Page 47751]]

therefore order that Respondent's application be denied.
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    \2\ I do not adopt the ALJ's discussion of Factor 2 (the 
applicant's experience in dispensing controlled substances) 
contained in the third paragraph of page 52 of his decision. Nor do 
I adopt the ALJ's reasoning that there is ``an arguable lack of at 
least readily- apparent ambiguity'' in the language of factor two. 
ALJ at 53 (citing Chevron U.S.A., Inc. v. NRDC, Inc., 467 U.S. 837 
(1984)). In short, Congress only directed that the Agency 
``consider'' evidence regarding an applicant's experience in 
dispensing controlled substances; nothing in the statute tells the 
Agency how much weight to give a practitioner's evidence of, in the 
ALJ's words, ``hav[ing] conducted a significant level of sustained 
activity within the scope of [her] registration for a sustained 
period.'' ALJ at 52.
    As set forth in multiple cases, DEA can revoke based on a single 
act of intentional or knowing diversion, and an applicant's/
registrant's evidence that she has otherwise complied with the CSA 
for a sustained period, does not, by itself, refute the Government's 
prima facie case. See Dewey C. MacKay, 75 FR 49956, 49977 (2010) 
(citing Jayam Krishna-Iyer, 74 FR 459,463 (2009)), pet. for rev. 
denied 664 F.3d 808 (10th Cir. 2011). Indeed, in MacKay, 
the Tenth Circuit expressly rejected the contention that a 
practitioner's so-called ``positive experience'' negates a prima 
facie showing of intentional diversion. See 664 F.3d at 819 
(``Although Dr. MacKay may have engaged in the legitimate practice 
of pain medicine for many of his patients, the conduct found by the 
Deputy Administrator with respect to [two patients] is sufficient to 
support her determination that his continued registration is 
inconsistent with the public interest.''). So too, where, as here, 
the evidence supports a finding that an applicant/registrant acted 
with deliberate ignorance in prescribing controlled substances. As 
the ALJ correctly noted, in such cases, ``Agency precedent has 
firmly placed acknowledgment of [wrongdoing] and acceptance of 
responsibility as conditions precedent to merit the granting or 
continuation'' of a registration. ALJ at 44 (citing cases).
    This is not to say that such evidence is never entitled to 
weight. Such evidence may persuade the Agency that an applicant/
registrant has offered credible testimony that she accepts 
responsibility and will not engage in future misconduct. So too, 
where the Government's proof does not establish egregious 
violations, such evidence is given due consideration in setting the 
appropriate sanction. See Gregg & Sons, Distributors, 74 FR 17517, 
17524 (2009).
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The Government's Exception

    The Government takes exception to the ALJ's conclusion that the 
unsworn hearsay statement of TG, purportedly one of Respondent's former 
patients, was entitled to no weight, because the Government did not 
establish that the statements contained therein are sufficiently 
reliable to constitute substantial evidence of a material fact.\3\ 
Exceptions at 1 (citing ALJ at 7-9). Specifically, the Government 
elicited the testimony of a former Assistant Commonwealth's Attorney 
(hereinafter, prosecutor) regarding his interview of TG to show that 
Respondent had doubled TG's dose of Xanax for no medical reason. 
Exceptions at 2. Significantly, TG's unsworn statement comprised the 
entirety of the Government's proof of the allegation.
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    \3\ The Government agrees with the ALJ's ultimate conclusion 
that Respondent ```has committed acts that render [her] registration 
inconsistent with the public interest''' and his recommendation that 
her application be denied. Exceptions at 1.
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    In declining to give weight to TG's statement, the ALJ applied the 
four factors for assessing the reliability of hearsay evidence set 
forth in J.A. M. Builders, Inc., v. Herman, 233 F.3d 1350 (11th Cir. 
2000). More specifically, the ALJ explained that:

    No foundation was laid by the Government regarding the absence 
of bias from . . . TG. The information provided in the interview[] 
could not be tested for consistency because such testimony was not 
corroborated by other evidence of record. Furthermore, there is no 
case law or other authority recognizing this variety of evidence as 
inherently reliable. Simply put, the Government, as a proponent of 
the evidence, did not lay a foundation sufficient to permit 
consideration of [TG's] interview[] to support [a finding that it 
constitutes] substantial evidence . . . .

ALJ at 8.
    Notably, the Government does not take issue with the ALJ's reliance 
on J.A. M. Builders, even though that case is not binding on the Agency 
outside of a matter which falls within the jurisdiction of the Eleventh 
Circuit.\4\ Instead, the Government argues that the ALJ improperly 
``placed the burden on the Government to prove a stream of negatives as 
a prerequisite to giving the testimony any weight.'' Exceptions at 
3.\5\
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    \4\ It is noted that the Government does not cite to any case 
law of either the Sixth Circuit or DC Circuit, the two courts of 
appeals which would have jurisdiction were Respondent to file a 
petition for review.
    \5\ The Government notes that ``there was no objection to [the 
former prosecutor's] testimony regarding TG's out of court 
statement.'' Exceptions at 3 & n.1. While Respondent's failure to 
object ```is a waiver upon appeal of any ground of complaint against 
its admission,''' TG's statement became ```part of the evidence in 
the case, and is usable as proof to the extent of whatever rational 
persuasive power it may have.''' Passaic Daily News v. NLRB, 736 
F.2d 1543, 1554 (DC Cir. 1984) (quoting C. McCormick, Handbook of 
the Law of Evidence 113 (2d ed. 1972)). However, because as 
explained in this decision, I agree with the ALJ that TG's statement 
lacks sufficient indicia of reliability, it has no rational 
persuasive power. Accordingly, Respondent's failure to object to the 
testimony is of no consequence.
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    Regarding the first J.A. M. Builders factor--the issue of TG's 
potential bias--the Government argues that the former prosecutor 
testified about his interview and ``based on the testimony and cross-
examination, no bias or inconsistencies were detected on TG's part.'' 
Exceptions at 4. As to the second factor--whether the statement was 
made known to Respondent prior to the hearing and whether the declarant 
could have been subpoenaed--the Government argues that TG's name and 
the details of his interview were ``disclosed to Respondent prior to 
the hearing, but Respondent declined to have [him] subpoenaed or take 
any steps to determine the veracity of [his] statement.'' Id. With 
respect to the third factor--whether the information was inconsistent 
on its face--the Government argues that ``there was nothing 
inconsistent on its face'' in the testimony of the former prosecutor 
regarding the interview, and that the ALJ improperly relied on 
inconsistencies in a transcript of the interview which the Government 
did not offer into evidence. Id.
    Finally, addressing the fourth factor--whether the information has 
been recognized by the courts as inherently reliable--the Government 
contends that ``the truth of the facts alleged by TG could have been 
corroborated (or refuted) by an examination of TG's medical record,'' 
and that ``[p]resuming that Respondent made medical notes reflecting 
changes in TG's condition, she would have had access to the type of 
evidence needed to verify TG's statement that he received an amount of 
Xanax in excess of what was medically necessary.'' Id.\6\ Thus, the 
Government contends that TG's statement ``was not unlike hearsay 
testimony from a laboratory report or laboratory technician which has 
been found to be inherently reliable because it can be verified with 
other scientific data, i.e., TG's medical file.'' Id. at 4-5 (citing 
United States v. Minnitt, 617 F. 3d 327, 334-35 (5th Cir. 2010)).
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    \6\ Contrary to the Government's statement, it is obvious that 
Respondent would have no interest in verifying TG's statements that 
he received Xanax in an amount that exceeded what was medical 
necessary.
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    Notwithstanding that the ALJ should have looked to the case law of 
the Sixth and DC Circuits in determining whether TG's statement 
constituted substantial evidence of the material fact for which it was 
offered, the Government's exception is still not well taken. As for its 
contention that the ALJ improperly ``placed the burden on the 
Government to prove a stream of negatives as a prerequisite to giving 
the testimony any weight,'' Exceptions at 3, apparently, in the 
Government's view, the mere admission of the evidence was sufficient to 
place on Respondent the burden of showing that the statement is not 
reliable.
    The Government cites no authority for its position. Moreover, while 
it may be that the burden of producing evidence showing that some of 
the factors which counsel against giving weight to a hearsay statement 
is properly placed on the party against whom the statement is offered, 
the Government acknowledges no obligation to establish even a threshold 
level of reliability.\7\ However, under the Administrative Procedure 
Act, ``the proponent of a rule or order has the burden of proof,'' 5 
U.S.C. 556(d), and given the manner in which courts generally treat the 
admission of hearsay, it seems most unlikely that any

[[Page 47752]]

court of appeals would sustain the Government's view.
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    \7\ For example, had TG given his statement under oath or 
provided an affidavit, some threshold level of reliability would 
have been established. Under such circumstances, the Government 
might have a point in arguing that Respondent should then have to 
show that TG was not disinterested. However, unsworn statements are 
notoriously unreliable and the Government put forward no evidence of 
corroborating circumstances which would support the conclusion that 
the statement was trustworthy.
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    For example, under the Federal Rules of Evidence, the proponent 
offering a hearsay statement ``bears the burden of showing the 
requirements are satisfied.'' Christopher B. Mueller & Laird C. 
Kirkpatrick, Federal Evidence Sec.  8:140, at 271 (3d ed. 2007). 
Analogous to the statement at issue here, a hearsay statement, which is 
not otherwise admissible under one of the various exceptions contained 
in Rules 803 and 804 of the Federal Rules of Evidence, may nonetheless 
be admissible if ``the statement has equivalent circumstantial 
guarantees of trustworthiness''; in other words, if it is deemed to be 
sufficiently reliable. F.R. Evid. R. 807. Yet the courts have uniformly 
held that the proponent of the statement has the burden of establishing 
that it is trustworthy and admissible. See United States v. Kim, 595 
F.2d 755, 766 (DC Cir. 1979) (``the burden is on the proponent to 
produce evidence of trustworthiness''); see also United States v. York, 
852 F.2d 221, 225 (7th Cir. 1988) (``The government argues that it was 
[the defendant] who failed to make the notes of the interviewers a part 
of the record. However, it was the government . . . which bore the 
burden of demonstrating that the testimony it offered was trustworthy 
and entitled to an exception under the rule against hearsay 
testimony.''); See also NLRB v. United Sanitation Serv., 737 F.2d 936, 
941 (11th Cir. 1984) (``the burden is on the party seeking to invoke 
the residual exception to clearly demonstrate the existence of the 
requisite guarantees of trustworthiness''); United States v. Colson, 
662 F.2d 1389, 1392 (11th Cir. 1981) (``having offered the transcript 
[of an interview by police of a third-party] under the residual hearsay 
exception . . . [defendant] bore the burden of establishing, inter 
alia, the trustworthiness and probative value of the transcript, a 
burden he failed to maintain'').
    To be sure, the Federal Rules of Evidence do not apply in this 
proceeding and ```[p]rovided it is relevant and material, hearsay is 
admissible in [an] administrative proceeding,''' and may ```under 
certain circumstances . . . constitute substantial evidence.' '' Bobo 
v. United States, 52 F.3d 1406, 1414 (6th Cir. 1995) (quoting Hoska v. 
United States Dep't of the Army, 677 F.2d 131, 138 (DC Cir. 1982)). 
However, establishing that evidence is admissible requires crossing a 
lower threshold (whether in an administrative or judicial proceeding) 
than does showing that the evidence is sufficiently reliable to 
constitute substantial evidence (or, in a judicial proceeding, to 
satisfy a party's burden of proof). As a leading authority states:

    Admissibility . . . is a quality standing between relevancy, or 
probative value, on the one hand, and proof, or weight of the 
evidence, on the other hand. . . . Yet it does not signify that the 
particular fact has demonstrated or proved the proposition to be 
proved, but merely that it is received by the tribunal for the 
purpose of being weighed with other evidence.

I Wigmore on Evidence Sec.  12, at 689 (Tillers rev. ed. 1983). As 
Wigmore further explains, ``[a]dmissibility falls short of proof or 
demonstration.'' Id. at 692.
    With respect to the use of hearsay in administrative proceedings, 
both the Sixth and DC Circuits have explained that ```hearsay may be 
substantial evidence depending on its truthfulness, reasonableness, and 
credibility; hearsay statements are highly probative where declarants 
are disinterested witnesses, statements are essentially consistent, and 
counsel had access to the statements prior to agency hearing.''' Bobo, 
56 F.3d at 1414 (quoting Hoska, 677 F.3d at 138-39). Moreover, 
```hearsay may constitute substantial evidence depending upon its 
probative value and reliability, considering inter alia, possible bias 
of the declarant, whether [the] statements are signed and sworn to, 
whether they are contradicted by direct testimony, whether the 
declarant is available, and whether the hearsay is corroborated.''' 
Bobo, 56 F.3d at 1414 (quoting Hoska, 677 F.3d at 139) (other citation 
omitted).\8\
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    \8\ While the ALJ relied on J.A.M. Builders, the same outcome is 
reached under the decisions of the Sixth Circuit in Bobo and DC 
Circuit in Hoska. I address the Government's exception under both 
the J.A.M. Builders factors and the Bobo/Hoska factors.
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    As to the potential bias of TG, the Government has not established 
that he was a disinterested witness. As the record establishes, TG was 
questioned during a law enforcement investigation into drug trafficking 
syndicates that were traveling from Harlan County, Kentucky to 
Nashville, Tennessee to obtain controlled substances which were then 
sold in Harlan County, and it appears that he offered the specific 
statement at issue here when the prosecutor needed evidence to respond 
to a motion by Respondent to dismiss the state court indictment. No 
evidence was offered as to whether, at the time of the interview, TG 
had been offered immunity or remained under jeopardy of criminal 
prosecution. Indeed, the Government argues that ``TG freely implicated 
himself in a scheme to obtain controlled substances from Respondent's 
practice for illegal purposes.'' Exceptions at 5. However, having 
implicated himself in such activity, TG would have had ample motivation 
to curry favor for himself (such as a reduction in likely criminal 
charges) by telling the authorities what they wanted to hear. See 
United States v. McCleskey, 228 F.3d 640, 644 (6th Cir. 2000) 
(``[W]here, as here, it is the government which seeks to introduce a 
statement, otherwise hearsay, which inculpates its declarant but which, 
in its detail, also inculpates the defendant by spreading or shifting 
onto him some, much, or all of the blame, the out-of-court statement 
lacks such indicia of reliability. It is garden variety hearsay as to 
the defendant and it does not lose that character merely because it in 
addition reliably inculpates the declarant.'').
    Moreover, TG's statement was unsworn. While an unsworn hearsay 
statement may, in some circumstances, still constitute substantial 
evidence, see J.A.M. Builders, 233 F.3d at 1353 & 1355, courts are 
frequently skeptical of such statements, especially where the declarant 
cannot be viewed as a disinterested observer and the proponent of the 
evidence fails to put forward any evidence corroborating the statement 
or demonstrating its reliability. See Hoska, 677 F.2d at 288.
    Here, the Government did not introduce TG's medical chart, which 
might well have shown that Respondent had doubled the dose of Xanax 
without documenting any reason for doing so. Indeed, the Government did 
not introduce any evidence (other than TG's statement) to show that 
Respondent had even prescribed controlled substances to him, let alone 
that she had doubled TG's purported Xanax dose for no medical reason. 
Contrary to its understanding, the ALJ properly placed the burden on 
the Government to corroborate TG's statement and not on Respondent to 
refute it.\9\
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    \9\ As for the Government's contention that TG's statement is 
``not unlike hearsay testimony from a laboratory report or a 
laboratory technician, which has been found to be inherently 
reliable,'' Exceptions at 4-5 (citing Minnitt, 617 F.3d at 334-35, 
the Government ignores that the Minnitt court expressly stated that 
such reports ```are not so inherently reliable as to be 
automatically admissible.' '' Id. at 334 (quoting United States v. 
McCormick, 54 F.3d 214, 223-24 (5th Cir. 1995)). Indeed, in neither 
Minnitt nor McCormick did the Government simply introduce the report 
of the failed drug test and nothing more to establish that the 
evidence was reliable. See id. (discussing other evidence supporting 
a finding that the evidence was reliable including that result had 
been confirmed by two different labs); see also McCormick, 54 F.3d 
at 224 (noting that ``the government proffered significant evidence 
demonstrating that the information reported in . . . urinalysis 
report [wa]s extremely reliable''). In addition, the evidence at 
issue in Minnitt (and McCormick) involved an issue of scientific 
fact; as such, the credibility of the declarant (i.e., the lab 
technician), stands on a dramatically different footing than that of 
TG, who was implicated in criminal activity. Likewise, in contrast 
to TG's statement, which involved the relation of historical facts 
several years after the incident, a lab report is typically a 
contemporaneously prepared record of the results and thus a record 
of a regularly conducted activity, which is admissible in Federal 
Court as a hearsay exception under Rule 803, in part because the 
preparer of the report has a duty to accurately report the results. 
Finally, there is absolutely no support for the contention that the 
courts have found statements, such as that given by TG, to be 
inherently reliable.

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[[Page 47753]]

    Nor does the purported consistency of TG's statement give any 
reason to reject the ALJ's finding that TG's statement does not 
constitute substantial evidence. Absent the complete statement, and 
thus the ability to determine whether there were inconsistencies in the 
statement (or potential inconsistencies which were not explored by the 
former prosecutor), the absence of inconsistencies in the snippets 
which were related by the former prosecutor is of considerably less 
consequence in determining whether TG's statement was reliable.\10\ See 
U.S. v. York, 852 F.2d at 225-26.
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    \10\ The Government notes that the ALJ relied on the transcript 
of the interview TG gave to a deputy sheriff, which was not entered 
into evidence and faults the ALJ for relying on this interview to 
conclude that TG's statement contained inconsistencies. According to 
the Government, ``[l]ooking at the testimony of [the former 
prosecutor] regarding his interview with TG, there was nothing 
inconsistent on its face and the alleged inconsistencies pointed out 
by the ALJ (from Government Exhibit 21) [, a non-admitted exhibit,] 
were neither inconsistencies nor part of the official administrative 
record.'' Exceptions at 4. Even if the ALJ erred in reviewing a non-
admitted exhibit to determine whether TG's statement was consistent, 
given that the weight of the factors counsels against the statement 
being deemed reliable, I conclude that any error is not prejudicial. 
Cf. 5 U.S.C. 706 (``due account shall be taken of the rule of 
prejudicial error''); cf. also F.R. Evid. R. 104 (``In making its 
determination'' as to whether evidence is admissible, a court is 
``not bound by the rules of evidence except those with respect to 
privileges.'').
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    The Government further argues that TG's name and the details of the 
statement were provided to Respondent in advance of the hearing, and 
that Respondent could have, but did not, subpoena him. While it true 
that the Government disclosed TG's name and that it intended to elicit 
testimony of his statement regarding the increase in his Xanax 
prescription, see ALJ Ex. 6, at 17, as for whether TG was available as 
a witness, the record is completely barren.\11\
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    \11\ It is acknowledged that the Government disclosed TG's 
actual name in a legend which listed the names of various patients. 
See ALJ Ex. 7; Ex. 1, at 2. However, it did not disclose TG's 
address and no other information establishes if his whereabouts are 
known. Cf. F.R. Evid. R. 807 (requiring party offering statement to 
``make[] known to the adverse party . . . the particular of [the 
statement], including the name and address of the declarant'').
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    Finally, it is acknowledged that Respondent did not contradict TG's 
statement in her testimony.\12\ Putting aside whether Respondent had 
any obligation to contradict an unsworn and uncorroborated hearsay 
statement, this factor provides some support for concluding that TG's 
statement was reliable. However, even when it is coupled with the other 
factors which support the Government's position, on balance, the 
Government has still failed to overcome the other factors (i.e., lack 
of proof that TG was disinterested, the unsworn nature of the 
statement, and lack of any corroboration) which strongly counsel 
against the conclusion that TG's statement possesses sufficient indicia 
of reliability to be deemed substantial evidence. Accordingly, I reject 
the exception.\13\
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    \12\ The Government did not address this factor.
    \13\ While the Government took exception to the ALJ's 
declination to give weight to TG's statement, it did ``not take 
exception to the ALJ's failure to give weight to the out-of-court 
statements'' of three other persons, AW, TE, and CM. Exceptions at 5 
n.4. Significantly, the Government moved into evidence an affidavit 
provided by AW, as well as a transcription of an interview she gave 
to the former prosecutor. AW's out-of-court statements presented a 
considerably stronger case than that of TG as to whether they were 
sufficiently reliable so as to constitute substantial evidence. 
However, because the Government does not challenge the ALJ's 
findings with respect to AW, I do not address whether her statements 
constitute substantial evidence.
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Order

    Pursuant to the authority vested in me by 21 U.S.C. 823(f), as well 
as 28 CFR 0.100(b), I order that the application of Mireille Lalanne, 
M.D., for a DEA Certificate of Registration as a practitioner be, and 
it hereby is, denied. This order is effective September 5, 2013.

    Dated: July 30, 2013.
Michele M. Leonhart,
Administrator.
Frank Mann, Esq., for the Government
Paul J. Bruno, Esq., for the Respondent

RECOMMENDED RULINGS, FINDINGS OF FACT, CONCLUSIONS OF LAW, AND DECISION 
OF THE ADMINISTRATIVE LAW JUDGE

    John J. Mulrooney, II, Chief Administrative Law Judge. On January 
14, 2010, Dr. Mireille Lalanne, M.D., (Respondent) filed an application 
with the Drug Enforcement Administration (DEA) for a practitioner 
Certificate of Registration (COR), Control No. W10001926C. Gov't Ex. 2. 
On February 10, 2011, the DEA Deputy Assistant Administrator issued an 
Order to Show Cause (OSC) proposing to deny the Respondent's COR 
application on the grounds that the granting of her request for a COR 
would be inconsistent with the public interest, as that term is used in 
21 U.S.C. Sec.  823(f) (2006 & Supp. III 2010). On March 11, 2011, the 
Respondent timely requested a hearing, which was conducted in 
Nashville, Tennessee from June 7 through June 9, 2011.
    The issue ultimately to be adjudicated by the Administrator, with 
the assistance of this recommended decision, is whether the record as a 
whole establishes by substantial evidence that the Respondent's 
application for a registration with the DEA should be denied as 
inconsistent with the public interest, as that term is used in 21 
U.S.C. Sec.  823(f).
    After carefully considering the testimony elicited at the hearing, 
the admitted exhibits, the arguments of counsel, and the record as a 
whole, I have set forth my recommended findings of fact and conclusions 
of law below.

The Allegations

    The OSC issued by the Government alleges that granting the 
Respondent's pending COR application would be inconsistent with the 
public interest based on the facts which, in its view, were related and 
contributed to the February 26, 2009, voluntary surrender of the COR 
that she held previously. Specifically, the OSC alleges: (1) that the 
Respondent was indicted and arrested for various state criminal 
violations, including facilitating the activities of a criminal 
syndicate trafficking in controlled substances,\1\ second degree 
assault,\2\ and wanton endangerment; \3\ (2) that, consistent with a 
plea deal, she was ultimately convicted in a Kentucky state court of 
facilitating the trafficking of a controlled substance in the first 
degree; \4\ and (3) that on March 22, 2010, the Tennessee Board of 
Medical Examiners (Tennessee Medical Board) concluded that she had 
committed misconduct sufficient to provide grounds for discipline, to 
wit: unprofessional, dishonorable, or unethical conduct \5\ and a state 
drug law conviction.\6\ ALJ Ex. 1 at 2. The Government's OSC further 
alleges that granting the pending COR application would be improvident 
because the Respondent prescribed controlled substances ``without a 
legitimate medical purpose and/or outside the

[[Page 47754]]

usual course of professional practice'' on numerous occasions, in the 
face of evidence where such prescribing was contraindicated or 
heightened diversion risks were present. Id.
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    \1\ Ky. Rev. Stat. Ann. Sec.  506.120 (West 2009).
    \2\ Id. Sec.  508.020.
    \3\ Id. Sec.  508.060.
    \4\ Id. Sec.  218A.1412.
    \5\ Tenn. Code Ann. Sec.  63-6-214(b)(1) (LexisNexis 2009).
    \6\ Id. Sec.  63-6-214(b)(10).
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The Stipulations of Fact

    The Government and the Respondent, through counsel, have entered 
into stipulations regarding the following matters:
    Stipulation A: The Respondent was previously registered with DEA as 
a practitioner in Schedules II-V under DEA registration number 
AL1720588 at Tennessee Professional Associates, 3507 Charlotte Avenue, 
Nashville, Tennessee 37209-3936.
    Stipulation B: On November 10, 2008, the Respondent was indicted by 
a grand jury in Harlan County, Kentucky (Harlan County Grand Jury) on 
five felony counts, including: (1) engaging in organized crime by 
providing controlled substances to three different ``syndicates'' 
(Counts I-III); (2) second degree assault by providing controlled 
substances to a pregnant patient whose child's health was damaged by 
the drugs (Count IV); and (3) wanton endangerment of an unborn child by 
providing controlled substances to the mother (Count V).\7\
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    \7\ Early during prehearing proceedings, the Government 
indicated that it did not intend to prove up acts set forth in the 
indictments or arrest warrants beyond the acts that were the subject 
of the misdemeanor plea disposition. See Stipulation F. Thus, 
although these criminal charges are the subject of a stipulation, 
and the procedural posture of the criminal case factored into the 
circumstances surrounding the Respondent's COR surrender, see 
Stipulation D, the underlying criminal allegations have played no 
role in this recommended decision and must play no role in the 
ultimate disposition of the pending application. See Paul Weir 
Battershell, N.P., 76 Fed. Reg. 44359, 44364 n.17 (2011) (concluding 
that an indictment is an instrument containing accusations, not 
proof of the Respondent's actions).
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    Stipulation C: On February 4, 2009, the Respondent was arrested and 
charged with prescribing large quantities of OxyContin and methadone to 
approximately 350 residents of Harlan County with the knowledge that 
the patients were distributing these drugs to others.\8\
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    \8\ See supra note 7.
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    Stipulation D: On February 26, 2009, the Respondent surrendered her 
DEA registration as a condition of being released on bond.
    Stipulation E: On September 8, 2009, the Respondent was indicted by 
the Harlan County Grand Jury on a single count of wanton murder, a 
capital offense. The Grand Jury charged that Respondent caused the 
death of a woman by providing her with addictive and dangerous drugs 
with the knowledge that the woman was addicted to the drugs and at a 
very high risk of death by overdose.\9\
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    \9\ See supra note 7.
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    Stipulation F: On January 11, 2010, the Respondent entered an 
Alford\10\ plea to a misdemeanor count of facilitation of trafficking 
in a controlled substance in the first degree (Schedule I or II) in 
satisfaction of the pending criminal charges. By entering an Alford 
plea, Respondent did not admit guilt but acknowledged that the evidence 
against her strongly indicated guilt and that her best interests were 
served by a guilty plea. As a result of the Alford plea, all remaining 
charges were dismissed.
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    \10\ See North Carolina v. Alford, 400 U.S. 25 (1970).
---------------------------------------------------------------------------

    Stipulation G: The Respondent was sentenced to four months of 
unsupervised probation and agreed not to prescribe controlled 
substances to any resident of Harlan County, Kentucky. Respondent also 
agreed to forfeit $500,000 in bond money, with half going to fund youth 
drug prevention.
    Stipulation H: On January 14, 2010, the Respondent submitted an 
online application for registration, control number W10001926C.
    Stipulation I: On January 29, 2010, the Tennessee Board of Medical 
Examiners summarily suspended the Respondent's medical license, No. 
14207.
    Stipulation J: By Final Order effective March 23, 2010, the 
Tennessee Medical Board reinstated the Respondent's medical license and 
placed her license on probation for five years and until Respondent 
completed several conditions specified in the Order. The specified 
probation conditions include: (1) undergoing an evaluation by the 
Center for Personalized Education; (2) completing a 2-day course on 
medical ethics and a 3-day course of medical recordkeeping; and (3) 
obtaining practice monitoring for five years.\11\ During the practice 
monitoring, at least ten percent of all Respondent's patient medical 
files must be reviewed each month and Respondent must receive training 
in the treatment of chronic or intractable pain. The practice monitor 
must also provide the Medical Board with reports every three months 
that include Respondent's: (1) compliance with the practice monitor's 
recommendations; (2) completion of education programs; (3) prescribing 
practices; (4) medical recordkeeping; and (5) treatment of chronic or 
intractable pain.
---------------------------------------------------------------------------

    \11\ During the April 12, 2011 Prehearing Conference, the 
Respondent, through counsel, represented that because she has not 
been practicing medicine since the conviction, she has not been 
monitored.
---------------------------------------------------------------------------

    Stipulation K: Missing pages from the medical chart of Patient RW 
\12\ contained in Respondent's Exhibit 32 were not available to the 
Government's medical expert witness, through no fault of his own, at 
the time of his review of the medical file and preparation of his 
report.
---------------------------------------------------------------------------

    \12\ Pursuant to a Protective Order issued in this case on March 
21, 2011, initials have been substituted for the names of patients. 
ALJ Ex. 9.
---------------------------------------------------------------------------

    Stipulation L: Respondent's Exhibit 2 reflects an interview 
conducted of Patient RF by Carl Christiansen, a private investigator 
employed by the Respondent. The interview was conducted on a date 
between February 2009 and January 2010. Neither party warrants the 
veracity of RF's statements.

[[Page 47755]]

The Evidence

    At the hearing conducted in this matter, the Government presented 
the testimony of: (1) a former state prosecutor and local police 
officer familiar with the criminal cases that comprise the genesis of 
the administrative investigation of the COR application that the 
Respondent filed in this case; (2) two diversion investigators relative 
to the investigation of the pending application; and (3) and an expert 
witness who reviewed selected patient charts from the Respondent's 
practice and provided expert opinions regarding the Respondent's 
prescribing practices.
    In addition to presenting her case through her own testimony, the 
Respondent called her own expert witness.

The Kentucky Criminal Investigation and Conviction

    The Government presented the testimony of Deputy John Teagle. At 
all times relevant to this case, Deputy Teagle was a narcotics 
detective at the Harlan County, Kentucky Sheriff's Department. Tr. 409. 
Deputy Teagle testified that the investigation that culminated 
ultimately in the Respondent's conviction commenced when law 
enforcement personnel noticed that controlled substance prescription 
bottles discovered during drug raids were issued by the Respondent's 
(then) partner at Tennessee Professional Associates (TPA), Dr. V. 
Vilvarajah. Tr. 410. While Teagle's testimony was sufficiently 
detailed, internally consistent, and plausible to be regarded as 
credible for these proceedings, this brief summary of its content 
circumscribes completely the entire boundaries of its acceptable use in 
these proceedings.
    The Government elicited testimony from Deputy Teagle regarding an 
interview \13\ he conducted with TE, a former patient at TPA.\14\ A 
timely (and ultimately well-founded) objection was interposed by the 
Respondent's counsel in resistance to the Government's efforts to 
present this evidence in this manner. Tr. 412-14. While it is true that 
the evidence regarding Teagle's interview was received into the record 
as not patently inadmissible, that is a separate issue from the weight 
that can correctly be afforded to it. To be sure, hearsay testimony (as 
well as other forms of hearsay) is admissible evidence in 
administrative proceedings. Richardson v. Perales, 402 U.S. 389, 402 
(1971) (signed reports prepared by licensed physicians admitted 
correctly at Social Security disability hearing); Keller v. Sullivan, 
928 F.2d 227, 230 (7th Cir. 1991) (insurance company investigative 
reports admitted correctly in Social Security disability hearing where 
sufficient indicia of reliability established); Calhoun v. Bailar, 626 
F.2d 145, 149 (9th Cir. 1980) (hearsay affidavits admitted correctly 
where indicia of reliability established). However, the weight afforded 
such testimony and, a fortiori, whether that testimony constitutes 
substantial evidence is an entirely different matter. As succinctly 
stated by the Eleventh Circuit:
---------------------------------------------------------------------------

    \13\ A transcript of this interview, which had been taped by 
Teagle, was received into evidence. See Gov't Ex. 20.
    \14\ The sum and substance of TE's statement to Teagle portrayed 
him as an addict who successfully procured controlled substance 
prescriptions from the Respondent and her partner at TPA for no 
legitimate reason. Tr. 413-14; Gov't Ex. 20.

    Although the rules of evidence are not strictly applied in 
administrative hearings, there are due process limits on the extent 
to which an adverse administrative determination may be based on 
hearsay evidence. As was held in U.S. Pipe and Foundry Company v. 
Webb, ``hearsay may constitute substantial evidence in 
administrative proceedings as long as the factors that assure the 
`underlying reliability and probative value' of the evidence are 
---------------------------------------------------------------------------
present.'' 595 F.2d 264, 270 (5th Cir. 1979).

    Basco v. Machin, 514 F.3d 1177, 1182 (11th Cir. 2008). Thus, the 
utility of hearsay evidence before an administrative tribunal is 
limited by its reliability and probative value. Divining the correct 
use of hearsay evidence requires a balancing of four factors: (1) 
whether the out-of-court declarant was not biased and had no interest 
in the outcome of the case; (2) whether the opposing party could have 
obtained the information contained in the hearsay before the hearing 
and could have subpoenaed the declarant; (3) whether the information 
was inconsistent on its face; and (4) whether the information has been 
recognized by the courts as inherently reliable. Id. at 1182; J.A.M. 
Builders v. Herman, 233 F.3d 1350, 1354 (11th Cir. 2000).
    Applying the J.A.M. Builders factors to this testimony, while true 
enough that the Respondent arguably could have secured TE's live 
testimony through process, the Government (the proponent of the 
evidence) has presented no predicate upon which a reasonable finding 
could be made that would justify consideration of this evidence in 
support of a finding of substantial evidence. Although there is no 
direct evidence of bias and TE was not then under investigation, the 
interview took place in a law enforcement setting where Teagle had 
suspicions that TE may have been dealing drugs. Tr. 416-17. There was 
insufficient other evidence to determine whether the information 
provided in the TE interview was consistent on its face, and not only 
has this form of information never been recognized by the courts as 
inherently reliable, but TE admitted that his memory of events during 
that time is less than stellar, or in his words, ``my mind's erased 
where I was on that junk.'' Without the live testimony of TE, there 
would not be a way to test meaningfully TE's residual memory capacity. 
The Government elected to offer TE's statements as hearsay at its own 
peril, and such testimony cannot be used to support a finding of 
substantial evidence in these proceedings.
    The Government also presented the testimony of Sherif Guindi, Esq., 
a former Assistant Commonwealth Attorney (ACA) for the county of 
Harlan, Kentucky. Tr. 345, 399. Like Teagle, Guindi recalled that the 
attention of law enforcement was drawn to TPA because law enforcement 
officials had discovered prescription bottles authorized by the 
Respondent and her partner at the scene of narcotic enforcement 
activities (such as arrests, seizures, stings, and searches). Tr. 355. 
Mr. Guindi was involved in prosecuting the Respondent and negotiated, 
at least in part, her plea bargain. Tr. 345, 373-75, 379. Guindi, whose 
testimony was sufficiently detailed, consistent, and plausible to be 
credited, provided some level of background regarding the Respondent's 
procedural odyssey through the Harlan County state criminal case. Tr. 
345-46, 371-81. As part of the plea agreement, the Respondent agreed to 
forfeit $250,000 that she had posted to secure her release on bond,\15\ 
and she donated $250,000 to the Harlan Fiscal Court for use in drug 
eradication, rehabilitation, or prevention.\16\ Tr. 345-46, 371-75; see 
also Stipulations B-C, E-G.
---------------------------------------------------------------------------

    \15\ This sum represented, at least in the state's theory, ill-
gotten gains (85% of which went to the Harlan County Sheriff's 
Department, 15% of which went to the Harlan County Commonwealth 
Attorney's Office).
    \16\ The circumstances surrounding the Respondent's Harlan 
County guilty plea, including the Respondent's discomfiture 
regarding the propriety of the forfeitures, are well beyond the 
jurisdiction of this forum, have played no part in this recommended 
decision, and can play no part in the Agency decision in this 
matter.
---------------------------------------------------------------------------

    Not unlike its presentation of Deputy Teagle's testimony, the 
Government elicited information from former ACA Guindi relative to 
interviews that he

[[Page 47756]]

conducted of AW \17\ and TG,\18\ who, like TE, were purportedly former 
patients of TPA while the Respondent was a partner there. An affidavit 
executed by AW was offered by the Government and received into 
evidence.\19\ Gov't Ex. 17; Tr. 364-67. The Respondent, through 
counsel, registered timely, cogent (ultimately well-founded) objections 
to the Government's approach in this regard. Tr. 347, 360, 362-64, 367.
---------------------------------------------------------------------------

    \17\ In the transcript prepared in connection with her 
statements to Mr. Guindi, it was clear that at the time she made her 
statements to him, AW was incarcerated based on charges related to 
the investigation of TPA. Gov't Ex. 19 at 1. AW admitted that she 
was addicted to drugs during the time she was being seen at TPA and 
``was under the influence most of the time [she] was in [at the 
practice].'' Id. at 6. AW's interview provided information that, if 
credited, could arguably have established that the Respondent knew 
or should have known that AW always had fresh needle marks on her 
arms from intravenously injecting her pain medications before office 
visits, had prior scarring from same, and wore sleeveless shirts 
during warm weather so that these obvious signs of drug abuse were 
clearly displayed. Furthermore, her interview also could have 
supported the proposition that AW was not physically examined by the 
Respondent prior to receiving controlled substance prescriptions, 
and that she was never questioned by the Respondent about selling 
her controlled prescriptions or her reasons for travelling such a 
long distance each month for medical care. Additionally, the 
interview results would have arguably shown that AW recognized other 
patients at TPA as residents of her home town in Harlan County, and 
that some of her neighbors/fellow patients exhibited signs and 
behaviors of intoxication that also should have been apparent to the 
Respondent and other TPA staff. Tr. 358-60, 364, 385; Gov't Ex. 19.
    \18\ If credited, TG's interview could have provided evidence 
that he and other Harlan County residents travelled a long distance 
together to obtain controlled substances from the Respondent to 
abuse or sell back in Harlan, that the Respondent prescribed 
controlled substances to TG for three years, that she increased his 
dosage at least once for no reason, and that the practice habits at 
TPA allowed TG to abuse the controlled substances that he obtained 
there. Tr. 368-71.
    \19\ The affidavit was generated by the prosecution in the state 
criminal case in opposition to a defense motion to dismiss. Tr. 378-
83
---------------------------------------------------------------------------

    An application of the J.A.M. Builders factors to the interviews of 
AW and TG militate against affording it weight. Although the 
Respondent's counsel conceded that he neither made an attempt to 
subpoena AW, nor expended efforts to discover whether she still 
remained in jail, Tr. 347-48, (and while not on the record, the same 
circumstance may be assumed as true with regard to TG), each of the 
remaining factors favor exclusion of the evidence regarding Guindi's 
interviews. Regarding AW's possible bias, the transcript reveals that 
at the time of the interview AW was serving prison time after flunking 
a drug diversion rehabilitation program. Tr. 351-52. On the issue of 
whether AW could have been influenced by a desire to reduce her 
criminal liability based on her cooperation, Mr. Guindi was not 
particularly helpful. Guindi testified that he did not think AW was in 
a position to be placed back into the (rehab) program that she had 
washed out of, but that he did not know whether cooperation was a 
condition of the pretrial agreement that resulted in her diversion to 
Drug Court.\20\ Tr. 353-54, 356. It is, likewise, not insignificant 
that during her interview, AW volunteered that she was inflicted with a 
back issue that conceivably could have justified the proper utilization 
of pain medications. Tr. 357.
---------------------------------------------------------------------------

    \20\ Although Mr. Guindi represented that this sort of 
information was easily obtainable at the time through his mobile 
smart phone or by quick telephone request made to the Harlan County 
Clerk's Office to fax over AW's plea sheet, neither the Government 
nor the Respondent entreated him to make such an inquiry. Tr. 354, 
356-57.
---------------------------------------------------------------------------

    No foundation was laid by the Government regarding the absence of 
bias from AW or TG. The information provided in the interviews could 
not be tested for consistency because such testimony was not 
corroborated by other evidence of record. Furthermore, there is no case 
law or other authority recognizing this variety of evidence as 
inherently reliable. Simply put, the Government, as the proponent of 
the evidence, did not lay a foundation sufficient to permit 
consideration of the AW/TG interviews to support substantial evidence, 
or even sufficient for this tribunal to make findings relevant to the 
issue that could be defended at any level of appeal. AW acknowledged 
her intoxication during the events that were the subject of the 
interview, and presented in this third-hand fashion, there is no way 
that her recollection could be meaningfully explored. TG, who at the 
tail end of his interview acknowledged that he saw the Respondent 
ninety percent of the time, overwhelmingly used the pronoun ``he'' 
throughout the transcript to describe the physician who treated him at 
TPA, referring to the Respondent's partner, Dr. Vilvarajah. Gov't Ex. 
21 at 17. Regarding his state of mind during the events that he was 
recounting, TG revealed that ``[a]ll you think about is the medicine, 
you know, where your next little bit's going to come from.'' Gov't Ex. 
21 at 17-18. As discussed, supra, the Government opted to elicit this 
information in this fashion rather than to produce the witnesses at the 
hearing or at least lay an adequate foundation for the meaningful 
reception of their testimony, and made this election at its own peril. 
Without more of a foundation, such as a way to gauge their degree of 
bias, potential interest, or the consistency of their 
recollections,\21\ the reliability of the testimony regarding the AW/TG 
interviews falls short of a level where they can be considered 
gainfully, or contribute to a determination supported by substantial 
evidence.
---------------------------------------------------------------------------

    \21\ Further confounding the usefulness of AW's statements, 
Guindi testified that AW told him that she was impaired by the 
effects of the narcotic pain drugs most of the time that she visited 
the Respondent's practice and that the drugs interfered with her 
recollection abilities. Tr. 384-85. The same was reflected in the 
transcript of AW's interview. Gov't Ex. 19 at 6.
---------------------------------------------------------------------------

    Consistent with Mr. Guindi's testimony (as well as mutually-
stipulated facts), the Government submitted into evidence documents 
reflecting the transactions of the Respondent's conviction and 
sentencing in Harlan County, Kentucky. Among the documents was the 
Commonwealth's Offer on a Plea of Guilty, which indicated that Count I 
of the indictment for engaging in organized crime, a felony, was 
amended to facilitation to trafficking in a controlled substance, a 
misdemeanor. Gov't Ex. 7 at 1; see Stipulation B. The state's offer of 
a reduced charge was conditioned on the Respondent's agreement to 
refrain from prescribing any medications to residents of Harlan County, 
and was based, at least in part, on the Respondent's having excluded at 
least 251 patients from her pain management practice for ``misusing 
prescription drugs,'' and the state's conclusion that the Respondent 
was ``instrumental'' in prosecuting 16 patients for ``misusing printed 
prescription pads and forging signatures.'' Gov't Ex. 7 at 2. The 
recommended sentence part of the plea offer, which was ultimately 
ratified by the state district court,\22\ proposed that the court 
dismiss Counts II through V; that the court dismiss the subsequent 
indictment for wanton murder, see Stipulation E; \23\ that the 
Respondent receive eleven months imprisonment in the county jail, 
probated to four months; and that the Respondent forfeit $500,000 \24\ 
to the state. Gov't Ex. 7 at 2. The Government also introduced into 
evidence the Order of Probation, dated January 11, 2010, pursuant to 
the plea agreement and conviction, that ordered, inter alia, the 
unsupervised probation of the Respondent and the proscription from 
prescribing controlled substances

[[Page 47757]]

to residents of Harlan County. Gov't Ex. 11 at 2.
---------------------------------------------------------------------------

    \22\ Gov't Ex. 10 (Judgment and Sentence on Plea of Guilty); see 
Gov't Ex. 9 (Guilty Plea).
    \23\ The indictment was ordered dismissed by the Harlan Circuit 
Court on February 2, 2010. Gov't Ex. 12.
    \24\ Half of the $500,000 sum was forfeited to the state as 
illegal drug trafficking proceeds, and the remaining half was 
donated to the Harlan Fiscal Court for use in youth activities and 
facilities aimed at preventing drug abuse. Gov't Ex. 10 at 5.
---------------------------------------------------------------------------

    During her testimony at her DEA administrative hearing, the 
Respondent made it clear that even though she entered a guilty plea on 
the criminal charge, she has always maintained, and still does 
unwaveringly maintain, her innocence on the charges, and believes her 
acts were ``unintentional.'' Tr. 922-24, 1038; see also Stipulation F.

State Medical Board Proceedings

    The evidence of record unequivocally establishes that the Tennessee 
Medical Board adjudicated a disciplinary case based on the Respondent's 
Kentucky state court criminal conviction. Following an initial summary 
suspension effected on January 29, 2010, a hearing was conducted by the 
Board. A final order issued by the Board on March 22, 2010, 
acknowledged the Respondent's state court misdemeanor conviction for 
facilitation to trafficking in a controlled substance in the first 
degree, but afforded her the benefit of retaining her medical 
privileges, subject to several conditions.\25\ Gov't Exs. 14, 15; 
Stipulations I, J.
---------------------------------------------------------------------------

    \25\ The specified probation conditions include: (1) undergoing 
an evaluation by the Center for Personalized Education; (2) 
completing a two-day course on medical ethics and a three-day course 
of medical recordkeeping; and (3) obtaining practice monitoring for 
five years. During the practice monitoring, at least ten percent of 
all Respondent's patient medical files must be reviewed each month 
and Respondent must receive training in the treatment of chronic or 
intractable pain. The practice monitor must also provide the Medical 
Board with reports every three months that include the Respondent's: 
(1) compliance with the practice monitor's recommendations; (2) 
completion of education programs; (3) prescribing practices; (4) 
medical recordkeeping; and (5) treatment of chronic or intractable 
pain. Stipulation J.
---------------------------------------------------------------------------

The Respondent's Prescribing Practices

    The Government's investigation regarding the COR application \26\ 
at the center of these administrative proceedings was presented 
primarily through the testimony of Rhonda Phillips and James Stevens, 
DEA Diversion Investigators (DIs) stationed in Nashville, Tennessee.
---------------------------------------------------------------------------

    \26\ A copy of the current application, which was submitted 
online, was received into evidence. See Gov't Ex. 2.
---------------------------------------------------------------------------

The Diversion Investigators

    Notwithstanding the parties' stipulations regarding the procedural 
milestones associated with the Respondent's state criminal case, DI 
Phillips, a veteran of over twenty-three years as a DI, outlined 
numerous court-related documents associated with the misdemeanor 
conviction. Gov't Exs. 3-7, 9-12; Resp't Ex. 31. DI Phillips also 
testified that the Respondent surrendered a previous COR \27\ through 
the execution of a Form DEA-104 (Form 104) signed by the Respondent and 
conveyed to Phillips by facsimile through her counsel. Tr. 672-74; 
Gov't Ex. 13. DI Phillips recalled that she prepared the surrender form 
upon telephonic consultation with the Respondent's counsel, explained 
that the surrender would be designated as ``for cause,'' and received 
an executed facsimile copy the same day. Tr. 672-74. Above the 
Respondent's signature, the Form 104 has a checked box adjacent to 
boilerplate language in the form reading, in pertinent part:
---------------------------------------------------------------------------

    \27\ A copy of the Respondent's prior COR was received into the 
record. See Gov't Ex. 1.

    In view of my alleged failure to comply with the Federal 
requirements pertaining to controlled substances, and as an 
indication of my good faith in desiring to remedy any incorrect or 
unlawful practices on my part[,] I hereby voluntarily surrender my 
[COR], unused order forms, and all my controlled substances . . . as 
evidence of my agreement to relinquish my privilege to handle 
controlled substances . . . . Further, I agree and consent that this 
document shall be authority for the Administrator of the Drug 
Enforcement Administration to terminate and revoke my registration 
without an order to show cause, a hearing, or any other proceedings 
---------------------------------------------------------------------------
. . . .

Gov't Ex. 13. Immediately above the afore-quoted standard surrender 
language appear the words: ``I am surrendering this privilege only as a 
condition of bond, and I am not making any admissions as to any 
wrongdoing.'' Id. The Respondent's counsel and Phillips had discussions 
surrounding the execution of the Form 104 wherein the former explained 
to the latter that the Respondent needed to effect a COR surrender as a 
condition of her bond release on the state criminal court matter. Tr. 
810-11. Phillips explained unequivocally that a new application and 
administrative show cause process must precede the Respondent's 
reacquisition of her registration privileges. Tr. 811-12
    DI Phillips also testified that, as part of her investigation into 
the current application, she obtained \28\ and reviewed some charts 
from TPA \29\ that were identified to her as relating to the 
Respondent's patients from the custody of the Tennessee Medical Board's 
Office of General Counsel (OGC),\30\ and three additional charts \31\ 
from the Harlan County, Kentucky Commonwealth's Attorney's Office 
(KCA). Tr. 688-94, 700. Ten files from the universe of files retrieved 
from OGC \32\ and KCA were selected at random and provided to a medical 
consultant, Dr. Stephen Loyd, M.D., for analysis. Tr. 825.
---------------------------------------------------------------------------

    \28\ Phillips utilized an administrative subpoena to acquire the 
patient charts. Tr. 424.
    \29\ Phillips credibly testified that, through differences in 
handwriting, she was able to distinguish the Respondent's notes from 
those of her partner at TPA, Dr. Vilvarajah. Tr. 704-05. The 
Respondent, who heard DI Phillips' testimony in which she 
distinguished the Respondent's hand from Dr. Vilvarajah's, testified 
that Phillips' interpretations were accurate. Tr. 982-83.
    \30\ According to DI Phillips, all but two of the charts 
selected bore a certification of accuracy from the Respondent. Tr. 
690-92, 826-28.
    \31\ Gov't Exs. 26, 45, 51.
    \32\ DI Stevens testified that while two boxes of charts were 
retrieved from OGC, the two DIs reviewed only one box of charts, and 
that one box was chosen at whim. Tr. 514-15.
---------------------------------------------------------------------------

    Additionally, over a well-reasoned, timely objection interposed by 
the Respondent's counsel, Tr. 793-99, DI Phillips testified concerning 
her interview of CM,\33\ a former patient of TPA that was treated by 
the Respondent,\34\ Tr. 799-808. Applying the J.A.M. Builders \35\ 
factors to this evidence, CM's hearsay statements, conveyed through DI 
Phillips, cannot be considered for any purpose in these proceedings. 
While the Respondent's counsel arguably could have subpoenaed the 
witness, the Government has tendered no information as to how lack of 
bias could be assessed or how to gauge the consistency of the 
information, and this is not the type of information that has been 
recognized by the courts as inherently reliable. Thus, DI Phillips' 
account of CM's statements have not been considered for any purpose in 
this recommended decision and should not be used in support of any 
finding in the adjudication of the present application.
---------------------------------------------------------------------------

    \33\ DI Phillips testified that the interview was not recorded 
by video or audiotape. Tr. 831. However, Phillips testified that she 
did prepare written notes regarding the interview, and at the 
hearing the Government acquiesced to a request made by Respondent's 
counsel for access to those notes. Tr. 833.
    \34\ Had CM's statements to Phillips been deemed sufficiently 
reliable to have been considered, they would have indicated that she 
was treated by TPA for four years, and that the Respondent and Dr. 
Vilvarajah did not take her off controlled substances even after she 
informed them that she was pregnant. Tr. 802-07. Ironically, in 
light of the fact that neither of the two experts who testified at 
the hearing was asked to render an opinion on the relative merits of 
prescribing controlled substances to pregnant patients (or 
continuing to do so), on the present record, the usefulness of CM's 
statements to Phillips regarding this issue (even if they had been 
sufficiently reliable to be considered) would have been dubious.
    \35\ 233 F.3d 1350, 1354 (2000).
---------------------------------------------------------------------------

    DI Stevens testified that while he has been a DI for approximately 
three years, he is also a retired police lieutenant with over thirty 
years of experience, twenty-four of which were spent assigned to cases 
involving narcotics, pharmaceutical drugs, and illegal

[[Page 47758]]

controlled substances. Tr. 418-19. Like DI Phillips, Stevens testified 
to reviewing patient charts in connection with the Respondent's case to 
detect indicators of abuse or diversion.\36\ Tr. 421. The testimonies 
presented by DI Stevens and DI Phillips were sufficiently detailed, 
consistent, and plausible to be deemed credible in these proceedings.
---------------------------------------------------------------------------

    \36\ Stevens credibly testified that, through differences in 
handwriting, he was able to distinguish the Respondent's notes from 
those of her partner at TPA, Dr. Vilvarajah. Tr. 428. The Respondent 
confirmed that DI Stevens' interpretations were able. Tr. 982-83.
---------------------------------------------------------------------------

The Government's Expert

    The Government presented testimony from, and a written report \37\ 
prepared by, Dr. Stephen Loyd, M.D.\38\ Dr. Loyd testified that: (1) he 
holds a board certification in general internal medicine; (2) he serves 
as the Associate Chief of Staff for Education at the Veterans Affairs 
Medical Center (VAMC) in Johnson City, Tennessee; and (3) he is an 
associate professor of internal medicine at the James H. Quillen 
College of Medicine at East Tennessee State University.\39\ Tr. 11, 13. 
Dr. Loyd testified that he practices medicine at VAMC in both in-
patient and out-patient capacities, teaches medical school courses at 
all levels, trains medical residents, and has been recognized as an 
expert in other litigation forums. Tr. 14-16, 231-32. He testified that 
although he handles chronic pain patients, those cases comprise less 
than ten percent of his patient-base.\40\ Tr. 16. Without objection, 
Dr. Loyd was received as an expert in the field of internal medicine 
with an emphasis on proper controlled substance prescribing 
practices.\41\ Tr. 14-16.
---------------------------------------------------------------------------

    \37\ Dr. Loyd's written report was received into evidence. See 
Gov't Ex. 57.
    \38\ Dr. Loyd testified that the Government was compensating him 
at a rate of $300.00 per hour for his expertise and testimony. Tr. 
232.
    \39\ Dr. Loyd testified that his duties include both direct 
patient care and teaching responsibilities. Tr. 218-19, 223-24.
    \40\ Interestingly, although Dr. Loyd testified that while he 
treats chronic pain patients, his practice group also refers 
patients requiring more specialized care out to a medical group that 
specializes in pain management. Tr. 220-23. In response to a 
question seeking clarification about his qualifications, Dr. Loyd 
stated ``If you're talking about the medical specialty of pain 
management, no, I did not practice that. Did I take care of pain 
patients? Absolutely.'' Tr. 221.
    \41\ Dr. Loyd's CV was received into evidence. See Gov't Ex. 55.
---------------------------------------------------------------------------

    Dr. Loyd testified that, when treating patients afflicted with 
chronic pain, physicians follow a protocol, the first step of which is 
to identify the chief complaint, or in other words, the patient's own 
understanding of why they are seeking medical intervention. Tr. 17-19. 
The second step of the protocol is to ascertain the patient's history 
regarding the genesis of the chief complaint. Tr. 19-20. A differential 
diagnosis, that is a list of possible etiologies for the pain 
symptom(s), comes next, with a review of bodily systems and physical 
examination, followed by an assessment and treatment plan prepared 
based on the information acquired by the foregoing process. Tr. 20-24. 
According to Dr. Loyd, the nature and extent of the physical exam can 
be affected by the nature of the chief complaint and can be of a more 
limited nature on subsequent visits. Tr. 23-24.
    According to Dr. Loyd, in treating chronic pain, consistent with 
the guidance set forth in the Pain Control Ladder (PCL) developed by 
the World Health Organization (WHO), he commences chronic pain 
treatment with the least addictive medication, which is generally a 
non-controlled, non-steroidal, anti-inflammatory drug (NSAID). Tr. 25-
28. If that level of medication has not proven effective, Dr. Loyd 
testified that he would ``take it up a notch'' to the second rung of 
the PCL, a low-potency opioid analgesic, reserving ``the very powerful 
narcotics, such as oxycodone, OxyContin, [or] Duragesic'' for ``severe 
chronic pain.'' Tr. 27.
    Dr. Loyd also testified that a physician prescribing controlled 
substances has an obligation to probe for signs of patient addiction, 
and that this is a process that normally commences with questions 
deployed while eliciting the patient's history and are designed to 
flesh out areas of potential concern. Tr. 28-31. Dr. Loyd opined that 
the questioning becomes more in depth when he is treating a chronic 
pain case where the utilization of controlled-substance medication may 
be of longer duration, and that there are identifiable ``red flags'' of 
diversion risk that a treating physician should look for. Tr. 31.
    A ``crescendo pattern of drug use,'' defined in his testimony as an 
increase ``in the frequency and strength of the drug over time,'' is a 
phenomenon that Loyd identified as a diversion red flag. Tr. 31-32. 
Dramatic, overstated, but vague pain complaints, as well as a patient 
seeking a specific medication by name \42\ are other red flags 
described by Dr. Loyd. Tr. 33-34. Likewise, patient reports of lost or 
stolen prescriptions and early requests for refills were also 
characterized by Loyd as red flags, Tr. 49, as was evidence that a 
patient has declined to avail himself of treatment recommendations that 
are not related to controlled substances (e.g., a patient who ignores a 
recommendation to obtain an MRI or participate in physical therapy), 
Tr. 59-60. In Dr. Loyd's opinion, monitoring to ensure that patients 
are not procuring controlled substances from multiple physicians and/or 
pharmacies, or as Dr. Loyd characterized it, ``doctor shopping'' and 
``pharmacy shopping,'' is also an important feature of controlled 
substance prescribing. Tr. 35-36. In that regard, Dr. Loyd testified 
that Tennessee has had an online prescription monitoring program 
available for practitioner query since 2008. Tr. 49.
---------------------------------------------------------------------------

    \42\ Dr. Loyd acknowledged that his utilization of this 
phenomenon as a red flag is tempered by the reality that some 
patients, through experience, can legitimately apprise a treating 
physician regarding the success of particular medications used in 
the past in a way that can appropriately inform the doctor's 
prescribing decisions. Tr. 253.
---------------------------------------------------------------------------

    Dr. Loyd testified that the practice of directing random urine drug 
screens (UDS) is a tool that should be utilized when prescribing 
controlled substances. Tr. 34-35. According to Loyd, through the use of 
UDSs, practitioners can evaluate whether pain patients are taking the 
medication that has been prescribed to them, which serves the dual 
purposes of assisting the physician in determining how effective a 
given drug regimen is in addressing pain symptoms and monitoring for 
diversion. Tr. 35. Patients who screen positive for illicit substances 
were described by Dr. Loyd as ``very much at risk for suffering from 
addiction'' and need careful monitoring. Tr. 36. Dr. Loyd testified 
that although a physician could prescribe to a patient who initially 
presents with positive UDS results for illicit substances (e.g., 
marijuana or cocaine), evidence of continued use would be grounds to 
discontinue controlled substance pain medication. Id. Dr. Loyd 
testified that he would be reluctant to prescribe a controlled 
substance before receiving results from an initial UDS administered to 
a patient upon intake, but that he would possibly go ahead and issue 
controlled substances in a case where a patient presented with a cancer 
diagnosis. Tr. 37.
    Loyd testified that, in his opinion, the accepted medical practice 
is always to address a UDS anomaly with what he characterized as a 
``confrontation'' with the patient to investigate the basis. Tr. 42-44. 
While Dr. Loyd agreed that a single UDS anomaly was not universally a 
reason to summarily discharge a patient from his practice, even a 
single

[[Page 47759]]

inconsistent UDS requires exploration of the issue. Tr. 251. In 
describing the standards at his own practice, Dr. Loyd stated that ``at 
the very least, when you had [a UDS] that was inconsistent, you would 
investigate.'' Id. Thus, a suspicious UDS requires a patient 
confrontation. Furthermore, such a confrontation and its results must 
be documented in the patient chart. Dr. Loyd put it this way:

    If you didn't document it, you didn't do it. That's the 
standard. So I may have had a long discussion with my patient and 
[he] may have told me [he] didn't take [his] medication because [he 
was] hospitalized and [he] didn't take it for two weeks while [he 
was] on a ventilator. Very well may have been the case. If I didn't 
document it in my chart, then it didn't happen. That is the 
standard.

Tr. 44 (emphasis supplied); see also id. at 50.
    Interestingly, Dr. Loyd testified that he is unaware of any 
recognized standard regarding the frequency with which UDSs should be 
administered, but in his practice, he directs one at intake, and 
another upon his perception of a red flag that emerges during the 
course of treatment. Tr. 48-49.
    Dr. Loyd's presentation regarding the accepted standard set within 
the state of Tennessee for controlled substance prescribing was not 
without rough spots. The witness initially indicated that there was no 
acceptable medical practice within the state that he knew of that would 
provide guidance on how to handle a UDS anomaly. Tr. 39-40. He then 
retreated from this (otherwise seemingly unequivocal) position by 
indicating that there was an ``[a]ccepted medical practice,'' for that 
issue and others, as described above. Tr. 42. Loyd also acknowledged 
that he was not aware of any state standard for the definition of 
chronic pain, Tr. 17, 319-20, and conceded that he was unaware that any 
standards for prescribing within the state were memorialized in any 
formal way, Tr. 28. As discussed in some detail, infra, there is 
guidance in Tennessee regarding the utilization and monitoring of pain 
medication that the Government's expert was unaware of and woefully 
unprepared to address. In a similar vein, Dr. Loyd conceded that he had 
no familiarity with the Federation of State Medical Boards' Model 
Policy for the Use of Controlled Substances for the Treatment of Pain, 
2004 (Model Policy), a widely recognized guidance tool utilized by 
physicians and legislatures nationwide. Tr. 137.
    It was also interesting that Dr. Loyd did not outline pain 
management standards existent within the state of Tennessee, but 
instead styled the parameters of his critical analysis as ``accepted 
medical practice'' that he learned ``in [his] training.'' Tr. 42. While 
undoubtedly true that there is an established requirement in legal 
precedent to tailor analysis of medical practice to standards existent 
within a state law, Volkman v. DEA, 567 F.3d 215, 223 (6th Cir. 2009) 
(citing Gonzales v. Oregon, 546 U.S. 243, 272, 274 (2006)), the Agency 
has recently accepted the propriety of ``measur[ing] the usual course 
of professional practice under [the CSA and the regulations] with 
reference to generally recognized and accepted medical practices.'' 
Jacobo Dreszer, M.D., 76 Fed. Reg. 19386 (2011) (quoting United States 
v. Smith, 573 F.3d 639, 647-48 (8th Cir. 2009) (internal quotation 
marks omitted) (citing United States v. Merrill, 513 F.3d 1293, 1306 
(11th Cir. 2008)).
    A written report of sorts that was prepared by Dr. Loyd in 
connection with his review of selected patient charts from the 
Respondent's practice was also received into evidence. Gov't Ex. 57. As 
a preliminary matter, it is worthy of note that the format of Dr. 
Loyd's report was confusing and singularly unhelpful. While a critical 
objective of securing expert assistance is to aid the trier of fact in 
analyzing and processing material beyond the ken of the ordinary 
citizen, Dr. Loyd's report is untitled, unsigned, disorganized, 
unfocused, and written in a manner that bespeaks a free association 
narration of documents and other items provided to him by the 
Government in no particular order. A principal reason for the 
difficulty in the structure (or lack of it) employed by the report 
undoubtedly comes from the manner of its genesis. During his testimony, 
Dr. Loyd explained that the document that was characterized as his 
``report'' was actually a collection of patient chart review summaries 
that he provided to the lead diversion investigator (DI) on the case 
``to see what [DEA] thought of my work.'' Tr. 53-54. Loyd acknowledged 
that clerical mistakes are present in the report, owing in his 
estimation, to his own limited typing skills and misunderstanding of 
the purpose to which the pages he provided to DEA would be utilized. 
Id. Although undoubtedly true that enhanced communication between 
expert and proponent could likely have yielded a more refined written 
product, the submitted pages demonstrated a significant level of 
analysis regarding the reviewed patient charts.
    Its weaknesses notwithstanding, Dr. Loyd's overall presentation as 
an expert was sufficiently clear, cogent, and well-reasoned to be 
relied upon in this recommended decision.
    The Respondent's Expert
    The Respondent presented the testimony of Dr. Thomas Miller, 
M.D.,\43\ a board-certified anesthesiologist who is also a diplomate of 
the American Academy of Pain Management.\44\ Tr. 541-41. Dr. Miller, 
who specializes in pain management and has practiced in that area since 
1978, was accepted without objection as an expert in the fields of 
anesthesiology and pain management. Tr. 543.
---------------------------------------------------------------------------

    \43\ Dr. Miller testified that he was being compensated by the 
Respondent at a rate of $500 per hour for his expertise and 
testimony. Tr. 544.
    \44\ Dr. Miller's CV was received in evidence. See Resp't Ex. 
30.
---------------------------------------------------------------------------

    While, in contrast to Dr. Loyd, Dr. Miller expressed some level of 
awareness that the Federation of State Medical Boards had adopted a 
Model Policy, he like Dr. Loyd, had no awareness of any pain medication 
guidance set forth in state statutes. Tr. 591. In some contrast to Dr. 
Loyd, however, Dr. Miller testified that pain management is the 
principal focus of his practice. Tr. 544-46. In the course of his 
testimony, Dr. Miller outlined the steps ordinarily taken regarding 
chronic pain patient care at intake. During the intake process, Dr. 
Miller, who does not accept walk-in patients, has each new patient 
complete pain symptom forms, directs that the patient bring in any 
current medication(s), explains the parameters and significance of the 
pain medication contract between doctor and patient, takes vital signs, 
directs a UDS, conducts a full physical examination, and outlines a 
treatment plan. Tr. 545-48. Regarding the appropriate use of an intake 
UDS report that reflects the presence of illicit drugs, Dr. Miller 
indicated that while he would not automatically refuse to treat every 
patient who registers positive for illegal drugs, there would be much 
discussion with such a patient on the issue and that he would schedule 
an additional urinalysis and explain to the prospective patient that he 
or she must be clean from illicit drugs prior to treatment. Tr. 549-52. 
According to Miller, ``[T]here's a lot of interaction going on with 
that patient, but I simply don't write controlled substances for 
somebody who has an illicit substance in their urine.'' Tr. 552 
(emphasis supplied). When pressed on the issue later in his testimony, 
Dr. Miller was emphatic that he would not continue to treat a patient 
who demonstrated illicit drug use on more than one occasion, and 
indicated that doing so would be

[[Page 47760]]

problematic. Tr. 613-14. Dr. Miller testified that he believes that he 
tests for drugs more often than other pain management specialists 
because, in his words, ``I'm very, very keyed in on trying to identify 
diverters.'' Tr. 556. It is Dr. Miller's practice to inquire of the 
last time the patient took a dose of his or her prescribed medication 
prior to the administration of a UDS. Tr. 563. Inasmuch as Dr. Miller 
is aware of the expected length of time medications will remain in the 
body and the patient has advised him of the most recent dose taken, 
there is little room for ambiguity in this evolution regarding the 
implications of his patients' UDS results. Tr. 563. When a UDS report 
in Dr. Miller's practice reflects the absence of a controlled substance 
that his pre-test conversation reveals should have been in the 
patient's system, his reaction is unequivocal; he stated: ``[T]hat's a 
drug diverter, and I will then alert law enforcement.'' Id. Miller also 
explained that where a patient takes medicine in a way that is 
inconsistent with the terms of the pain medication contract (even with 
an excuse), that patient is directly told that such a deviation will 
not be tolerated in the future. Tr. 566. Dr. Miller also endorsed the 
importance of documenting UDS results, stating as unequivocally as Dr. 
Loyd, that ``if there's no documentation, then I assume it wasn't 
done.'' Tr. 593 (emphasis supplied). Furthermore, according to Dr. 
Miller, ``[i]gnoring [UDS] results would be a problem.'' Tr. 616. Much 
as the two experts agreed on the issue of the importance of 
documentation, Miller's testimony concerning the handling of a UDS 
anomaly revealed a consonant viewpoint with that of Dr. Loyd. While not 
referring to the evolution as a ``confrontation,'' Dr. Miller indicated 
that upon a UDS irregularity, he would invariably discuss the 
discrepancy with the patient and document the results of that 
discussion. Tr. 623-25.
    Dr. Miller also testified that, in his practice, reviewing a new 
patient's prior medical records is a condition precedent to rendering 
opioid pain management treatment, and that he has insisted on the 
expeditious acquisition of such records even where the patient's former 
doctor is hundreds of miles away. Tr. 587-88. Miller observed that, 
although the charts he reviewed for the Respondent reflected that while 
the pain management contracts employed at TPA included a provision 
requiring that past medical records be obtained, ``they just didn't 
follow through with it all the time.'' Tr. 588. Miller was clear in 
stating that he would not rely only on the word of his patient 
regarding the pain medications and dosages prescribed by former 
physicians. Tr. 604.
    Dr. Miller testified that, at the Respondent's request, he reviewed 
and evaluated thirty-two of her patient files that were provided to DEA 
through the Tennessee Medical Board and the Commonwealth's Attorney's 
Office.\45\ Tr. 567-70. In that regard, Miller testified that in his 
expert opinion there were both positive and negative features about the 
Respondent's patient files. Tr. 570. On the positive side, the records 
reflected histories and physical examinations on intake, as well as 
indicators that UDS testing was being performed at the practice. Tr. 
571. On the negative side, when asked about the presence of prior 
medical records and imaging reports, Miller could say only that these 
were ``sometimes'' present in the charts. Id. Dr. Miller indicated that 
the type of UDS that TPA employed to test for opiates did not measure 
the presence of oxycodone. Tr. 575-76. Additionally, Miller faulted the 
Respondent's practice for unevenness in obtaining referral information 
from the patients, and for ``poor documentation'' on follow up visits 
regarding areas such as activities of daily living and aberrant 
behavior with respect to medication compliance. Tr. 576-78. 
Furthermore, Dr. Miller criticized the Respondent's practice regarding 
how well the doctors and staff followed up on diversion red flags once 
they were enountered. Miller put it this way:
---------------------------------------------------------------------------

    \45\ The patient charts that were offered and received into 
evidence represent a subset of this group.

    Sometimes they had a problem that they recognized some substance 
abuser or that a person had a substance abuse problem, and they 
recognized that they needed to send [the patient] to rehab, but 
there's no evidence that the patient actually went to rehab, and 
---------------------------------------------------------------------------
they continued prescribing.

Tr. 578.
    Based upon his review of the Respondent's patient charts, Dr. 
Miller also concluded that that one or two patients among those he 
analyzed were prescribed methadone and OxyContin together, a 
combination of medications that in Miller's view is unwise. Tr. 584-85, 
610-11.
    However, Dr. Miller was also of the view that the deficiencies that 
the Respondent demonstrated regarding her pain management practice were 
correctable with proper training. Tr. 579-80. Although Dr. Miller 
testified that the Respondent advised him that she no longer intended 
to practice pain management,\46\ he also testified that the Respondent 
visited him for two days at his office and they spent that time 
reviewing correct controlled medication prescribing practices and 
monitoring. Tr. 581-83. Miller indicated his willingness to serve as a 
``practice monitor'' for the Respondent in the same manner as he has 
performed this function in the past for nurse practitioners. Tr. 590-
91.
---------------------------------------------------------------------------

    \46\ Tr. 615. However, this view is in some conflict with the 
Respondent's own testimony, wherein she seemed to convey a potential 
interest to resume practice in the field of pain management when 
explaining reasons why she wished that DEA would grant her COR 
application. Tr. 993-94.
---------------------------------------------------------------------------

    Dr. Miller's testimony, while not without its weaknesses, was 
sufficiently consistent, comprehensive, and founded on material in the 
evidence of record to be relied upon in the adjudication of this 
application. Although there were no dramatic differences of significant 
consequence between his expert opinions and those of Dr. Loyd that 
impact on consequential issues here, to the extent that conflicts 
exist, Dr. Miller's depth and breadth of experience in the area of pain 
management were clearly more comprehensive than that of Dr. Loyd.

The Respondent's Testimony

    The Respondent testified that she graduated medical school in Haiti 
in 1977, acquired subspecialties of pain medicine and anesthesiology, 
and amassed what can fairly be characterized as an impressive level of 
experience in those fields. The Respondent apparently practiced 
medicine for twenty-seven (presumably uneventful) \47\ years prior to 
her regrettable foray into the Kentucky criminal justice system. Tr. 
862, 867. A year after graduation she began residing regularly in the 
United States and moved to the District of Columbia where she completed 
her first year of residency at a hospital concentrating in surgery. Tr. 
862-63. In 1979, she embarked on three additional years of medical 
training at Howard University Hospital, the first two of which were 
focused in the area of anesthesia satisfying her second and third year 
residency requirements, and the last year which was a fellowship in the 
dual areas of anesthesiology and obstetrics. Tr. 873. The Respondent 
testified that she accepted a job offer following her formal

[[Page 47761]]

medical training at the formerly-known Meharry-Hubbard Hospital in 
Nashville, Tennessee, serving a thirteen-year post as the head of the 
anesthesia department within the division of surgery, from 1982 until 
1995. Tr. 863-64. She also had the additional responsibility of 
teaching classes to medical and dental students as an assistant 
professor in surgery. Tr. 864. The Respondent explained that she was 
laid off due to a hospital merger in 1995. Id. Brief stints practicing 
bariatric medicine and anesthesiology at the Orofacial Institute 
followed, until 1997 when she and Dr. V. Vilvarajah formed TPA,\48\ a 
practice focused primarily in pain management and secondarily in 
bariatrics. Tr. 864-65; 882. The Respondent testified to holding 
medical licenses in three states: an inactive license in Kentucky,\49\ 
a probated license in Tennessee, and an active license in Florida. Tr. 
866-67. She also testified that throughout the time that she practiced 
pain management, she kept current and abreast of the specialty's 
progress and evolution by investing considerable time each year into 
continuing medical education (CME) courses and networking, and that she 
incorporated the improvements and advances to the field that she 
learned about into her own practice. Tr. 892-93. By the Respondent's 
own reckoning, she accumulated twice the minimum CME credits required 
to maintain her license every three years. Tr. 893.
---------------------------------------------------------------------------

    \47\ The Respondent testified that although the Kentucky Medical 
Board had asked to review patient charts in 2003, no charges 
resulted from that inquiry. Tr. 929-32. In fact, she stated that she 
has never been disciplined by any medical board prior to the 
evolution by the Tennessee Medical Board that caused her license 
there to be placed on probation. Tr. 866-67.
    \48\ While the Respondent and Dr. Vilvarajah were married for a 
brief period, their marriage had dissolved prior to the formation of 
their business relationship. Tr. 1041-42.
    \49\ According to the Respondent's testimony, she let her 
license lapse without renewing it, and it has not been the subject 
of any disciplinary action. Tr. 866.
---------------------------------------------------------------------------

    As discussed in more detail elsewhere in this recommended decision, 
her plea of guilty notwithstanding, the Respondent is now and has 
consistently been resolute in her conviction that she has committed no 
crime. Tr. 922-24, 1038.
    Regarding her medical practice, the Respondent testified that each 
prospective patient who penetrated the doors of TPA, whether by 
referral or as a walk-in,\50\ was subjected to a screening process by 
which their appropriateness for pain management was evaluated and their 
medical complaint was verified. Tr. 876-80. The medical assistant who 
scheduled the initial appointment was tasked with notifying the 
prospective patient that he or she must bring identification to their 
first visit (e.g., a driver's license), a medical record, past imaging 
reports, pharmacy profiles, and bottles that held previously-prescribed 
medications (if any) to their first visit. Tr. 877. The Respondent 
stated that patients were not automatically accepted into the practice, 
even with the required documentation, and medical assistants were 
directed to inform the patients of that policy when arranging the first 
appointment. Id. The Respondent also stated that once the patient 
arrived at the office for an initial visit, the medical assistant would 
ensure that he or she was in compliance with the documentation 
production policy, to wit: ``[T]he medical assistant verifie[d] that 
they ha[d] whatever she asked them to bring.'' Tr. 879. It was the 
Respondent's recollection (at least initially) that seventy percent of 
all patients coming into TPA were based on referrals from other 
doctors. Tr. 898-90. The Respondent testified that some patients were 
screened by the TPA staff and rejected as patients for various 
reasons,\51\ and sometimes patients were discharged with reports made 
to law enforcement authorities. Tr. 905-06, 913-14. According to the 
Respondent, TPA stopped accepting medical insurance and became a cash-
only practice in 2006. Tr. 890.
---------------------------------------------------------------------------

    \50\ The Respondent testified that while TPA used to advertise 
in the telephone directory and accepted walk-in patients (who 
arranged for an appointment by their own devices beforehand) 
starting in 1997, this was a practice that ceased in 2006. Tr. 876-
78.
    \51\ The Respondent testified that TPA maintained a log book 
with photocopies of the driver's licenses of prospective patients 
who were rejected in the course of the intake process. Tr. 905-06. 
An exhibit that was purported to be photocopies of the contents of 
the log book was excluded based on foundational and relevance 
grounds. Tr. 906-13; Resp't Ex. 1 (ID). The evidence does not 
contradict the Respondent's assertion that some patients were 
rejected from TPA at intake, and the Government has not contested 
this premise.
---------------------------------------------------------------------------

    As assertive as her testimony began, the Respondent progressively 
became more equivocal in how she continued to describe the office's new 
patient evaluation procedure. The next phase of the protocol that she 
explained included a face-to-face conversation between the patient and 
either Dr. Vilvarajah or herself, to allow the physician to observe, 
among other things, dress, demeanor, and manner of speech. Id. The 
Respondent's portrayal of the protocol shifted from the doctor 
routinely verifying the authentication of the patient-supplied 
documents, to ``if we see a report of an x-ray, we may call that x-ray 
lab and verify that this x-ray lab is correct.'' Id. (emphasis added). 
The Respondent later stated that if she or her partner decided to 
accept the person as a patient, and caused the initial workup 
procedures to commence (including taking vital signs, blood work, and a 
urine screen), that she would ``go again over their medical record and 
if they [brought] a medical record, we [would] take from that medical 
record whatever is pertinent to the patient's problem and have the 
medical assistant make a copy of [these] document reports.'' Tr. 885. 
(emphasis supplied). When pressed on the issue of why she would ever 
prescribe controlled substances at an initial visit in a case where the 
patient declined to furnish his or her prior medical records, the 
Respondent's equivocation diminished and she asserted that such a 
practice was ``[n]ot [done] without prior medical records [and that] 
[t]hey ha[d] to have some type of problem, some medical reason why 
[she] would prescribe to them.'' Tr. 898. Such medical justification 
might be established to the satisfaction of the Respondent with just an 
MRI (in addition to the patient's complaint and her exam). Id. When 
pressed on the issue of why she did not forbear prescribing until a 
full medical record was obtained rather than just an x-ray or pharmacy 
report, the Respondent stated that ``some [of her patients did] not 
have a medical record[, s]o, all they bring is that x-ray,'' and 
testified that she believed that there was not a patient chart in 
evidence reflecting that the patient lacked a prior medical record or 
x-ray but yet still received prescriptions for opiates on the first 
visit. Tr. 899; see Tr. 1004 (confirming her policy of not prescribing 
controlled substances without some form of prior medical record). 
However, even a perfunctory glance at the charts received into the 
record reflects that the Respondent's statements in this regard are 
inaccurate. See, e.g., Gov't Ex. 22 (controlled substance prescriptions 
issued first visit, MRI report dated same as initial visit and 
initialed by TPA the day after initial visit, no prior medical record); 
Gov't Ex. 23 (controlled substance prescriptions issued at first visit, 
two MRI reports for knee and lumbar spine, no prior medical chart); 
Gov't Ex. 24 (controlled substance prescription issued at first visit, 
only MRI submitted with sole impression of ``[n]o acute osseous 
abnormality,'' no prior medical chart); Gov't Ex. 28 (controlled 
substance prescriptions issued at first visit, only MRI report dated 
four years prior, no prior medical chart); Gov't Ex. 31 (controlled 
substance prescriptions issued at first visit, only prescription label 
for OxyContin 40 mg and MRI with ``[m]ild degenerative changes'' as 
sole impression submitted at first visit, no prior patient chart); 
Gov't Ex. 32 (controlled substance prescriptions issued at first visit, 
MRI report dated almost five years prior, single progress

[[Page 47762]]

note by former physician over nine months prior, no prior patient 
chart); Gov't Ex. 33 (controlled substance prescriptions first visit, 
incomplete record of an initial evaluation by former physician four and 
a half years prior, no prior patient chart); Gov't Ex. 34 (controlled 
substance prescriptions issued by Respondent at first visit, chief 
complaint regarding ribs and knees, one follow up chart note regarding 
elbow x-ray by previous physician less than two years prior, no prior 
medical chart); Gov't Ex. 38 (controlled substance prescriptions issued 
at first visit, no prior medical records); Gov't Ex. 43 (controlled 
substance prescriptions issued by Respondent at first visit, prior MRI 
report dated over eight years prior and office visit note by a prior 
neurosurgeon over eight years prior, no prior medical chart); Gov't Ex. 
48 (controlled substance prescriptions issued by Respondent at first 
visit, no prior medical records); Gov't Ex. 49 (controlled substance 
prescriptions issued by Respondent at first visit, no prior medical 
records). Even the Respondent's own expert, Dr. Miller, indicated that 
past medical records and imaging reports were only ``sometimes'' in the 
patient charts. Tr. 571.
    This area saw some additional level of exploration during the 
Respondent's cross-examination. Regarding Patient FH (Gov't Ex. 39), 
the Respondent recounted that the patient's chief compliant was pain 
emanating from a broken rib and his knees, and that she prescribed him 
Lortab, OxyContin, and Xanax at his first visit. Tr. 1004-06.\52\ When 
confronted that the only prior objective medical evidence furnished by 
the patient was a record pertaining to an elbow fracture, the 
Respondent was moved to concede on reflection that ``looking at it 
back, I probably gave it to him, this prescription, based on my 
findings from his broken ribs and his knees.'' Tr. 1006 (emphasis 
supplied). She then further admitted that she failed to follow up, and 
prescribed controlled substances to FH for four years, grounded almost 
exclusively based upon a subjective patient complaint. The chart 
reflects no x-ray or MRI that could have confirmed, refuted, or 
explained the patient's alleged conditions. The Respondent agreed that 
upon reflection, her controlled substance prescribing lacked a medical 
justification. Tr. 1006-07.
---------------------------------------------------------------------------

    \52\ The chart reflects that the Respondent failed to take down 
a patient history reflective of what opioid drugs Patient FH had 
received in the past, if any, when she prescribed Lortab and 
OxyContin for the first time. See Gov't Ex. 39 at 23, 85-86, 89. 
This was apparently in spite of FH reporting on his intake form that 
while he was not currently on any pain medications, see id. at 89 
(blank line under prompt regarding treatments and medications 
presently received for pain); see also id. at 86 (new patient notes 
filled in by Respondent), he experienced ninety percent relief in 
the last day from the pain medications or treatments he was 
experiencing, id. at 89.
---------------------------------------------------------------------------

    During her testimony, the Respondent addressed the manner in which 
she reacted to UDS anomalies, including how she responded to new 
patients whose UDS failed to reflect medications they attested to being 
on, or who subsequently tested negative for drugs prescribed at TPA. 
According to the Respondent's testimony, it was not uncommon for 
patients to test negative for substances prescribed, but in those cases 
she would speak to the patient and document the reason why that was the 
case. Tr. 894-95. The Respondent recounted numerous justifications she 
encountered that were connected with UDS result irregularities. 
Examples included TPA's determination to commence opioid treatment on a 
new patient at a lesser dose than the patient's former practice, a 
phenomenon that sometimes resulted in the patient consuming the 
medications prescribed at TPA at a more rapid pace; another patient who 
experienced vomiting before providing a urine sample, an event that 
could result in a reduction of the drug in the system; a patient who 
was prescribed antibiotics by his or her primary care physician, and 
was therefore directed by that physican to suspend the taking of TPA's 
pain medications; a patient who suspended taking controlled 
prescriptions temporarily on his or her own judgment out of safety 
concerns associated with impaired driving ability. Tr. 894-96. The 
Respondent recollected that the TPA's tolerance for prescribing to 
patients who demonstrated potential drug addiction became more 
restrictive near the end of 2007. Tr. 1013. However, unlike the more 
stringent policy of her expert witness, Dr. Miller, the Respondent 
indicated that TPA would tolerate two UDS stumbles which reflected 
illicit drug hits. Tr. 1013-15.
    The Respondent's assertions to the contrary notwithstanding, the 
record is replete with instances where the Respondent remained willing 
to continue to prescribe controlled substances in the face of negative 
UDS results that should have been positive, with associated charts that 
were devoid of documentation that might explain the discrepancies. See, 
e.g., Gov't Ex. 27 (Patient CE); Gov't Ex. 28 (Patient DF); Gov't Ex. 
33 (Patient TH); Gov't Ex. 34 (Patient FH); Gov't Ex. 38 (Patient MM); 
Gov't Ex. 48 (Patient HGW).
    The Respondent's handling of this issue during the course of her 
testimony was not altogether consistent. Upon a representation made by 
Government counsel that Patient HGW's chart (Gov't Ex. 48) contained 
twenty instances of individual substances found in drug screen reports 
that reflected results inconsistent with what was legal or prescribed 
by TPA (at which point the Respondent admitted that there were at least 
some inconsistent drug results that she noticed), the Respondent 
initially disclaimed that her care and prescribing did not fall below 
the standard of care in Tennessee by responding this way, ``For that 
particular patient, it depends on how you see it.'' Tr. 1002-03. But 
when directed to a page reflecting that she prescribed four separate 
controlled substances at HGW's next to last visit of four years of 
treatment, the Respondent agreed that issuing that set of controlled 
prescriptions after so many red flags did fall below the state standard 
of care. Tr. 1003.
    The Respondent provided detail about additional policies she 
employed to stem diversion. She testified that when she suspected a 
patient was engaged in doctor shopping, she would confront the patient, 
where appropriate verify the treatment with the another treating 
physician, and in cases where the patient's explanation for a 
discrepancy panned out, the Respondent testified that it was her custom 
to offer the patient the option of continuing treatment with her 
partner. Tr. 1010-11. However, the Respondent later admitted that 
although Patient RN's chart \53\ reflected exactly this scenario, no 
such notes were to be found in the file. Tr. 1011-12. The Respondent 
explained that prospective patients who were unable to produce a 
pharmacy profile were afforded the option providing prescription 
bottles, the labels of which would be removed and affixed to the TPA 
patient chart. Tr. 1009-10. When asked if the patient charts produced 
at the hearing contained such indicia, she clarified that those 
patients who lacked profiles in reality only sometimes brought in their 
bottles. According to the Respondent, she knew that it occurred at 
least on occasion, inasmuch as she observed bottle labels affixed in 
several ``other charts'' not submitted into evidence (of the thirty 
that were). Id.
---------------------------------------------------------------------------

    \53\ Gov't Ex. 39.
---------------------------------------------------------------------------

    The Respondent stated that TPA switched drug screen analysis 
methods from immunoassay (IA) to gas chromatography (GC) midway through 
2007, because the GC has a more sensitive cutoff and is able to 
discriminate among naturally-occurring or synthetically-engineered 
opioid

[[Page 47763]]

substances. See Tr. 899-902. However, in light of TPA's history of 
chronic inaction in the face of problematic testing results, 
enhancements regarding UDS testing bear little relevance on the 
Respondent's suitability for a registration. Put another way, 
unreliable results are as easily ignored as reliable ones.
    During the course of her testimony, the Respondent conceded that 
the recordkeeping entries she employed in her patient charts ``were not 
completely adequate,'' but ascribed at least some of the blame to the 
nature of her early training during the 70's and 80's. Tr. 903. The 
Respondent testified that she now understood how the field had changed 
over time. Id. There was no direct link made by the Respondent between 
recent developments in examination protocol and her history of seeming 
indifference to diversion red flags (principally the unresolved UDS 
result anomalies) that appear throughout the examined patient charts. 
In the Respondent's estimation, she may have been ``duped'' by some of 
her patients in the midst of her endeavors ``to take care of these 
patients with all [her] heart.'' Tr. 993-94, 1041.
    The Respondent, through her own testimony, submitted into evidence 
numerous certificates demonstrating the successful participation in CME 
seminars. Some courses were completed pursuant to the probation status 
imposed on her by the Medical Board as obligatory terms, while others 
were undertaken over-and-above the probationary conditions. Tr. 986-87; 
see Tr. 987-92; Resp't Ex. 3 (``Intensive Course in Medical Record 
Keeping,'' June 3-4, 2010) (certificate of attendance only, no credit 
value indicated); Resp't Ex. 4 (``Prescribing Controlled Drugs,'' July 
21-23, 2010) (20.75 credits); \54\ Resp't Ex. 7 (``Intensive course in 
Medical Ethics, Boundaries & Professionalism,'' Sept. 2-3, 2010) (22.50 
credits); Resp't Ex. 8 (``Topics in Pain Management, Volume 26, Issue 
1,'' Sept. 20, 2010) (1.50 credits); Resp't Ex. 9 (``Topics in Pain 
Management, Volume 26, Issue 2,'' Sept. 20, 2010) (1.50 credits); 
Resp't Ex. 10 (``Risk Management Essentials for Physicians, Second 
Edition, Part I,'' October 15, 2010) (5.0 credits); Resp't Ex. 12 
(``Controversies in Pain Management, Pain, Dependency, and Addiction,'' 
Nov. 12, 2010) (7.00 credits); Resp't Ex. 13 (``Topics in Pain 
Management, Volume 26, Issue 3,'' Nov. 24, 2010) (1.50 credits); Resp't 
Ex. 14 (``CME.COM Principles and Practice of Pain Medicine,'' Dec. 30, 
2010) (27.00 credits).\55\ She also provided a letter, dated August 23, 
2010, from Winston C.V. Parris, M.D., a professor of anesthesiology and 
the Division Chief of Pain Management at Duke Medicine. Resp't Ex. 5. 
Dr. Parris certified that the Respondent was with him for two weeks in 
August of 2010, at the Pain and Palliative Care Clinic at Duke 
University Medical Center. Id. During that time, the Respondent 
observed Dr. Parris's new patient interactions and evaluations, follow-
up patient assessments, and performance of interventional procedures. 
Id. In addition to her observations, Dr. Parris verified that the 
Respondent also ``attended all Grand Round lectures and Journal Club'' 
and participated in discussions regarding chronic pain management 
patients. Id.; see Tr. 988-89.
---------------------------------------------------------------------------

    \54\ Where indicated, all credits submitted reflect that they 
are awarded as something counting toward ``American Medical 
Association (AMA) PRA Category 1,'' a term that regrettably does not 
have the benefit of further explanation in the record.
    \55\ Although unclear as to any relevant purpose it has toward 
the disposition of her COR application, the Respondent also provided 
proof as to her attendance in a course on ``Domestic Violence: Care 
and Intervention,'' completed as mandatory CME credit for her 
continued licensure on November 1, 2010. Resp't Ex. 11; Tr. 990.
---------------------------------------------------------------------------

    During the Respondent's testimony, there was no acknowledgement of 
her own culpability. Consistent with her guilty plea and the surrender 
of her COR, the Respondent maintained a relatively calm demeanor that 
lent itself more to one patiently enduring a required procedural 
evolution than one who has truly acknowledged any measure of wrongdoing 
or desired to signal acceptance of any measure of responsibility. On 
the issue of credibility, the Respondent repeatedly acknowledged clear 
conflicts with admitted documentary evidence of record, and was forced, 
on multiple occasions, to withdraw from positions she had previously 
presented without discernible ambiguity. Her position that much of the 
deficiencies outlined in discharging her obligations were explainable 
by the time period during which she attended medical residency \56\ 
flies directly in the face of her extensive and impressive training and 
experience in the fields of pain management and anesthesiology, and 
simply stated, is patently implausible. She was also frequently 
ambiguous in outlining details associated with her patient care. In 
short, beyond some biographical data and a handful of uncontested 
topics, the Respondent's testimony was not sufficiently detailed, 
consistent, or plausible to be deemed fully credible on contested 
issues in these proceedings.
---------------------------------------------------------------------------

    \56\ Tr. 903.
---------------------------------------------------------------------------

Patient Chart Reviews

    DIs Phillips and Stevens both reviewed patient charts that the 
former had procured from the Tennessee Medical Board and the 
Commonwealth's Attorney's Office. A subset of ten of the acquired 
charts were provided to and reviewed by the Government's medical 
consultant, Dr. Loyd, and the entire group was eventually provided to 
and reviewed by the Respondent's medical expert, Dr. Miller. By a 
preponderance, the evidence of record supports the following 
observations and findings relative to the reviewed patient records.

Patient LC

    The LC patient chart \57\ was reviewed by DI Stevens, was received 
in evidence for review by this tribunal, and was analyzed by Dr. Loyd. 
Dr. Loyd testified that although his review of LC's chart revealed 
numerous urinalysis anomalies, there was no evidence of any of the sort 
of patient confrontations about those anomalies that he indicated were 
required by his understanding of accepted medical practice.\58\ Tr. 60-
61. Loyd also testified that there were other red flags of diversion in 
the chart, including requests for specific drugs, signs of doctor 
shopping (to the tune of ``eight different providers, utilizing five 
different pharmacies in a three-month period''),\59\ and a crescendo 
pattern of controlled substance use that was unsupported by history, 
physical examination, or imaging. Tr. 63, 65-66. According to Dr. Loyd, 
these red flags, that were present in the chart, did not receive the 
required patient confrontation. Id. Additionally, a chart note 
references a possible addiction issue, recommends a formal addiction 
treatment regimen at an identified facility, but sets forth no measure 
of documented follow up on the issue. Tr. 66-67. Significantly, Dr. 
Loyd found that the Respondent continued to prescribe controlled 
substances to LC even after the UDS anomalies became apparent. Tr. 72. 
Loyd testified he concluded that the controlled substances prescribed 
by the

[[Page 47764]]

Respondent to LC ``were outside the scope of accepted medical practice 
and not for legitimate medical reasons.'' Id. In his report, Dr. Loyd 
summarized his conclusions regarding the Respondent's controlled 
substance prescribing practices relative to LC as follows:
---------------------------------------------------------------------------

    \57\ See Gov't Ex. 24.
    \58\ Although Dr. Loyd initially testified that he perceived 
that the patient's failure to follow up on a physical therapy 
recommendation also constituted a red flag that did not benefit from 
a required confrontation, his subsequent acknowledgement that he was 
unable to ascertain the mechanics of how the recommendation was made 
or followed up on, sufficiently eviscerated the strength of this 
observation to deprive it of any appreciable weight. Tr. 58-62.
    \59\ Tr. 66.

    [LC] was prescribed scheduled drugs in quantities and frequency 
[sic] inappropriate for his complaint or illness. He had dramatic 
and compelling but vague complaint (10/10 pain) not substantiated by 
physical exam findings or imaging. He was clearly ``doctor 
shopping.'' He had five inconsistent drug screens, several of which 
were suspicious for diversion. He had a crescendo pattern of drug 
use with progression to multiple drugs. He requested drugs by name. 
. . . The controlled substances prescribed in [LC's] case were 
outside the scope of accepted medical practice and not for a 
---------------------------------------------------------------------------
legitimate medical purpose.

Gov't Ex. 57 at 2.

    Through his testimony, DI Stevens identified what he believed to be 
six red flags \60\ of abuse or diversion, five of which were 
purportedly inconsistent UDS results and one that was a letter 
reporting suspicion of doctor shopping by a health insurance company. 
DI Stevens addressed these areas in the LC patient chart 
chronologically.
---------------------------------------------------------------------------

    \60\ A single anomalous UDS may contain multiple anomalies.
---------------------------------------------------------------------------

    The first UDS addressed by DI Stevens' testimony was conducted on 
August 20, 2003. Tr. 425-26; Gov't Ex. 24 at 64. The results of this 
UDS reflected values below the cutoff thresholds (negative results) for 
each of the controlled substance classes tested, including 
amphetamines, barbiturates, benzodiazepines, cocaine, marijuana, 
methadone, methaqualone, opiates, phencyclidine (PCP), and 
propoxyphene. Gov't Ex. 24 at 64; see Tr. 425-26. DI Stevens, who is 
not a medical professional, testified that he found a prescription in 
the chart issued by the Respondent on July 23, 2003 (less than a month 
prior to the UDS) for Percocet, a Schedule II controlled substance that 
contains oxycodone. Tr. 426; Gov't Ex. 24 at 50 (script photocopy); see 
21 C.F.R. Sec.  1308.12(b)(1)(xiii) (2011). Percocet is a drug that DI 
Stevens expected to cause a positive result on Patient LC's UDS for 
opiates.\61\ Notwithstanding this alleged anomaly, which would have 
been received by the Respondent's clinic some days after the screen, DI 
Stevens pointed out that Patient LC continued to receive controlled 
substances in ascending quantities and additional varieties at 
subsequent office visits, including the first visit after the UDS on 
October 15, 2003, Gov't Ex. 49 (script photocopy for 84 
Percocet 10/325 mg), and another visit on January 6, 2004 by the 
Respondent, id. at 47 (script photocopies for 112 Percocet 10/
325 mg and the benzodiazepine 30 Valium 5 mg), without any 
notation regarding the anomaly to the patient chart, Tr. 427-31; see 
also Gov't Ex. 24 at 17-18 (chart entries dated October 15, 2003 and 
January 6, 2004 reflecting issuance of same prescriptions as the script 
photocopies).\62\ DI Stevens testified that the chart note for the 
October visit, rather than expressing concern over the anomaly, instead 
observed (counter intuitively) that ``patient has no side effects or 
evidence of addiction.'' Tr. 430; Gov't Ex. 24 at 18 (chart entry dated 
October 15, 2003, ``Patient has no side effects or evidence of 
addiction''); see also id. at 17 (chart entry dated January 6, 2004, 
``No side effects or evidence of addiction'').
---------------------------------------------------------------------------

    \61\ During the course of DI Stevens' testimony, it quickly 
became apparent that he was operating under the assumption that a 
substance containing oxycodone, like Percocet, should cause a 
positive on the UDS for opiates if taken as prescribed the month 
preceding it. See, e.g., Tr. 434-38 (noting the significance that 
Patient LC tested positive in a later UDS for opiates even though he 
was not issued a prescription for Percocet a month immediately 
prior), 460 (commenting the significance of Patient HGW's UDS 
negative result for opiates even though he obtained prescriptions 
for Percocet and OxyContin a month prior).
    \62\ Both parties to this proceeding submitted proposed evidence 
in the form of photocopies contained in exhibits in advance of 
hearing that, due presumably to poor or multi-generational 
photocopying, were found profoundly unintelligible. Prior to 
hearing, this tribunal issued an advisal to the parties taking 
notice of this issue, ALJ Ex. 19, and the parties were further 
advised on the record before the first witness was sworn that these 
pages would be returned to its respective proponent at the time the 
balance of the exhibit was offered into evidence, Tr. 5-6, as these 
pages could not constitute substantial evidence in any shape or 
form. Throughout the course of the hearing, to cure this problem, 
the parties identified some problematic portions of their respective 
proposed exhibits and were afforded the relief of substituting 
better-quality reproductions. Insofar as proving that prescriptions 
for controlled substances emanated from the Respondent, the 
Government also employed the alternative method of relying solely on 
progress and treatment plan notes entered in the patient chart 
appearing to have been written by the Respondent's hand when the 
photocopies of scripts were indiscernible or only partially 
depicted. This alternative process proceeded without objection by 
the Respondent, and the Respondent confirmed, through her own 
testimony, the reliability of prescription notes that Government 
witnesses claimed were made by her, Tr. 982-83.
---------------------------------------------------------------------------

    DI Stevens testified that a drug screen collected March 3, 2004 
indicated Patient LC was negative for all controlled substances 
including opiates and benzodiazepines, notwithstanding a chart entry 
reflecting prescriptions issued on February 3, 2004 for Percocet and 
Valium signed by the Respondent. Tr. 431-33; Gov't Ex. 24 at 17. Again, 
this information inspired the Respondent to enter a note that there 
were ``[n]o side effects or evidence of addiction.'' Tr. 433; Gov't Ex. 
24 at 17. However, DI Stevens testified to finding photocopies of 
additional scripts issued and signed by the Respondent following the 
March 2004 UDS results. Tr. 433-34; Gov't Ex. 24 at 44; see also id. at 
16 (chart entry with Respondent's signature dated May 26, 2004 
documenting ``No side effects or evidence of addiction'' and 
prescriptions for Percocet and Valium).
    DI Stevens also noted a September 15, 2004 discrepant UDS report 
that signaled positive results for the presence of opiates, 
benzodiazepines, and methadone. Tr. 434; Gov't Ex. 24 at 60. Stevens 
review of the chart revealed controlled prescriptions only for Percocet 
and Valium (no methadone) at documented visits occurring before the 
test, Tr. 435-36; Gov't Ex. 24 at 16 (chart entry dated May 26, 2004 
signed by Respondent), and that Patient LC received his first 
prescription for methadone from the Respondent's practice on the same 
visit that he first tested positive for the drug, Tr. 436; Gov't Ex. 24 
at 15 (chart note), 43 (script photocopy). The chart also shows no 
controlled substance prescription for the month before the September 
UDS, and no explanation as to why the patient was not coming in, or 
whether during his absence from the practice he was receiving 
controlled prescriptions elsewhere. See Tr. 438. According to DI 
Stevens, this is another example of a drug screen anomaly. See Tr. 437-
38. A progress note dated September 15, 2004 (a time concurrent with 
the UDS but before methadone was prescribed) and signed by the 
Respondent reads, ``[Patient] feels that the methadone gives him more 
profound relief. No side effects or evidence of addiction.'' Gov't Ex. 
24 at 15. The chart sets forth neither a basis for the patient's 
knowledge of the advantages of methadone, nor a comment regarding 
whether and under what conditions (legal or otherwise) LC obtained and 
tried methadone, nor is any detail provided as to what dosages of 
methadone were taken by LC and how often. Despite these possible causes 
for concern (or at the very least grounds for further documentation), 
DI Stevens testified that he observed evidence within LC's patient 
chart of controlled substances being prescribed by the Respondent at 
his next two office visits, on October 13, 2004, for Valium and 
Percocet, and on November 10, 2004, for Valium and methadone. Tr. 436-
37; Gov't Ex. 24 at 15 (chart notes).
    The next red flag that DI Stevens identified in his testimony was a 
report generated by, and accompanied with a

[[Page 47765]]

cover letter dated November 19, 2004, from, the insurance company 
United Health Care, which was found in the LC patient chart and 
addressed to the Respondent.\63\ Tr. 438-39; Gov't Ex. 24 at 70-71. The 
report advised that during the third quarter of 2004, eight prescribers 
individually prescribed an assortment of controlled substances to 
Patient LC that he filled at five different pharmacies. Id. at 70. In 
its letter, the insurance company ``encourage[d]'' Respondent to, ``if 
appropriate, use [the report] to modify [Patient LC's] use of narcotic 
analgesics.'' Id. at 71. Based upon his experience as a diversion 
investigator, Stevens believed this information to be demonstrative of 
doctor shopping on the part of Patient LC. Tr. 439. A chart note 
reflective of this information was identified by DI Stevens to have 
been made by Dr. Vilvarajah on December 7, 2004, to wit: ``According to 
UHC [Patient LC] visited 8 MD's, 5 Pharmacies [sic] and obtained 215 
days [sic] supply during 7/9/04 through 9/30/04.'' \64\ Tr. 439; Gov't 
Ex. 24 at 13. A hand-scrawled annotation was also identified as the 
phrase ``Correct immediately!'' with an arrow pointing to the total 
number of unique pharmacies reported. Gov't Ex. 24 at 82. Still, DI 
Stevens identified prescriptions issued by the Respondent approximately 
one month later on January 5, 2005, for methadone and Valium, 
notwithstanding the presence of the entries and insurance letter in the 
chart. Tr. 440; Gov't Ex. 24 at 40. A chart note reflecting these 
prescriptions was entered by the Respondent immediately below (on the 
same page as) Dr. Vilvarajah's chart note documenting his doctor 
shopping reservations. Gov't Ex. 24 at 40.
---------------------------------------------------------------------------

    \63\ For reasons non-apparent, the report was dated after the 
cover letter, November 30, 2004.
    \64\ Therefore, Patient LC was able to fill enough prescriptions 
to supply him with 215 days worth of controlled substances in only 
an 83-day period.
---------------------------------------------------------------------------

    Another anomalous UDS, taken May 25, 2005, was also addressed by DI 
Stevens' testimony. See Tr. 440-42; Gov't Ex. 24 at 59. The results, 
reminiscent of others discussed supra, were negative for all controlled 
substances tested. Tr. 441-42; Gov't Ex. 24 at 59. Because Patient LC 
received prescriptions for Valium and methadone at an office visit the 
month before the test on April 27, 2005, a UDS report that was devoid 
of these substances would presumably come as a surprise to the treating 
physician confronting such results. Tr. 441; Gov't Ex. 24 at 12 (chart 
note). DI Stevens testified that because he expected, based on the 
controlled substances prescribed the month before the UDS, to see 
positive showings for benzodiazepines and methadone, this was another 
example of a red flag of diversion that earned no mention in the 
progress notes written into the patient chart by the Respondent. Tr. 
442-43. Nevertheless, Patient LC received controlled substances issued 
by the Respondent at the next two office visits for Valium and 
methadone on June 22 and July 22, 2005, respectively. Tr. 443-45; Gov't 
Ex. 24 at 11 (chart note), 37 (June 22, 2005 script photocopy for 
methadone), 36 (July 20, 2005 script photocopies for methadone and 
Valium).
    An UDS that was collected on March 1, 2005 reflected a positive 
response only for methadone should have raised some level of concern, 
in view of the fact that the Respondent has prescribed methadone plus 
Percocet and Valium to LC twenty-eight days prior (February 1, 2006) to 
the date the urine sample was provided. Tr. 445-46; Gov't Ex. 24 at 56, 
32 (script photocopies); id. at 12 (chart note). As perceived by DI 
Stevens, not even passing concern over the apparent inconsistency 
appears anywhere in the patient chart. Tr. 446-47; Gov't Ex. 24 at 8-9. 
In spite of the drug screen, the Respondent blithely continued to 
provide Patient LC with a steady flow of Percocet, methadone, and 
Valium prescriptions during the course of the next three office visits 
that followed the UDS results. Tr. 447-48; Gov't Ex. 24 at 30 (script 
photocopies dated April 26, 2006), 29 (script photocopies dated May 24, 
2006), 28 (script photocopies dated June 21, 2006); see id. at 7-8 
(chart entries reflecting same prescriptions issued by Respondent).

Patient RN

    The patient chart \65\ maintained on Patient RN was reviewed by DI 
Phillips, was received in evidence for review by this tribunal, and was 
evaluated by Dr. Loyd. Dr. Loyd's report and testimony discussed the 
controlled substance prescribing practices evident in the patient chart 
maintained on RN. Loyd noted that although this chart reflected an 
effective pain assessment history, no alcohol or substance abuse 
history was taken, and although controlled substances were ostensibly 
prescribed to address complaints of chronic knee pain, the chart failed 
to show any physical examination of the knee during the patient's 
monthly office visits. Gov't Ex. 57 at 7. It was Loyd's view that the 
upward titrations of controlled pain drugs were implemented ``without a 
history, physical exam or imaging to support the increase in 
medications.'' Id. In fact, Loyd testified that he ``didn't feel like 
there was enough [in the chart] to indicate the use of opiate 
narcotics.'' Tr. 163.
---------------------------------------------------------------------------

    \65\ See Gov't Ex. 39.
---------------------------------------------------------------------------

    More fundamentally, Loyd observed that three UDS reports recorded 
in the chart reflect the absence of controlled substances that had been 
prescribed to RN and should have been in his system.\66\ Gov't Ex. 57 
at 7. The chart reflects that RN eventually was expelled from the 
practice upon a fourth UDS which showed the presence of cocaine. Gov't 
Ex. 39 at 4; Gov't Ex. 57 at 7.
---------------------------------------------------------------------------

    \66\ Yet Dr. Loyd felt that regarding a positive methadone UDS 
result, the chart reflected a sufficient inquiry. Tr. 300.
---------------------------------------------------------------------------

    At the conclusion of his assessment regarding the RN patient chart, 
Dr. Loyd summarized his conclusions as follows:

    [RN] was prescribed scheduled drugs in quantities and frequency 
[sic] inappropriate for his complaint(s)--left knee and low back 
pain. These complaints were not supported with physical exam 
findings or imaging. He had no substance abuse history taken. He 
requested medication by name--Percocet. He had a total of four 
failed drug tests. He had findings that were consistent with drug 
diversion that were not followed up on. He had a crescendo pattern 
of drug use with progression to multiple drugs. . . . The controlled 
substances prescribed for left knee pain and low back pain in [RN's] 
case were outside the scope of accepted medical practice and not for 
a legitimate medical purpose.
Id. at 7-8.\67\
---------------------------------------------------------------------------

    \67\ The Government also elicited some testimony regarding Dr. 
Loyd's estimation of the relative distance between RN's home and the 
Respondent's practice, Tr. 159-61, but the issue was not 
sufficiently developed to merit consideration on any issue to be 
decided in this case, and like other testimony relative to such 
distances, played no part in this recommended decision.

    In her testimony, DI Phillips presented what she believed to 
have been five anomalous UDS results evident in RN's patient chart. 
Among them was a drug screen reporting negative results for all 
controlled substances a month after opiates and benzodiazepines were 
prescribed to RN, Tr. 703-06; Gov't Ex. 39 at 14 (chart entry dated 
August 27, 2005 noting prescriptions for Percocet, OxyContin, and 
Xanax), 37 (photocopies of same), 50 (UDS report dated September 6, 
2005 negative for all substances), and another reflected a positive 
result for cocaine, Tr. 715-16; Gov't Ex. 39 at 44 (UDS report dated 
March 24, 2007); see Gov't Ex. 39 at 4 (March 31, 2007 chart note by 
Dr. Vilvarajah reflecting RN positive for cocaine).\68\ Regarding a 
UDS that popped positive for methadone and opiates, neither of which 
were ever prescribed by Dr. Vilvarajah, and had not been prescribed 
for the month prior to the screen by the Respondent, the presence of 
methadone was addressed by the Respondent as reflected in

[[Page 47766]]

a chart note. Tr. 707-08, 710-11, 845-49. The handwritten entry by 
the Respondent indicated that Patient RN had been admitted to the VA 
hospital and that the VA administered methadone to RN. Tr. 846-47; 
Gov't Ex. 39 at 11-12; see 710-11. Records within Patient RN's file 
to verify the veracity of her account, or documented efforts to 
procure them, were absent from the chart. During her testimony, the 
Respondent acknowledged that RN's chart did not reflect any efforts 
by anyone at TPA to reach out to the VA hospital to inquire about 
the alleged methadone prescription. Tr. 1012.
---------------------------------------------------------------------------

    \68\ The patient record shows that Dr. Vilvarajah terminated 
Patient RN from the practice as a consequence for testing positive 
for cocaine. Gov't Ex. 39 at 3-4.
---------------------------------------------------------------------------

    DI Phillips also pointed to chart indications that Patient RN 
tested negative for opiates despite prescriptions for oxycodone 40 
mg and oxycodone 15 mg a month before the test. Tr. 711-12; Gov't 
Ex. 39 at 10 (chart entry of prescriptions issued August 12, 2006), 
47 (UDS dated September 9, 2006 negative for opiates). DI Phillips' 
testimony demonstrated that the Respondent's seemingly inexorable 
response to each anomaly was to provide Patient RN with additional 
prescriptions for controlled substances.\69\ See, e.g., Tr. 707-09, 
713-15.
---------------------------------------------------------------------------

    \69\ One purported UDS irregularity suggested by DI Phillips 
relative to the RN chart does not withstand objective analysis. A 
UDS conducted in connection with RN's initial visit on March 11, 
2005 reflects the presence of opiates in RN's system on that date. 
Tr. 717; Gov't Ex. 39 at 52. DI Phillips concluded that this was 
problematic based upon the form for new patient notes wherein it 
signified that RN was not currently on any medications. Tr. 716; 
Gov't Ex. 39 at 67. While, after it was brought to her attention, DI 
Phillips conceded that on the same form under ``History of Present 
Illness'' prescriptions for OxyContin and Lortab were written, it 
was her theory that these drugs were presumably taken by Patient RN 
at some point, but not necessarily contemporary with the initial 
visit. Tr. 851-53. It was further revealed on cross-examination that 
Patient RN indicated on one of his intake forms that he was 
currently receiving oxycodone and Lortab for his pain. Tr. 853-54, 
Gov't Ex. 39 at 74. Thus, on the current record, the March 11, 2005 
UDS report cannot be conclusively found to support a true anomaly 
requiring additional investigation or confrontation.
---------------------------------------------------------------------------

Patient BR

    The BR patient chart \70\ was reviewed by DI Phillips, was 
received in evidence for review by this tribunal,\71\ and was 
evaluated by Dr. Loyd. In his report and testimony, Dr. Loyd noted 
that pain medications trended upwards, and that the chart contained 
indications of three UDS reports where BR failed to test positive 
for controlled substance pain medications that should have been in 
his system, with no indication that the matter was raised between 
doctor and patient. Gov't Ex. 57 at 10; Tr. 186-87. The chart also 
contained a remark that BR was visibly drowsy while standing by for 
his appointment in the office waiting room, as well as a phone call 
notation that a pharmacy employee had telephoned to report that on 
the same day he was nodding off in the waiting room, he had fallen 
down at the pharmacy. Gov't Ex. 57 at 10; Tr. 188-89. Loyd testified 
that respiratory suppression is a potential side effect of the 
controlled substance medications prescribed to BR, Tr. 187, 190, and 
that, in his expert opinion, simply jotting a note that memorialized 
these events and conducting no confrontation or follow up is not 
within the usual course of professional practice, Tr. at 189-91.
---------------------------------------------------------------------------

    \70\ See Gov't Ex. 42.
    \71\ Compare Gov't 42 at 54 (Patient BR denies on patient 
history intake form ``nervous breakdown/depression/anxiety''), with 
id. at 52 (patient anxiety documented on new patient notes); compare 
id. at 44 (UDS anomalies positive for marijuana and non-prescribed 
opiates, and id. at 43 (UDS anomalies negative for prescribed 
opioids and benzodiazepines), with id. at 11, 30 (prescriptions 
afterward by Respondent for OxyContin, Percocet, and Xanax), and id. 
at 11, 29 (same); compare id. at 42 (UDS anomaly negative for 
prescribed opioids), with id. at 10, 28 (prescriptions afterward by 
Respondent for OxyContin, Percocet, and Xanax), and id. at 10, 27 
(same but substituting methadone for Percocet), and id. at 9, 26 
(same), and id. at 8-9, 25 (same), and id. at 8, 24 (same); compare 
id. at 39 (UDS anomalies negative for prescribed methadone and 
opioids), and id. at 7 (chart note by Dr. Vilvarajah that BR tripped 
and fell in pharmacy day of UDS and that BR was negative for opiates 
and methadone), and id. (chart entry at next visit by Dr. Vilvarajah 
that BR was notified about the pharmacist call), with id. at 6, 21 
(prescriptions afterward by Respondent for methadone and Xanax), and 
id. at 6, 20 (same), and id. at 5, 18 (same), and id. at 4, 17 
(same), and id. at 3, 16 (same). For reasons discussed elsewhere in 
this decision, DI Phillips' observations regarding the possible 
commuting distance for Patient BR that she apparently gleaned from 
the Internet, Tr. 792-93, has not been sufficiently developed on the 
present record to be utilized for any purpose in this recommended 
decision.
---------------------------------------------------------------------------

    Loyd also found a red flag that, although BR's intake paperwork 
indicated that he was currently taking no medication,\72\ a UDS \73\ 
performed registered positive for marijuana metabolite and opiates. 
Tr. 191-93. There was no chart indication that an appropriate 
confrontation about this issue between physician and patient ever 
occurred.
---------------------------------------------------------------------------

    \72\ Gov't Ex. 42 at 55.
    \73\ Gov't Ex. 42 at 44.
---------------------------------------------------------------------------

    Dr. Loyd's report set forth the essence of his analysis as 
follows:

    [BR] was prescribed narcotics inappropriately. He had a trauma 
injury that may have required a controlled substance. However, his 
urine drug screens were negative for medication that he was being 
prescribed for his pain. He had a crescendo pattern of drug use with 
a progression to multiple drugs. . . .\74\
---------------------------------------------------------------------------

    \74\ Although Dr. Loyd also mentioned that he attached some 
level of significance to his observation that BR did not participate 
in recommended physical therapy, Tr. 185-86, as discussed elsewhere 
in this decision, see supra note 42, this aspect of his review is 
critically diminished by Loyd's acknowledgement that he is 
unfamiliar with the office protocol regarding referrals and follow-
up. Tr. 58-62. Similarly, although in his report and initial 
testimony Dr. Loyd felt that the patient's continued ability to 
pursue physically arduous employment while simultaneously 
registering complaints of significant pain constituted a red flag, 
he subsequently retreated from that position. Tr. 195-97.

Gov't Ex. 57 at 10.

Patient MC

    The MC chart \75\ was reviewed by DI Phillips, was received in 
evidence for review by this tribunal,\76\ and was evaluated by Dr. 
Loyd. Dr. Loyd testified that although chart indicators supported the 
utilization of controlled substance pain agents, Tr. 83-85, the 
Respondent incorrectly continued to prescribe controlled substances to 
MC, even after encountering multiple UDS anomalies with no 
documentation supporting any evidence that an appropriate patient 
confrontation took place.\77\ Tr. 78-80. Even though MC's patient chart 
shows three UDS reports which were negative for opiates that were 
prescribed, according to Loyd's report, ``[t]here were no questions 
raised as to why the screens were negative and the possibility of 
diversion was not mentioned.'' Gov't Ex. 57 at 3. Based on the 
uninterrupted controlled substance prescribing without probing 
confrontation, Dr. Loyd opined that the Respondent's controlled 
substance prescribing regarding Patient MC was not within the usual 
course of a professional practice. Tr. 86.
---------------------------------------------------------------------------

    \75\ See Gov't Ex. 25.
    \76\ Compare Gov't Ex. 25 at 50 (UDS anomaly negative for 
prescribed opioids), with id. at 13, 37 (prescriptions afterward by 
Respondent for OxyContin and Percocet with note authored by her ``no 
evidence of addiction''), and id. 13 (same); compare id. at 48 (UDS 
anomalies positive for PCP and negative for prescribed opioids), 
with id. at 9, 28 (prescriptions afterward by Respondent for 
OxyContin and Percocet), and id. at 9, 27 (same), and id. at 8, 26 
(same), and id. at 7-8 (same); compare id. at 47 (UDS anomaly 
negative for prescribed opioids and note on report by Dr. Vilvarajah 
remarking same), with id. at 6, 22 (prescriptions afterward by 
Respondent for OxyContin and Percocet and chart entry to 
``[c]ontinue present pain regime''), and id. at 4, 18 (prescriptions 
same).
    \77\ While Dr. Loyd testified that he would have preferred to 
see additional evidence of development of a potential psychological 
issue stemming from a traumatic event raised by MC's history, Tr. 
82-83, 85-86, there was insufficient development of this issue to 
put it to useful purpose in a disposition of the issues relevant to 
this case.
---------------------------------------------------------------------------

Patient MF

    The MF patient chart \78\ was reviewed by DI Phillips, was received 
in evidence for review by this tribunal,\79\ and was evaluated by Dr. 
Loyd. Dr. Loyd testified that the chart maintained on Patient MF 
demonstrated both a crescendo pattern

[[Page 47767]]

of controlled substance use and multiple UDS anomalies, neither of 
which received the benefit of an appropriate confrontation conference 
with the patient.\80\ Tr. 89-94. According to Dr. Loyd's report, the 
chart showed three UDS reports that were negative for prescribed 
controlled substances that had been prescribed to [MF] and should have 
registered positive, and that ``[n]o questioning took place as to why 
these screens didn't show the drugs [MF] was supposed to be taking[,] 
and the possibility of diversion was not raised.'' Gov't Ex. 57 at 4. 
Regarding a subsequent UDS that reflected a positive result for 
methadone, a drug that had not been prescribed to Patient MF, the 
report noted that the patient's explanation that she had fallen out of 
bed and taken her husband's medication was an unacceptable explanation 
which only showed a violation of the law and her medication pain 
agreement. Id.
---------------------------------------------------------------------------

    \78\ See Gov't Ex. 29.
    \79\ Compare Gov't Ex. 29 at 48 (UDS anomalies negative for 
prescribed opioids and benzodiazepines), with id. at 9, 29 
(prescriptions afterward by Respondent for OxyContin 20mg, OxyContin 
40mg, and Xanax); compare id. at 46 (UDS anomaly negative for 
prescribed benzodiazepines), with id. at 5 (chart entry by 
Respondent ``Lab results discussed with patient and copy given. 
P[atien]t's mother died a w[ee]k ago and the next day after the 
funeral, her father fell and got a head concussion [illegible] was 
released yesterday. P[atien]t feel (sic) overwhelmed [with] all 
these problems.''), and id. at 4-5, 21 (prescriptions by Respondent 
after UDS and concurrent with chart entry for OxyContin, Percocet, 
and Xanax), and id. at 4, 19 (same prescriptions), and id. at 3, 17 
(same prescriptions).
    \80\ Dr. Loyd also discussed a letter in the patient chart from 
MF's attorney detailing an interaction with police wherein her 
medication was seized, and asking that her medication be replaced. 
Tr. 95-99; Gov't Ex. 57 at 4. There was some level of confusion 
regarding the date of the letter, Tr. 280-82, 314-15, and 
insufficient development of the issue to reliably divine an 
appropriate utilization of this incident for a relevant issue in the 
case.
---------------------------------------------------------------------------

    Regarding the Respondent's controlled substance prescribing to MF, 
Dr. Loyd acknowledged that narcotics were appropriate for this patient 
based on the chart,\81\ but opined that ``[t]he controlled substances 
prescribed in th[is] case were inappropriate in strength and frequency 
while obvious signs of misuse of controlled substances were ignored,'' 
Tr. 101.
---------------------------------------------------------------------------

    \81\ Tr. 102.
---------------------------------------------------------------------------

    DI Phillips' testimony identified a drug screen report that 
reflected positive results for methadone and propoxyphene, two 
substances that were not prescribed to Patient MF by either the 
Respondent or Dr. Vilvarajah, and a negative result for 
benzodiazepines, which had been prescribed to MF in the form of Xanax a 
month prior to the test. Tr. 756-57; Gov't Ex. 29 at 14 (chart entry 
noting prescriptions issued September 14, 2005), 51 (UDS report dated 
October 12, 2005). As acknowledged by DI Phillips, in a chart note, the 
Respondent recorded that she confronted and admonished MF about her 
unauthorized methadone use. Tr. 841; see Gov't Ex. 29 at 13. It was 
also DI Phillips' testimony that other than reading on to check for 
patient compliance with the Respondent's warning, she declined to make 
a judgment call on the sufficiency of the Respondent's actions 
here,\82\ Tr. 845-46, but did note that there was nothing to indicate 
that the positive propoxyphene elicited any documented reaction from 
the Respondent. Tr. 841. Regarding MF's explanation that she took her 
husband's methadone after a spill out of bed, Phillips opined that 
beyond Dr. Loyd's estimation that the excuse was wanting, the scenario 
was not merely indicative of a red flag, but constituted an admission 
of actual diversion. Tr. 89-90. What is more, as highlighted in the 
Government's brief and similar to the unexplained presence of 
propoxyphene, no effort was documented to confront Patient MF regarding 
the absence of Xanax (which had been prescribed) from her system. See 
Gov't Br. at 17. Later drug screens in the record support the continued 
practice of the Respondent to prescribe controlled substances to 
Patient MF in the face of red flags and without raising them with the 
patient.
---------------------------------------------------------------------------

    \82\ Undoubtedly a prudent course in view of her lack of medical 
training.
---------------------------------------------------------------------------

Patient TH

    The TH chart \83\ was reviewed by DI Phillips, was received in 
evidence for review by this tribunal,\84\ and was evaluated by Dr. 
Loyd. In his testimony and in his report, Dr. Loyd observed that the 
chart maintained on Patient TH reflected several red flags. A UDS 
administered at the time of intake showed positive for cocaine. Gov't 
Ex. 57 at 5; Gov't Ex. 33 at 13, 49. The chart does record a 
confrontation of sorts on this issue, wherein TH apparently explained 
his use as a method to ``deal with the pain.'' Gov't Ex. 33 at 13. 
However, during his testimony, Dr. Loyd explained that while direct 
application of cocaine could cause some level of local, topical 
numbing, the ingestion of cocaine has no pain relieving feature. Tr. 
289-90. Inasmuch as the offered explanation (that the patient was using 
cocaine to ameliorate pain symptoms) has no medically reasonable basis, 
the note documenting the patient's statement in the chart can hardly be 
reasonably perceived as a valid explanation of a UDS anomaly produced 
by the investigation of a serious registrant.
---------------------------------------------------------------------------

    \83\ See Gov't Ex. 33.
    \84\ Compare Gov't Ex. 33 at 49-50 (UDS anomaly positive for 
cocaine), and id. at 48 (UDS anomalies negative for prescribed 
opioids and benzodiazepines), with id. at 13 (prescriptions 
afterward by Respondent for OxyContin 20 mg, OxyContin 40 mg, Tylox, 
and Xanax and chart note by Respondent noting Patient TH took 
cocaine to try to ``deal'' with the pain but absence of explanation 
for negative prescribed opioids and benzodiazepines result), and id. 
at 12 (same), and id. at 12, 40 (same), and id. at 11, 39 (same); 
compare id. at 45 (UDS anomaly positive for marijuana), with id. at 
7, 42 (chart entry by Dr. Vilvarajah to repeat UDS because of 
possible false positive due to TH's denial of marijuana use and 
claim of taking several antacids, but no verification of claim and 
drug test not repeated until eight months later; entry also notes 
that TH should attend substance abuse classes and proof of 
attendance and completion is expected, but no follow up indicated in 
chart), and id. at 5, 20 (prescriptions afterward by Respondent for 
OxyContin, Tylox, and Xanax), and id. at 4, 19 (same), and id. at 3-
4, 18 (same), and id. at 15 (same).
---------------------------------------------------------------------------

    Dr. Loyd also described a subsequent positive marijuana UDS result, 
Gov't Ex. 33 at 45, as well as negative drug screens that failed to 
show the presence of controlled substances the patient had been 
prescribed, Gov't Ex. 57 at 5; Tr. 104-06. Loyd opined that the chart 
reflected inadequate follow up measures,\85\ that there was no sign of 
the required patient confrontation on the issues, and that the 
prescribing of controlled substances should have been abated upon the 
second UDS that reflected an illicit substance. Tr. 107. In his report, 
Dr. Loyd noted a two-year period of treatment that was devoid of 
physical exams and imaging reports, and noted that
---------------------------------------------------------------------------

    \85\ Although a chart entry concerning the positive marijuana 
result reads, ``Takes several antacids possible false (+) will 
repeat [drug screen],'' Gov't Ex. 33 at 7, Dr. Loyd testified that 
TH's chart did not reflect any prescription for the antacids that 
could cause false results for the marijuana metabolite. Tr. 107-08. 
Furthermore, although Dr. Loyd testified that a UDS should have been 
conducted a month after the positive UDS was discussed with TH, the 
patient was not retested for marijuana for another seven months. Tr. 
110-12; Gov't Ex. 33 at 42.

[d]uring this same two[-]year period [TH] had two other [UDSs] that 
were inappropriate for the medications that he was being prescribed 
[one that was] \86\ negative for [benzodiazepines] and opiates--he 
was supposed to be taking both and [another that was] negative for 
opiates [that] he was supposed to be taking. No questioning took 
place as to why these were negative and about the possibility of 
diversion.
---------------------------------------------------------------------------

    \86\ Dr. Loyd corrected a UDS date in his testimony. Tr. 113.
---------------------------------------------------------------------------

Gov't Ex. 57 at 5.

    Dr. Loyd testified that while he takes no professional issue 
with the decision to prescribe controlled substances based on the 
chart findings, the prescriptions were not within the usual course 
of a professional practice in that ``[t]he strengths and frequency 
were inappropriate given the history, physical examination and 
imaging findings and the [UDSs] being inconsistent [was] ignored. 
Tr. 102. In his report, Dr. Loyd stated that TH

was prescribed scheduled drugs in quantities and frequency [sic] 
inappropriate for his complaint or illness. He lacked physical exam 
findings or imaging results to support the use of chronic narcotics. 
[TH] had a crescendo pattern of drug use with progression to 
multiple drugs. He had a history of active illicit drug use--cocaine 
and marijuana. He had multiple, inconsistent drug screens that were 
not questioned. The controlled substances prescribed in [TH's] case 
were outside the scope of accepted

[[Page 47768]]

medical practice and not for a legitimate medical purpose.

Gov't Ex. 57 at 5.

Patient RW

    The RW chart \87\ was reviewed by DI Phillips, was placed in 
evidence for review by this tribunal,\88\ and was evaluated by Dr. 
Loyd. Dr. Loyd's report and testimony addressed his analysis of the 
chart maintained on Patient RW. Dr. Loyd observed that the intake 
processes for this patient contained an insufficient history and 
physical examination and that there was no indication that a substance 
abuse history was elicited. Gov't Ex. 57 at 12. Loyd noted three UDS 
results that failed to reflect the presence of controlled substances 
that had been prescribed and should have been in RW's system. Id.; Tr. 
210-12.
---------------------------------------------------------------------------

    \87\ See Gov't Ex. 50.
    \88\ Compare Gov't Ex. 50 at 34 (UDS anomaly negative for 
prescribed opioids), and id. at 9 (note by Dr. Vilvarajah following 
that Patient RW tested negative for prescribed medications), with 
id. at 9 (note immediately underneath by Respondent that RW has 
``[n]o side effects or evidence of addiction [and that RW] takes her 
medications regularly [and] feels better''), and id. at 8, 23 
(prescription afterward by Respondent for Percocet), and id. at 7, 
21 (same with increased dosage units).
---------------------------------------------------------------------------

    The report written by Dr. Loyd summarized his review of RW's chart 
as follows:

    [RW] was prescribed scheduled drugs in quantities and frequency 
[sic] inappropriate for her complaint or illness. She was prescribed 
narcotics on the first office visit without alternatives being tried 
and without a physical exam or imaging to support her complaint. No 
alcohol or drug history was taken. She requested drugs by name--
Oxycodone, Hydrocodone. She had urine drug screens that were 
inconsistent with the medication that she was being prescribed 
multiple times per day. The controlled substances prescribed in 
[RW's] case were outside the scope of accepted medical practice and 
not for a legitimate purpose.

Govt' Ex. 57 at 12; see also Tr. 212-13.

Patient LS

    The chart \89\ maintained on Patient LS was also reviewed by DI 
Stevens, was received in evidence for review by this tribunal,\90\ and 
was analyzed by Dr. Loyd in his report and in his testimony. Dr. Loyd 
noted that the LS patient chart evidenced three UDS reports reflecting 
negative results for controlled substance medications that had been 
prescribed, which should have been in the patient's system, and which 
did not inspire any manner of confrontation or inquiry. Gov't Ex. 57 at 
11; Tr. 202-05. Loyd also found it significant that the level of 
controlled substance medication remained stagnant for three years 
without benefit of further physical examination or imaging.\91\ Id.
---------------------------------------------------------------------------

    \89\ See Gov't Ex. 44.
    \90\ Compare Gov't Ex. 44 at 69 (UDS anomaly negative for 
prescribed opioids), with id. at 13, 39 (prescriptions afterward by 
Respondent for OxyContin, Percocet, and Xanax), and id. at 12 
(same); compare id. at 66 (UDS anomaly negative for prescribed 
opioids), with id. at 11, 36 (prescriptions afterward by Respondent 
for OxyContin, Percocet, and Xanax and chart entry documenting that 
drug screen results were discussed and a copy of the report was 
given to LS), and id. at 9, 31 (prescriptions same), and id. at 8, 
30 (same), and id. at 7-8, 29 (same); compare id. at 65 (UDS anomaly 
negative for prescribed opioids), with id. at 7, 28 (prescriptions 
afterward by Respondent for OxyContin, Percocet, and Xanax), and id. 
at 5, 26 (same), and id. at 5, 25 (same), and id. at 4, 23-24 
(same), and id. at 3-4, 22 (same).
    \91\ Although Dr. Loyd testified that in his view the level of 
the patient's complaints seemed inconsistent with his perceived 
severity of the MRI results, Tr. 199-200, it would be difficult (and 
in this case unnecessary) to tease out where his testimony in this 
regard constitutes a potential good-faith professional difference of 
medical opinions, from a departure from a registrant-related duty to 
minimilegitimate prescriptions. The latter concern is a proper focus 
of ze diversion by issuing only these proceedings, while the former 
presents an issue for a different venue. 21 C.F.R. Sec.  1306.04(a); 
see Gonzales v. Oregon, 546 U.S. 243, 270 (2006) (explaining that 
the CSA grants the Attorney General authority to regulate the 
practice of medicine ``insofar as it bars doctors from using their 
prescription-writing powers as a means to engage in illicit drug 
dealing and trafficking as conventionally understood [not the power] 
to regulate the practice of medicine generally''). Dr. Loyd's 
testimony that he would have commenced treatment of LS with an 
NSAID, Tr. 201-02, warrants like consideration.
---------------------------------------------------------------------------

    In his report, Dr. Loyd set forth his view on the controlled 
substance prescribing as follows:

    [LS] was prescribed scheduled drugs in quantities and frequency 
[sic] inappropriate for her illness. She had no physical exam 
findings or imaging to support the use of chronic narcotics. She was 
started on controlled substances, multiple, [sic] on the first 
office visit without alternatives being tried. . . Her complaint was 
dramatic and compelling, 9/10 pain, and was not supported with 
history, physical exam findings or imaging. She had three separate 
urine drug screens that were inappropriate for the medications that 
she was being prescribed indicating that she was not taking them as 
prescribed and raising the possibility of diversion. The controlled 
substances prescribed in this case were outside the scope of 
accepted medical practice and were not for a legitimate medical 
purpose.

Gov't Ex. 57 at 11; see Tr. 207.

Patient FH

    The patient chart \92\ maintained on Patient FH was reviewed by DI 
Stevens, was placed in evidence for review by this tribunal,\93\ and 
was analyzed by Dr. Loyd. In his report and testimony, Dr. Loyd noted 
that FH's chart reflects seven UDS reports that did not contain the 
controlled substance opioids and benzodiazepines that the patient had 
been prescribed, and no sign of the appropriate doctor-patient 
confrontation that should have occurred based on those incidents. Gov't 
Ex. 57 at 6; Tr. 134-37. Although a potentially painful rib fracture 
was among the possible etiologies of the pain symptoms, FH declined to 
obtain the chest x-ray directed by the Respondent. Tr. 129. 
Furthermore, Dr. Loyd testified that his review of the chart did not 
reveal ``anything from the history, the physical examination or imaging 
to support . . . a narcotic analgesic at any dose.'' Tr. 129.
---------------------------------------------------------------------------

    \92\ See Gov't Ex. 34.
    \93\ Compare Gov't Ex. 34 at 78 (UDS anomalies negative for 
prescribed opioids and benzodiazepines and positive for non-
prescribed propoxyphene), and id. at 76 (UDS anomalies negative for 
prescribed opioids and benzodiazepines, and id. at 75 (UDS anomalies 
negative for prescribed opioids and benzodiazepines), with id. at 
14, 47 (prescriptions afterward by Respondent for OxyContin, Lortab, 
and Xanax), and id. at 14, 46 (same); compare id. at 73 (UDS 
anomalies negative for prescribed opioids and benzodiazepines), and 
id. at 72 (UDS anomalies negative for prescribed opioids and 
benzodiazepines), with id. at 10, 38 (prescriptions after by 
Respondent for OxyContin, Lortab, and Xanax), and id. at 10 (same), 
and id. at 9 (same), and id. at 9, 36 (same); compare id. at 70 (UDS 
anomalies negative for prescribed opioids and benzodiazepines), with 
id. at 8, 34 (prescriptions afterward by Respondent for OxyContin, 
Lortab, Xanax), and id. at 32 (same), and id. at 30 (same), and id. 
at 6 (same with chart entry by Respondent ``Lab results discussed 
[with patient] and copy given. [Patient] states that he takes [sic] 
``runs out'' his medications every [month]. . . . No side effects. 
[Patient] aware that he must take his medication of to [sic] his 
visit to TPA. Will reject random [drug screen].''), and id. at 6, 29 
(same prescriptions), and id. at 5, 28 (same), and id. at 5, 27 
(same), and id. at 4, 25 (same).
---------------------------------------------------------------------------

    In his report, Dr. Loyd provides the following summary regarding 
his chart analysis:

    [FH] was prescribed controlled substances in quantities and 
frequency [sic] inappropriate for his illness. He was prescribed 
narcotics on the first office visit. He lacked physical exam 
findings or imaging to support the indication of controlled 
substances.\94\ He had a crescendo pattern of

[[Page 47769]]

drug use with progression to multiple drugs. He seemed to have no 
interest in his diagnosis as he didn't follow up and obtain a chest 
x-ray. He had seven inconsistent urine drug screens. The controlled 
substances prescribed in [FH's] case were outside the scope of 
accepted medical practice and not for a legitimate medical purpose.
---------------------------------------------------------------------------

    \94\ Although Dr. Loyd testified that, consistent with the 
guidance provided in the WHO Ladder, he would have initiated a 
course of NSAIDs, Tr. 118-21, there is no basis on the current 
record upon which this apparent difference of medical opinion can be 
construed to reflect positively or negatively on whether the 
Respondent failed in some way to discharge her duties as a DEA 
registrant to minimize the risk of diversion and issue controlled 
substance prescriptions for a legitimate medical purpose and within 
the course of a professional practice. See 21 C.F.R. Sec.  
1306.04(a); Gonzales v. Oregon, 546 U.S. 243, 270 (2006) (explaining 
that the CSA grants the Attorney General authority to regulate the 
practice of medicine ``insofar as it bars doctors from using their 
prescription-writing powers as a means to engage in illicit drug 
dealing and trafficking as conventionally understood [not the power] 
to regulate the practice of medicine generally''). This is a 
difference, albeit a nuanced one, from Dr. Loyd's conclusion that 
the objective imaging, information, and documented observations in 
the chart do not support the utilization of controlled substances.

Gov't Ex. 57 at 6. During his testimony, Dr. Loyd affirmed his view 
that the controlled substance prescribing practices demonstrated in 
LC's chart were outside the scope of accepted medical practice, were 
not for a legitimate medical purpose, and were not within the usual 
course of a professional practice. Tr. 141-42.

Patient DP

    Dr. Loyd's report and testimony also outlined his review of the 
patient chart \95\ maintained on DP. Loyd's assessment was that DP's 
medical history, which included a right-leg crush injury (from a 500-
pound boulder), multiple resultant surgeries, and reflex sympathetic 
dystrophy (described by Loyd as ``very painful and debilitating''), Tr. 
171, justified the utilization of controlled pain medication. In fact, 
Dr. Loyd's report contains his conclusion that ``[t]he narcotics 
prescribed in [DP's] case were for a legitimate medical condition and 
[] were used within the scope of accepted medical practice.'' Gov't Ex. 
57 at 9.
---------------------------------------------------------------------------

    \95\ See Gov't Ex. 41.
---------------------------------------------------------------------------

    That said, Dr. Loyd also noted that the chart contained three UDS 
reports which reflected that prescribed controlled pain medications 
that should have been present in DP's system were not, and that the 
chart is devoid of any indication that the patient was confronted about 
a single one.\96\ Id.; Tr. 172-73, 176.
---------------------------------------------------------------------------

    \96\ The Government also elicited some testimony regarding Dr. 
Loyd's estimation of the relative distance between DP's home and the 
Respondent's practice, Tr. 181-82, but the issue was not 
sufficiently developed to merit consideration on any issue to be 
decided in this case, and like other testimony relative to such 
distances, played no part in this recommended decision.
---------------------------------------------------------------------------

Patient ES

    DI Phillips also presented testimony regarding her review of the 
patient chart \97\ maintained on Patient ES. Phillips testified that 
she identified six anomalies connected to UDSs reports in the ES chart. 
Among those anomalies were testing positive for marijuana while testing 
negative for all other substances, including benzodiazepines and 
opiates following prescriptions for Xanax and two strengths of 
OxyContin, Tr. 722-23; testing negative for all substances, including 
those prescribed (twice), Tr. 725, 733-34; \98\ testing positive for 
methadone without a prescription from the Respondent's practice, Tr. 
728-29; testing negative for benzodiazepines following a prescription 
for Xanax, Tr. 731-33; and testing negative for opiates after being 
prescribed two forms of oxycodone, Tr. 739-40.\99\ Consistent with the 
aforementioned anomalies, Patient ES was supplied with prescriptions 
for controlled substances following them. See Tr. 724-30, 733, 735-45.
---------------------------------------------------------------------------

    \97\ See Gov't Ex. 43.
    \98\ At the visit following an all-negative drug screen on July 
21, 2004, the Respondent entered the following concurrent 
observations in the patient chart, dated August 18, 2004, that 
Patient ES is ``very anxious'' due to a divorce evolution and 
```runs out' of [medication] 3-4 days before visit,'' but that he 
also evidences ``[n]o side effects or evidence of addiction.'' Gov't 
Ex. 43 at 23. These assertions along with the negative drug screen, 
coexisting in somewhat of a tension with the Respondent's duties as 
a registrant charged with detecting addiction to those she 
prescribes controlled substances and verifying red flags, was 
noticed by the Government in its brief. See Gov't Br. at 11 n.13.
    \99\ Patient ES's medical chart reflects numerous prescriptions 
for the drug Adipex, which is a brand of phentermine, a Schedule IV 
controlled substance, prescribed to ES for weight loss. 21 C.F.R. 
Sec.  1308.14(e)(9) (2011); see, e.g., Gov't Ex. 43 at 20. For 
reasons that were not established at hearing or otherwise, the 
Government did not address these prescriptions in its case. 
Accordingly, they will play no role in the determination that must 
be made through this recommended decision.
---------------------------------------------------------------------------

Patient HGW

    DI Stevens reviewed the patient chart \100\ of HGW. DI Stevens 
identified nine UDS that contained anomalies, Gov't Ex. 48 at 161 
(dated February 14, 2003), 160 (dated March 14, 2003), 159 (dated April 
11, 2003), 157 (dated October 28, 2003), 148 (dated May 19, 2004), 147 
(dated March 29, 2005), 146 (dated May 24, 2005), 145 (dated November 
10, 2005), 142 (dated May 25, 2006), and one phone message dated 
December 21, 2005 from another pain management clinic seeking 
verification of information pertaining to Patient HGW as a new patient 
(indicating that HGW was doctor shopping on the Respondent's 
practice),\101\ id. at 15; see generally Tr. 449-75. Anomalies were 
identified by DI Stevens within each drug screen, yet the Respondent, 
undeterred, continued to supply the patient with increasing quantities 
and varieties of controlled substances. For instance, at the first 
visit, Patient HGW represented that he was not on any medications at 
all, Tr. 452; Gov't Ex. 48 at 181, yet his drug test came back with 
positive results for cocaine, marijuana, opiates, and benzodiazepines, 
Tr. 450; Gov't Ex. 48 at 161-62. HGW was tested again the next month 
(March 14, 2003) and a second positive marijuana result appeared on the 
drug screen report. Tr. 453; Gov't Ex. 48 at 160. The Respondent, 
despite both of these red flags, prescribed Percocet and Xanax on July 
31, 2003. Tr. 458; Gov't Ex. 48 at 130. In all, Patient HGW tested 
positive for marijuana four times while at the Respondent's practice. 
See Tr. 461; Gov't Ex. 48 at 148 (May 19, 2004 UDS), 147 (March 29, 
2005 UDS). There were even times identified in the HGW patient chart by 
DI Stevens that the Respondent continued to prescribe controlled 
substances following UDS results that were negative for all substances 
tested. See, e.g., Tr. 467, 469-70. Compare, Gov't Ex. 48 at 100-01 
(prescriptions dated October 8, 2004 for OxyContin, Xanax, and 
Percocet), and 145 (UDS dated November 10, 2005 reporting negative 
results for all substances examined), with 71 (controlled prescriptions 
issued December 8, 2005 by Respondent for OxyContin, Percocet, Xanax, 
and Halcion), and 15 (chart note dated December 8, 2005 reflecting 
issuance of controlled prescriptions, but silent regarding UDS 
anomaly). Even though each of these anomalous drug screens were noted 
in the patient chart, the Respondent doled out prescriptions for 
controlled substances to HGW after almost every one.
---------------------------------------------------------------------------

    \100\ See Gov't Ex. 48.
    \101\ Receiving prescriptions for controlled substances from 
other physicians was a violation of HGW's pain management contract 
with the Respondent. Gov't Ex. 48 at 178, para. 9.
---------------------------------------------------------------------------

Additional Patient Charts

    Other medical files were addressed by DI Phillips' testimony in an 
expedited fashion and were subjected to this tribunal's examination. 
According to Phillips, her review of each of these charts revealed that 
the Respondent continued to prescribe controlled substances without 
resolving UDS irregularities that presented red flags in need of 
further investigation or inquiry. This list of additional charts 
reviewed incorporated patients CE (Gov't Ex. 27),\102\ DF (Gov't Ex. 
28),\103\ EJ (Gov't Ex.

[[Page 47770]]

35),\104\ TK (Gov't Ex. 36),\105\ TP (Gov't Ex. 40),\106\ DP (Gov't Ex. 
41),\107\ and SY (Gov't Ex. 52).\108\
---------------------------------------------------------------------------

    \102\ Compare Gov't Ex. 27 at 24 (UDS anomalies negative for 
prescribed opioids and benzodiazepines and initialed by Respondent), 
and id. at 7 (chart entry by Respondent noting CE tested negative 
for her prescribed medications), with id. at 6, 14 (prescriptions 
afterward by Respondent for Lortab and Xanax), and id. at 6 (same), 
and id. at 5, 13 (same), and id. at 5, 12 (same), and id. at 4 
(same), and id. at 4 (same).
    \103\ Compare Gov't Ex. 28 at 37 (UDS anomaly negative for 
prescribed opioids), with id. at 8, 26 (prescriptions afterward by 
Respondent for OxyContin, Percocet, and Xanax and chart entry by 
Respondent ``no evidence of addiction''), and id. at 9, 25 (same), 
and id. at 10, 21 (same), and id. at 11, 20 (same).
    \104\ Compare Gov't Ex. 35 at 54 (pharmacy report supplied by 
Patient EJ, OxyContin 80 mg absent), with id. at 57 (new patient 
notes documenting purported prescription by prior practitioner for 
OxyContin 80 mg); compare id. at 59 (patient history intake form 
indicating Patient EJ denied ``nervous breakdown/depression/
anxiety''), with id. at 57 (new patient notes documenting complaints 
of anxiety and insomnia); compare id. at 46-47 (UDS anomalies 
positive for purportedly non-prescribed benzodiazepines and 
propoxyphene), with id. at 13, 36 (prescriptions afterward by 
Respondent for OxyContin, Oxy IR, and Xanax), and id. at 12, 35 
(same); compare id. at 44 (UDS anomaly negative for prescribed 
opioids and positive for non-prescribed propoxyphene), with id. at 
11, 33 (prescriptions afterward by Respondent for OxyContin 40 mg, 
OxyContin 5 mg, and Xanax), and id. at 10, 30 (same), and id. at 9, 
28 (same), and id. at 8 (same).
    \105\ Compare Gov't Ex. 36 at 34 (UDS anomalies positive for 
non-prescribed methadone), with id. at 9, 22 (prescriptions 
afterward by Respondent for OxyContin 40 mg, OxyContin 20 mg, and 
Xanax), and id. at 8, 21 (same), and id. at 7, 18 (same); compare 
id. at 32 (UDS anomalies negative for prescribed opioids and 
benzodiazepines), with id. at 5, 15 (prescriptions afterward by 
Respondent for OxyContin 20 mg, OxyContin 40 mg, and Ativan (brand 
name for lorazepam, a Schedule IV substance pursuant to 21 C.F.R. 
Sec.  1308.14(c)(28) (2011))).
    \106\ Compare Gov't Ex. 40 at 42 (UDS anomaly negative for 
prescribed opioids), with id. at 10, 22 (prescriptions afterward by 
Respondent for OxyContin and Percocet), and id. at 10, 23 (same), 
and id. at 9, 25 (same), and id. at 8, 27 (same); compare id. at 40 
(UDS anomaly negative for prescribed opioids and note written on 
report by Dr. Vilvarajah that Patient TP is ``negative for 
prescribed meds''), with id. at 7, 29 (prescriptions afterward by 
Respondent for OxyContin and Percocet), and id. at 6, 30 (same), and 
id. at 6, 31 (same).
    \107\ Compare Gov't Ex. 41 at 65 (UDS anomalies negative for 
prescribed methadone, opioids, and benzodiazepines), with id. at 15, 
53 (prescriptions afterward by Respondent for methadone, OxyContin 
40 mg, and Xanax), and id. at 14, 50 (same), and id. at 14, 49 (same 
with increase in dosage units for methadone), and id. at 13, 47 
(same); compare id. at 62 (UDS anomalies negative for prescribed 
opioids and benzodiazepines), with id. at 11, 42 (prescriptions 
afterward by Respondent for methadone, OxyContin 40 mg, OxyContin 80 
mg, and Xanax), and id. at 10, 39-40 (same), and id. at 9, 37 
(same), and id. at 7, 32 (prescriptions by Respondent for methadone, 
OxyContin 40 mg, Fioricet, and Xanax); compare id. at 60 (UDS 
anomaly negative for prescribed benzodiazepines), with id. at 6-7, 
30-31 (prescriptions afterward by Respondent for methadone, 
OxyContin 40 mg, Fioricet, and Xanax), and id. at 5, 26 (same), and 
id. at 4-5, 24 (same), and id. at 4, 22 (same).
    \108\ Compare Gov't Ex. 52 at 24-25 (UDS anomaly positive for 
non-prescribed propoxyphene), with id. at 4, 11 (prescriptions 
afterward by Respondent for MS Contin ER, Percocet, and Xanax). For 
reasons stated elsewhere in this recommended decision, DI Phillips' 
observations regarding patient commuter distances that she gleaned 
from the Internet, Tr. 788-90, were generally disputed in principle 
by Dr. Miller, Tr. 571, and have not been the subject of sufficient 
development in this record to be considered for any purpose.
---------------------------------------------------------------------------

    During his testimony, DI Stevens in like, summary fashion 
identified additional medical charts in which he found continued 
controlled substance prescribing in the face of at least one unresolved 
UDS anomaly. See Tr. 475-508. These additional charts, which were 
similarly parsed by this tribunal, corresponded to Patients LB (Gov't 
Ex. 22),\109\ RB (Gov't Ex. 23),\110\ JE (Gov't Ex. 26),\111\ PG (Gov't 
Ex. 30),\112\ BG (Gov't Ex. 31),\113\ EG (Gov't Ex. 32),\114\ SM (Gov't 
Ex. 37),\115\ MM (Gov't Ex. 38),\116\ WS (Gov't Ex. 45),\117\ AT (Gov't

[[Page 47771]]

Ex. 46),\118\ TW (Gov't Ex. 49),\119\ and AW (Gov't Ex. 51).\120\
---------------------------------------------------------------------------

    \109\ Compare Gov't Ex. 22 at 35 (UDS anomalies negative for 
prescribed opioids and benzodiazepines and positive for non-
prescribed propoxyphene), with id. at 5 (prescriptions afterward by 
Respondent for OxyContin, Percocet, and Xanax), and id. at 5, 16 
(same), and id. at 4, 14 (same), and id. at 3, 13 (same with 
increased dosage units).
    \110\ Compare Gov't Ex. 23 at 45 (UDS anomaly negative for 
opiates and benzodiazepines), with id. at 13, 37 (prescriptions 
afterward by Respondent for Xanax and Lortab); compare id. at 43 
(UDS anomaly negative for prescribed opioids and benzodiazepines), 
with id. at 8, 31 (prescriptions afterward by Respondent for Lortab 
and Xanax), and id. (same), and id. (same).
    \111\ It was revealed on cross-examination that the chart for 
Patient JE did not possess a true drug screen anomaly. DI Stevens 
misidentified a prescription for Xanax that he believed was issued 
before the UDS (and therefore should have caused a positive result 
for benzodiazepines), but due to an administrative error on the part 
of the Respondent, the wrong date was transcribed onto the 
prescription. See Tr. 480, 530-38. Compare Gov't Ex. 26 at 8 (UDS at 
initial office visit with collection date November 19, 2004), with 
10 (photocopy of prescription for Xanax dated November 9, 2004 
depicted next to prescription for OxyContin dated November 19, 
2004). Still, this oversight, due in part by an error made by the 
Respondent, is not so significant as to outweigh the assertions made 
by DI Stevens in his testimony that the other patient files 
contained one or more drug screen anomalies that were trailed by 
additional quantities of controlled substances being supplied to 
each patient.
    \112\ Compare Gov't Ex. 30 at 55 (January 28, 2006 UDS anomalies 
negative for prescribed opioids and positive for non-prescribed 
methadone), and id. at 11 (February 11, 2006 chart entry by 
Respondent that drug screen was positive for methadone and PG is on 
Roxicodone), and id. (February 25, 2006 chart entry by Dr. 
Vilvarajah noting that PG had unused methadone from a prescription 
he received back in April 2005 and that PG is against surgical 
measures), with id. at 9, 32-33 (prescriptions afterward by 
Respondent five months after UDS for MS Contin, Xanax, and 
Roxicodone), and id. at 8, 30 (same for the month subsequent); 
compare id. at 54 (UDS anomaly negative for prescribed 
benzodiazepines), with id. at 7-8, 29 (prescriptions afterward by 
Respondent for MS Contin, Roxicodone, and Xanax), and id. at 7, 27-
28 (same plus Ambien), and id. at 6, 25-26 (same).
    \113\ Compare Gov't Ex. 31 at 44 (UDS anomaly negative for 
prescribed benzodiazepines), with id. at 10, 28 (prescriptions 
afterward by Respondent for OxyContin, hydrocodone, and Xanax), and 
id. at 10, 27 (same), and id. at 9, 26 (same), and id. at 9, 25 
(same), and id. at 8, 24 (same); compare id. at 41 (UDS anomaly 
negative for prescribed benzodiazepines), with id. at 8, 23 
(prescriptions afterward by Respondent for OxyContin, hydrocodone, 
and Xanax), and id. at 7, 22 (same), and id. at 7, 21 (same), and 
id. at 6, 20 (same), and id. at 6, 19 (same); compare id. at 42 (UDS 
anomaly negative for prescribed benzodiazepines), with id. at 4, 16 
(prescriptions afterward by Respondent for OxyContin, hydrocodone, 
and Xanax).
    \114\ Compare Gov't Ex. 32 at 78 (UDS anomaly negative result 
for prescribed benzodiazepines), with id. at 18-19, 58 
(prescriptions by Respondent afterward for OxyContin, Lortab, and 
Xanax and chart note ``[n]o side effects or evidence of 
addiction''), and id. at 18 (same); compare id. at 17 (chart entry 
noting pharmacy informed Respondent's practice that Patient EG 
filled prescription by another doctor for Xanax indicating doctor 
shopping and violation of pain management contract), with id. at 17, 
55 (prescriptions afterward by Respondent for OxyContin and Lortab); 
compare id. at 76 (UDS anomaly negative result for prescribed 
opioids), with id. at 16, 54 (prescriptions afterward by Respondent 
for OxyContin and Lortab), and id. at 16, 53 (same), and id. at 15, 
50 (same), and id. at 15, 49 (same); compare id. at 75 (UDS anomaly 
positive for non-prescribed benzodiazepines), with id. at 13, 46 
(prescriptions by Respondent afterward for OxyContin and Lortab), 
and id. at 13, 45 (same), and id. at 12 (same), and id. (same), and 
id. at 10, 41 (same); compare id. at 72 (UDS anomaly positive for 
non-prescribed benzodiazepines), with id. at 6-7, 34 (prescriptions 
afterward by Respondent for OxyContin and Lortab), and id. at 5, 32 
(same).
    \115\ Compare Gov't Ex. 37 at 45 (UDS anomaly negative for 
prescribed opioids and benzodiazepines), with id. at 6, 15 
(prescriptions afterward by Respondent for OxyContin, Percocet, and 
Xanax), and id. at 5, 14 (same); compare id. at 43 (UDS anomalies 
negative for prescribed opioids and benzodiazepines), with id. at 4-
5, 13 (prescriptions afterward by Respondent for OxyContin, 
Percocet, and Xanax).
    \116\ Compare Gov't Ex. 38 at 106 (patient history intake form 
indicating Patient MM denied ``nervous breakdown/depression/
anxiety''), with id. at 105 (new patient notes documenting 
complaints of anxiety and insomnia); compare id. at 97 (UDS anomaly 
negative for prescribed benzodiazepines), with id. at 20, 77 
(prescriptions afterward by Respondent for OxyContin, Lortab, and 
Xanax), and id. at 19, 76 (same), and id. at 18, 73 (same), and id. 
at 18, 72 (same), and id. at 17-18, 71 (same); compare id. at 94 
(UDS anomaly negative for prescribed benzodiazepines), with id. at 
17, 69 (prescriptions afterward by Respondent for OxyContin, Lortab, 
and Xanax), and id. at 16, 65-66 (same), and id. at 16, 63 (same), 
and id. at 15 (same), and id. at 14, 56-57 (same); compare id. at 93 
(UDS anomaly negative for prescribed benzodiazepines), with id. at 
14, 54 (prescriptions afterward by Respondent for OxyContin, Lortab, 
and Xanax), and id. at 13, 53 (same), and id. at 11, 45-46 (same); 
compare id. at 91 (UDS anomaly negative for prescribed 
benzodiazepines), with id. at 8, 37 (prescriptions afterward by 
Respondent for OxyContin, Lortab, and Xanax), and id. at 8, 36 
(same), and id. at 7, 34 (same); compare id. at 90 (UDS anomaly 
negative for prescribed benzodiazepines), with id. at 6-7, 32-33 
(prescriptions afterward by Respondent for OxyContin, Lortab, and 
Xanax and chart entry, ``Lab results discussed [with patient and] 
copy given. . . . No side effects, no evidence of addiction.''), and 
id. at 6, 30 (same prescriptions), and id. at 4 (same 
prescriptions), and id. at 3-4, 23 (same prescriptions).
    \117\ Compare Gov't Ex. 45 at 36 (UDS anomalies negative for 
oxycodone despite purported prescription from prior practitioner for 
OxyContin and positive for hydromorphone despite absence of claim 
for prior prescription of same), with id. at 35, 36 (prescriptions 
afterward by Respondent for OxyContin and Roxicodone). Hydromorphone 
is a Schedule II controlled substance pursuant to 21 C.F.R. Sec.  
1308.12(b)(1)(vii) (2011).
    \118\ Compare Gov't Ex. 46 at 59 (UDS anomalies positive for 
non-prescribed barbiturates and negative for prescribed opioids and 
benzodiazepines), and id. at 57 (UDS anomalies positive for cocaine 
and marijuana), with id. at 7, 32 (prescriptions afterward by 
Respondent for OxyContin 40 mg, Lortab, and Xanax); compare id. at 
55 (UDS anomaly negative for prescribed opioids), with id. at 6, 29-
30 (prescriptions afterward by Respondent for OxyContin 20 mg, 
OxyContin 40 mg, Lortab, and Xanax), and id. at 5, 28 (same less 
OxyContin 20 mg), and id. at 5, 27 (same).
    \119\ Compare Gov't Ex. 49 at 111 (UDS anomaly positive for 
cocaine), and id. at 110 (UDS anomaly negative for prescribed 
benzodiazepines), and id. at 106 (UDS anomaly positive for cocaine, 
negative for prescribed opioids), and id. at 104 (UDS anomaly 
negative for prescribed opioids), and id. at 11 (chart entry by 
Respondent that Patient TW admitted she was taking some of her 
husband's medications ``to `function''' after not visiting the 
practice for seven months due to birth of baby), with id. at 11, 52 
(prescriptions afterward by Respondent for Percocet and Xanax 
contemporaneous with her chart entry about taking husband's 
medications). Evidence of record further demonstrates that the 
Respondent prescribed additional controlled substances at later 
office visits; however, those prescriptions followed drugs screens 
that were either consistent with the period of absence from the 
clinic (i.e., negative for all substances tested) or were consistent 
with prescribed opioids and benzodiazepines. While there were also 
two other drug screens that lacked anomalies, they were scattered 
among the string of anomalous UDS reports, and the Respondent's 
(one) cited prescription set was in the face of at least two red 
flags that were not addressed (a UDS with negative result for 
prescribed opioids and an admission of taking husband's medications 
without confrontation, admonishment, or inquiry into whether they 
were controlled).
    \120\ Patient AW is the individual that was interviewed by 
former ACA Guindi. Regarding her chart, compare Gov't Ex. 51 at 14 
(UDS anomaly negative for benzodiazepines despite purported 
prescription by prior practitioner for Xanax), with id. at 12-13 
(prescriptions afterward by Respondent for methadone and OxyContin), 
and id. at 10-11 (same with doubled dosage units for methadone), and 
id. at 6, 8 (same with doubled dosage units again for methadone), 
and id. at 6-7 (same), and id. at 2, 4 (prescriptions by Respondent 
for OxyContin, Percocet, and Xanax).
---------------------------------------------------------------------------

    Other evidence required for a disposition of this issue is set 
forth in the analysis portion of this decision.

The Analysis

    The Administrator \121\ is authorized to deny a COR application 
when convinced that the registrant has been convicted of a felony under 
the CSA or any state law relating to a controlled substance. 21 U.S.C. 
Sec.  824(a)(2) (2006). It is undisputed in this case that the 
Respondent has been convicted of a Kentucky state crime relating to 
controlled substances.
---------------------------------------------------------------------------

    \121\ This authority has been delegated pursuant to 28 C.F.R. 
Sec. Sec.  0.100(b) and 0.104 (2011).
---------------------------------------------------------------------------

    Pursuant to 21 U.S.C. Sec.  823(f) (2006 & Supp. III 2010), the 
Administrator may deny an application for a DEA COR if persuaded that 
the issuance of such a registration would be inconsistent with the 
public interest. The following factors have been provided by Congress 
in determining ``the public interest:''
    (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.
    (5) Such other conduct which may threaten the public health and 
safety.
    21 U.S.C. Sec.  823(f).
    ``[T]hese factors are considered in the disjunctive.'' Robert A. 
Leslie, M.D., 68 Fed. Reg. 15227, 15230 (2003). Any one or a 
combination of factors may be relied upon, and when exercising 
authority as an impartial adjudicator, the Administrator may properly 
give each factor whatever weight she deems appropriate in determining 
whether an application for a registration should be denied. Id.; David 
H. Gillis, M.D., 58 Fed. Reg. 37507, 37508 (1993); see Morall v. DEA, 
412 F.3d 165, 173-74 (D.C. Cir. 2005); Joy's Ideas, 70 Fed. Reg. 33195, 
33197 (2005); Henry J. Schwarz, Jr., M.D., 54 Fed. Reg. 16422, 16424 
(1989). Moreover, the Administrator is ``not required to make findings 
as to all of the factors.'' Hoxie v. DEA, 419 F.3d 477, 482 (6th Cir. 
2005); Morall, 412 F.3d at 173-74. The Administrator is not required to 
discuss consideration of each factor in equal detail, or even every 
factor in any given level of detail. Trawick v. DEA, 861 F.2d 72, 76 
(4th Cir. 1988) (Administrator's obligation to explain the decision 
rationale may be satisfied even if only minimal consideration is given 
to the relevant factors and remand is required only when it is unclear 
whether the relevant factors were considered at all). The balancing of 
the public interest factors ``is not a contest in which score is kept; 
the Agency is not required to mechanically count up the factors and 
determine how many favor the Government and how many favor the 
registrant. Rather, it is an inquiry which focuses on protecting the 
public interest. . . .'' Jayam Krishna-Iyer, 74 Fed. Reg. 459, 462 
(2009).
    In the adjudication of an application for a COR, the DEA has the 
burden of proving that the requirements for registration are not 
satisfied. 21 C.F.R. Sec.  1301.44(d) (2011). Where the Government has 
sustained its burden and established that an applicant has committed 
acts inconsistent with the public interest, that applicant must present 
sufficient mitigating evidence to assure the Administrator that he or 
she can be entrusted with the responsibility commensurate with such a 
registration. Steven M. Abbadessa, D.O., 74 Fed. Reg. 10077, 10078, 
10081 (2009); Medicine Shoppe-Jonesborough, 73 Fed. Reg. 364, 387 
(2008); Samuel S. Jackson, D.D.S., 72 Fed. Reg. 23848, 23853 (2007). 
Normal hardships to the practitioner, and even the surrounding 
community, which are attendant upon the denial of a registration are 
not a relevant consideration. Abbadessa, 74 Fed. Reg. at 10078; see 
also, Gregory D. Owens, D.D.S., 74 Fed. Reg. 36751, 36757 (2009). The 
Agency's conclusion that past performance is the best predictor of 
future performance has been sustained on review in the courts, Alra 
Labs. v. DEA, 54 F.3d 450, 452 (7th Cir. 1995), as has the Agency's 
consistent policy of strongly weighing whether a registrant who has 
committed acts inconsistent with the public interest has accepted 
responsibility and demonstrated that he or she will not engage in 
future misconduct. Hoxie, 419 F.3d at 483; see also Ronald Lynch, M.D., 
75 Fed. Reg. 78745, 78749 (2010) (Respondent's attempts to minimize 
misconduct held to undermine acceptance of responsibility); George 
Mathew, M.D., 75 Fed. Reg. 66138, 66140, 66145, 66148 (2010); George C. 
Aycock, M.D., 74 Fed. Reg. 17529, 17543 (2009); Abbadessa, 74 Fed. Reg. 
at 10078; Krishna-Iyer, 74 Fed. Reg. at 463; Medicine Shoppe, 73 Fed. 
Reg. at 387.
    While the burden of proof at this administrative hearing is a 
preponderance-of-the-evidence standard, see Steadman v. SEC, 450 U.S. 
91, 100-01 (1981), the Administrator's factual findings will be 
sustained on review to the extent they are supported by ``substantial 
evidence.'' Hoxie, 419 F.3d at 481. And while ``the possibility of 
drawing two inconsistent conclusions from the evidence'' does not limit 
the Administrator's ability to find facts on either side of the 
contested issues in the case, Shatz v. U.S. Dep't of Justice, 873 F.2d 
1089, 1092 (8th Cir. 1989); Trawick, 861 F.2d at 77, all ``important 
aspect[s] of the problem,'' such as a Respondent's defense or 
explanation that runs counter to the Government's evidence, must be 
considered. Wedgewood Vill. Pharmacy v. DEA, 509 F.3d 541, 549 (D.C. 
Cir. 2007); Humphreys, 96 F.3d at 663. The ultimate disposition of the 
case must be in accordance with the weight of the evidence, not simply 
supported by enough evidence to justify, if the trial were to a jury, a 
refusal to direct a verdict when the conclusion sought to

[[Page 47772]]

be drawn from it is one of fact for the jury. Steadman, 450 U.S. at 99 
(internal quotation marks omitted).
    Regarding the exercise of discretionary authority, the courts have 
recognized that gross deviations from past agency precedent must be 
adequately supported, Morall, 412 F.3d at 183, but mere unevenness in 
application does not, standing alone, render a particular discretionary 
action unwarranted. Chein v. DEA, 533 F.3d 828, 835 (D.C. Cir. 2008) 
(citing Butz v. Glover Livestock Comm'n Co., 411 U.S. 182, 188 (1973)), 
cert. denied, ---- U.S. ----, 129 S. Ct. 1033 (2009). It is well-
settled that since the Administrative Law Judge has had the opportunity 
to observe the demeanor and conduct of hearing witnesses, the factual 
findings set forth in this recommended decision are entitled to 
significant deference, Universal Camera Corp. v. NLRB, 340 U.S. 474, 
496 (1951), and that this recommended decision constitutes an important 
part of the record that must be considered in the Administrator's 
decision, Morall, 412 F.3d at 179. However, any recommendations set 
forth herein regarding the exercise of discretion are by no means 
binding on the Administrator and do not limit the exercise of that 
discretion. 5 U.S.C. Sec.  557(b) (2006); River Forest Pharmacy, Inc. 
v. DEA, 501 F.2d 1202, 1206 (7th Cir. 1974); Attorney General's Manual 
on the Administrative Procedure Act 8 (1947).

Factor 1: The Recommendation of the Appropriate State Licensing Board 
or Professional Disciplinary Authority

    In this case, it is undisputed that the Respondent holds a valid 
and current state license, albeit subject to the terms and conditions 
of a five-year probationary period, to practice medicine. Action taken 
by a state medical board is an important, though not dispositive, 
factor in determining whether the continuation of a DEA COR is 
consistent with the public interest. Patrick W. Stodola, M.D., 74 Fed. 
Reg. 20727, 20730 (2009); Jayam Krishna-Iyer, M.D., 74 Fed. Reg. 459, 
461 (2009). It is well-established Agency precedent that a ``state 
license is a necessary, but not a sufficient condition for 
registration.'' Robert A. Leslie, M.D., 68 Fed. Reg. 15227, 15230 
(2003); John H. Kennedy, M.D., 71 Fed. Reg. 35705, 35708 (2006). The 
considerations employed by, and the public responsibilities of, a state 
medical board in determining whether a practitioner may continue to 
practice within its borders are not coextensive with those attendant 
upon the determination that must be made by DEA relative to continuing 
a registrant's authority to handle controlled substances. Even the 
reinstatement of a state medical license does not affect the DEA's 
independent responsibility to determine whether a registration is in 
the public interest. Mortimer B. Levin, D.O., 55 Fed. Reg. 9209, 8210 
(1990). The ultimate responsibility to determine whether a registration 
is consistent with the public interest has been delegated exclusively 
to the DEA, not to entities within state government. Edmund Chein, 
M.D., 72 Fed. Reg. 6580, 6590 (2007), aff'd, Chein v. DEA, 533 F.3d 828 
(DC Cir. 2008), cert. denied, ---- U.S. ----, 129 S. Ct. 1033 (2009). 
Congress vested authority to enforce the CSA in the Attorney General 
and not state officials. Stodola, 74 Fed. Reg. at 20375. As stated in 
Paul Weir Battershell, N.P., 76 Fed. Reg. 44359, 44365-66 (2011):

    [Precedent within the Agency] has repeatedly [recognized] that a 
practitioner's possession of state authority ``is not dispositive of 
the public interest inquiry.'' George Mathew, 75 Fed. Reg. 66138, 
66145 (2010) (citing Stodola, 74 Fed. Reg. at 20730 n.16; Leslie, 68 
Fed. Reg. at 15230). ``[T]''he [CSA] requires that the Administrator 
. . . make an independent determination [from that made by state 
officials] as to whether the granting of controlled substance 
privileges would be in the public interest.'' Levin, 57 Fed. Reg. at 
8681.

    Here, after a contested hearing on the merits, the Tennessee 
Medical Board found that the Respondent, in light of her criminal 
guilty plea, committed ``[u]nprofessional, dishonorable or unethical 
conduct,'' \122\ and was ``[c]onvict[ed] of an[] offense of state or 
federal drug laws . . . .'' \123\ Gov't Ex. 15 at 4. The Board restored 
the medical privileges that had been the subject of a prior emergency 
suspension,\124\ but sanctioned the Respondent with a five-year term of 
probation upon her license, coupled with specific monitoring and 
training requirements and a $1,000.00 civil penalty. Id. at 5.
---------------------------------------------------------------------------

    \122\ Tenn. Code Ann. Sec.  63-6-214(b)(1).
    \123\ Tenn. Code Ann. Sec.  63-6-214(b)(10).
    \124\ Gov't Ex. 14.
---------------------------------------------------------------------------

    While the action of a state medical board must be considered under 
Factor 1, a state's action pertaining to the Respondent's medical 
license or ability to handle controlled substances (falling short of an 
executed revocation) is not dispositive in DEA's determination 
regarding the appropriateness of a sanction. See Mathew, 75 Fed. Reg. 
at 66145 (wherein DEA declines to adopt as dispositive under Factor 1 
the state medical board's sanction of suspending respondent's medical 
license, then staying the suspension, in case where respondent was 
prescribing controlled substances without physically examining patients 
or maintaining medical records). On the one hand, the Tennessee Medical 
Board obviously concluded that it could discharge its responsibility to 
safeguard the public with something less than an outright revocation. 
On the other hand, the high level of required retraining and copious 
mandated monitoring hardly constitute a vote of confidence in the 
Respondent's abilities as a physician. Although the record contains no 
evidence that the Respondent has been non-compliant with the terms 
imposed by the state medical board, the relatively brief period of time 
that has passed since the issuance of the Medical Board's Order, and 
that by her own admission, the Respondent has not been practicing 
medicine to any degree since early 2009,\125\ do not allow for a 
meaningful extrapolation regarding the Respondent's level of compliance 
with the probationary terms over the duration of the probation.
---------------------------------------------------------------------------

    \125\ Tr. 1044.
---------------------------------------------------------------------------

    Thus, consideration of the evidence under this factor presents 
something of a mixed bag regarding the application and does not 
militate for or against revocation.

Factor 3: The Respondent's Conviction Record

Under Federal or State Laws Relating to the Manufacture, Distribution, 
or Dispensing of Controlled Substances

    As discussed elsewhere in this decision, the record reflects that 
the Respondent was convicted \126\ in a Kentucky state court of one 
count for the facilitation of trafficking of a controlled substance in 
the first degree. Stipulation F. Under Kentucky law:
---------------------------------------------------------------------------

    \126\ Pursuant to the terms of a plea agreement, the Respondent 
made an Alford plea to a single misdemeanor count of facilitation of 
trafficking in controlled substances in the first degree. 
Stipulation F. Consistent with the plea agreement provisions, other 
counts, including facilitating the activities of a criminal 
syndicate trafficking in controlled substances, second degree 
assault, and wanton endangerment, were dismissed in satisfaction. 
Id.

    A person is guilty of criminal facilitation when, acting with 
knowledge that another person is committing or intends to commit a 
crime, he engages in conduct which knowingly provides such person 
with means or opportunity for the commission of the crime and which 
---------------------------------------------------------------------------
in fact aids such person to commit the crime.

Ky. Rev. Stat. Ann. Sec.  506.080(1) (emphasis supplied). The object 
crime of the Respondent's guilty plea, first degree controlled 
substance trafficking, requires proof that the trafficker(s) (in this 
case, the facilitated individuals),

[[Page 47773]]

knowingly and unlawfully trafficked a controlled substance. Ky. Rev. 
Stat. Ann. Sec.  218A.1412(1). Kentucky includes distribution under the 
definition of trafficking,\127\ and the statutory definition of 
distribution is defined as ``to deliver other than by administering and 
dispensing a controlled substance.'' Ky. Rev. Stat. Ann. Sec.  
218A.010(10).
---------------------------------------------------------------------------

    \127\ Ky. Rev. Stat. Ann. Sec.  218A.010(42).
---------------------------------------------------------------------------

    The inchoate nature of criminal facilitation requires that resort 
be had to the conduct that established her guilt in determining whether 
her conviction relates to distributing or dispensing under this factor. 
The means of the Respondent's facilitation in the criminal matter was 
exclusively the writing of the controlled substance prescriptions that 
were utilized to secure the controlled substances trafficked by the 
facilitated patients. Inasmuch as the federal definition of 
``dispense'' under the CSA includes prescribing,\128\ and knowingly 
prescribing controlled substances to the facilitated traffickers 
defined her culpability under state law, it is clear that she was 
convicted of a state crime relating to the dispensing of controlled 
substances, and equally clear that consideration of the evidence under 
this factor, which supports a finding that actual diversion occurred, 
militates against granting the application.
---------------------------------------------------------------------------

    \128\ 21 U.S.C. Sec.  802(10); see also Ky. Rev. Stat. Ann. 
Sec.  218A.010(8) (Kentucky law to same effect).
---------------------------------------------------------------------------

Factors 2, 4, and 5: The Respondent's Experience in Dispensing 
Controlled Substances; Compliance With Applicable State, Federal, or 
Local Laws Relating to Controlled Substances; and Such Other Conduct 
Which May Threaten the Public Health and Safety

    In this case, the gravamen of the allegations in the OSC offered in 
opposition to the application, as well as the factual concentration of 
much of the evidence presented, share as a principal focus the manner 
in which the Respondent has managed that part of her practice relative 
to prescribing controlled substances and acts allegedly committed in 
connection with that practice that formed the basis of her state 
criminal conviction and her state medical board sanctions. Thus, it is 
analytically logical to consider public interest factors two, four, and 
five together. That being said, factors two and four involve analysis 
of both common and distinct considerations.
    Regarding Factor 2, in requiring an examination of a registrant's 
experience in handling controlled substances, Congress manifested an 
acknowledgement that the qualitative manner and the quantitative volume 
in which a registrant has engaged in the dispensing of controlled 
substances, and how long he or she has been in the business of doing 
so, are significant factors to be evaluated in reaching a determination 
as to whether he or she should be entrusted with a DEA COR. In some 
cases, viewing a registrant's actions against a backdrop of how she has 
performed activity within the scope of the certificate can provide a 
contextual lens to assist in a fair adjudication of whether continued 
registration is in the public interest.
    Evidence that a practitioner may have conducted a significant level 
of sustained activity within the scope of the registration for a 
sustained period is a relevant and correct consideration, which must be 
accorded due weight. However, the Agency has taken the reasonable 
position that this factor can be outweighed by acts held to be 
inconsistent with the public interest. Jayam Krishna-Iyer, 74 Fed. Reg. 
at 463. Experience which occurred prior or subsequent to proven 
allegations of malfeasance may be relevant. Evidence that precedes 
proven misconduct may add support to the contention that, even 
acknowledging the gravity of a registrant's transgressions, they are 
sufficiently isolated and/or attenuated that adverse action against his 
registration is not compelled by public interest concerns. Likewise, 
evidence presented by the Government that the proven allegations are 
congruous with a consistent past pattern of poor behavior can enhance 
the Government's case.
    In a similar vein, conduct which occurs after proven allegations 
can shed light on whether a registrant has taken steps to reform and/or 
conform his or her conduct to appropriate standards. Contrariwise, a 
registrant who has persisted in incorrect behavior, or made attempts to 
circumvent Agency directives, even after being put on notice, can 
diminish the strength of its case. Novelty, Inc., 73 Fed. Reg. 52689, 
52703 (2008), aff'd, 571 F.3d 1176 (DC Cir. 2009); Southwood Pharm., 
Inc., 72 Fed. Reg. 36487, 36503 (2007); John J. Fotinopoulous, 72 Fed. 
Reg. 24602, 24606 (2007).
    In Jayam Krishna-Iyer, 74 Fed. Reg. at 463, DEA policy regarding 
this aspect of the public interest determination was clarified. The 
decision in that case acknowledged the reality that even a significant 
and sustained history of uneventful practice under a DEA certificate 
can be offset by proof that a registrant has committed acts 
inconsistent with the public interest. Id.; see also Jeri Hassman, 
M.D., 75 Fed. Reg. 8194, 8235 (2010) (acknowledging Agency precedential 
rejection of the concept that conduct which is inconsistent with the 
public interest is rendered less so by comparing it with a respondent's 
legitimate activities which occurred in substantially higher numbers); 
Paul J. Cargine, Jr., 63 Fed. Reg. 51592, 51560 (1998) (``[E]ven though 
the patients at issue are only a small portion of Respondent's patient 
population, his prescribing of controlled substances to these 
individuals raises serious concerns regarding [his] ability to 
responsibly handle controlled substances in the future.''). In the 
context of a pharmacy registrant, Agency precedent has consistently 
held that even a significant level of legitimate dispensing cannot 
offset flagrant violations. See, e.g., Medicine Shoppe-Jonesborough, 73 
Fed. Reg. 364, 386 & n.56 (2008).
    The Agency, in its administrative precedent (notwithstanding what 
might be perceived as an arguable lack of at least readily-apparent 
ambiguity employed by Congress in the language of the statute),\129\ 
has further curtailed the scope of Factor 2. The Agency's current view 
regarding Factor 2 is that while evidence of a registrant's experience 
handling controlled substances may be entitled to some weight in 
assessing whether errant practices have been reformed, it is entitled 
to no weight where a practitioner fails to acknowledge wrongdoing. 
Cynthia M. Cadet, M.D., 76 Fed. Reg. 19450 n.3 (2011); Roni Dreszer, 
M.D., 76 Fed. Reg. 19434 n.3 (2011); Michael J. Aruta, M.D., 76 Fed. 
Reg. 19420 n.3 (2011); Jacobo Dreszer, M.D., 76 Fed. Reg. 19386-87 n.3 
(2011).
---------------------------------------------------------------------------

    \129\ See Chevron U.S.A., Inc. v. Natural Resources Defense 
Council, Inc., 467 U.S. 837 (1984) for the two-step process 
constructed by the United States Supreme Court regarding the 
deference afforded to an agency in interpreting a statute it is 
charged to administer.
    First . . . . [i]f the intent of Congress is clear, that is the 
end of the matter; for the . . . agency[] must give effect to the 
unambiguously expressed intent of Congress. . . . [I]f the statute 
is silent or ambiguous with respect to the specific issue, the 
question for the court is whether the agency's answer is based on a 
permissible construction of the statute.''
    467 U.S. at 842-43.
---------------------------------------------------------------------------

    As discussed in more detail infra, inasmuch as the Respondent has 
accepted no measure of responsibility for her actions in this case, 
Agency precedent diminishes the availability of any consideration of 
those elements of her prior practice that reflect past compliance, 
ability, or competence in the handling of controlled substances.\130\
---------------------------------------------------------------------------

    \130\ However, the Respondent's evidence in this regard would 
not have altered the result in her favor, even if the Agency 
precedent was otherwise. Beyond the Respondent's representations 
that she has practiced uneventfully, the record contains no evidence 
regarding her experience as a registrant prior to her current 
difficulties that would tend to shift the balance of the equities in 
favor of granting a registration. There is no evidence from peers, 
former supervisors, or other medical professionals that would lend 
any support towards considering her past history as a registrant as 
a positive factor. Regarding her past experience, the record 
establishes that she was trained as a physician and granted a 
registration. Nothing more.

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[[Page 47774]]

    Many of the Respondent's controlled substance prescribing practices 
impact not only Factor 2 (experience dispensing \131\ controlled 
substances), but also on Factors 4 (compliance with federal and state 
law relating to controlled substances) and 5 (other conduct which may 
threaten public health and safety). As discussed elsewhere in this 
decision, the Respondent stands convicted of a Kentucky state count of 
facilitation of trafficking of a controlled substance in the first 
degree. Stipulation F. Under Kentucky law:
---------------------------------------------------------------------------

    \131\ As noted supra note 128 and accompanying text, the 
statutory definition of the term ``dispense'' includes the 
prescribing and administering of controlled substances. 21 U.S.C. 
Sec.  802(10).

    A person is guilty of criminal facilitation when, acting with 
knowledge that another person is committing or intends to commit a 
crime, he engages in conduct which knowingly provides such person 
with means or opportunity for the commission of the crime and which 
---------------------------------------------------------------------------
in fact aids such person to commit the crime.

Ky Rev. Stat. Ann. Sec.  506.080(1) (emphasis supplied). The notations 
that the Respondent added to the current application that she was 
convicted of an ``unintentional'' violation of that provision,\132\ and 
her consistent position from the outset of these proceedings that the 
impact of her guilty plea is significantly altered here because it was 
tendered as an Alford plea, are both of equally little moment in these 
proceedings. Agency precedent has acknowledged the Supreme Court's 
recognition of the applicability of the res judicata doctrine in DEA 
administrative proceedings. Christopher Henry Lister, P.A., 75 Fed. 
Reg. 28068, 28069 (2010) (quoting Univ. of Tenn. v. Elliot, 478 U.S. 
788, 797-98 (1986) (``When an administrative agency is acting in a 
judicial capacity and resolves disputed issues of fact properly before 
it which the parties have had an adequate opportunity to litigate, the 
courts have not hesitated to apply res judicata[.]''); see Robert L. 
Dougherty, M.D., 76 Fed. Reg. 16823, 16830 (2011) (recognizing that 
absent an established exception, res judicata bars relitigation of 
factual findings and conclusions of law of prior DEA proceedings, state 
board decisions, and criminal convictions). This tribunal is without 
authority to relitigate the merits of the Kentucky state criminal 
conviction, or the plea, and there is certainly no warrant in the CSA 
or its implementing regulations to pass judgment on the propriety of 
the state court proceedings conducted in Harlan County, Kentucky. A 
conviction under the facilitation crime to which the Respondent pled 
guilty requires that the defendant ``act[ed] with knowledge'' that the 
facilitated person or persons was committing or intending to commit the 
crime that is the object of the charge. Ky. Rev. Stat. Ann. Sec.  
506.080(1). Furthermore, a conviction under this provision requires 
that the conduct that ``provide[d] the means or opportunity for the 
commission of the crime'' ``knowingly provide[d]'' the facilitated 
criminal(s) with the means or opportunity for a crime that was actually 
committed. Id. Thus, the Respondent was convicted under a criminal 
statute that requires that she had knowledge that she was facilitating 
the drug-trafficker patients that were the recipients of her controlled 
substance prescriptions and that her actions were done knowingly. The 
matter is res judicata in these proceedings. End of story.
---------------------------------------------------------------------------

    \132\ Gov't Ex. 2 at 2.
---------------------------------------------------------------------------

    To effectuate the dual goals of conquering drug abuse and 
controlling both legitimate and illegitimate traffic in controlled 
substances, ``Congress devised a closed regulatory system making it 
unlawful to manufacture, distribute, dispense, or possess any 
controlled substance except in a manner authorized by the CSA.'' 
Gonzales v. Raich, 545 U.S. 1, 13 (2005). Consistent with the 
maintenance of that closed regulatory system, subject to limited 
exceptions not relevant here, a controlled substance may only be 
dispensed upon a prescription issued by a practitioner, and such a 
prescription is unlawful unless it is ``issued for a legitimate medical 
purpose by an individual practitioner acting in the usual course of his 
professional practice.'' 21 U.S.C. Sec.  829; 21 C.F.R. Sec.  
1306.04(a). Furthermore, ``an order purporting to be a prescription 
issued not in the usual course of professional treatment . . . is not a 
prescription within the meaning and intent of [21 U.S.C. Sec.  829] and 
the person knowingly . . . issuing it, shall be subject to the 
penalties provided for violations of the provisions of law related to 
controlled substances.'' Id.
    A registered practitioner is authorized to dispense,\133\ which, as 
discussed elsewhere in this decision, the CSA defines as ``to deliver a 
controlled substance to an ultimate user \134\ . . . by, or pursuant to 
the lawful order of a practitioner.'' 21 U.S.C. 802(10); see also Rose 
Mary Jacinta Lewis, 72 Fed. Reg. 4035, 4040 (2007). The prescription 
requirement is designed to ensure that controlled substances are used 
under the supervision of a doctor as a bulwark against the risk of 
addiction and recreational abuse. Aycock, 74 Fed. Reg. at 17541 (citing 
Gonzales v. Oregon, 546 U.S. 243, 274 (2006); United States v. Moore, 
423 U.S. 122, 135, 142-43 (1975) (noting that evidence established that 
a physician exceeded the bounds of professional practice when he gave 
inadequate examinations or none at all, ignored the results of the 
tests he did make, and took no precautions against misuse and 
diversion)). The prescription requirement likewise stands as a 
proscription against doctors ``peddling to patients who crave the drugs 
for those prohibited uses.'' Gonzalez, 546 U.S. at 274. The courts have 
sustained criminal convictions based on the issuing of illegitimate 
prescriptions where physicians conducted no physical examinations or 
sham physical examinations. United States v. Alerre, 430 F.3d 681, 690-
91 (4th Cir. 2005), cert. denied, 574 U.S. 1113 (2006); United States 
v. Norris, 780 F.2d 1207, 1209 (5th Cir. 1986).
---------------------------------------------------------------------------

    \133\ 21 U.S.C. Sec.  823(f).
    \134\ ``Ultimate user'' is defined as ``a person who has 
lawfully obtained, and who possesses, a controlled substance for his 
own use or for the use of a member of his household or for an animal 
owned by him or by a member of his household.'' 21 U.S.C. Sec.  
802(27).
---------------------------------------------------------------------------

    While true that the CSA authorizes the ``regulat[ion of] medical 
practice insofar as it bars doctors from using their prescription-
writing powers as a means to engage in illicit drug dealing and 
trafficking as conventionally understood,'' Gonzales, 546 U.S. at 909-
10, an evaluation of cognizant state standards is essential, Joseph 
Gaudio, M.D., 74 Fed. Reg. 10083, 10090 (2009); Kamir Garces-Mejias, 
M.D., 72 Fed. Reg. 54931, 54935 (2007); United Prescription Servs., 
Inc., 72 Fed. Reg. 50397, 50407 (2007). In this adjudication, the 
evaluation of the Respondent's prescribing practices must be consistent 
with the CSA's recognition of state regulation of the medical 
profession and its bar on physicians from peddling to patients who 
crave drugs for prohibited uses. The analysis must be ``tethered 
securely'' to state law and federal regulations in application of the 
public interest factors, and may not be based on a mere disagreement 
between experts as to the most efficacious way to prescribe controlled

[[Page 47775]]

substances to treat chronic pain sufferers. Volkman v. DEA, 567 F.3d 
215, 223 (6th Cir. 2009) (citing Gonzales, 546 U.S. at 272, 274). Here 
the Government's expert couched his opinions, which are credited in 
this recommended decision, in terms of generally acceptable medical 
practice, a standard which has also been embraced as a suitable measure 
by the Agency and numerous courts of appeal. Jacobo Dreszer, M.D., 76 
Fed. Reg. 19386 (2011) (quoting United States v. Smith, 573 F.3d 639, 
647-48 (8th Cir. 2009) (internal quotation marks omitted) (citing 
United States v. Merrill, 513 F.3d 1293, 1306 (11th Cir. 2008)).
    Under the CSA, it is fundamental that a practitioner must establish 
and maintain a bona fide doctor-patient relationship in order to act 
``in the usual course of . . . professional practice'' and to issue a 
prescription for a legitimate medical purpose.'' Dewey C. Mackay, M.D., 
75 Fed. Reg. 49956, 49973 (2010); Stodola, 74 Fed. Reg. at 20731 and 
Shyngle, 74 Fed. Reg. at 6057-58 (citing Moore, 423 U.S. at 141-43). 
The CSA generally looks to state law to determine whether a bonafide 
doctor-patient relationship was established and maintained. Stodola, 74 
Fed. Reg. at 20731; Shyngle, 74 Fed. Reg. at 6058; Garces-Mejias, 72 
Fed. Reg. at 54935; United Prescription Servs., 72 Fed. Reg. at 50407.
    A Tennessee statute lists the grounds by which the Board of Medical 
Examiners (Tennessee Medical Board) may, inter alia, suspend, revoke, 
or limit a physician's license to practice medicine within the state. 
See Tenn. Code Ann. Sec.  63-6-214 (2011). Among the included grounds, 
a license may be revoked for committing an act of ``[u]nprofessional, 
dishonorable, or unethical conduct;'' as well as a ``conviction of any 
offense under state . . . laws relative to drugs;'' or ``prescribing . 
. . any controlled substance . . . not in the course of professional 
practice, or not in good faith to relieve pain and suffering . . . in 
amounts and/or for durations not medically necessary, advisable or 
justified for a diagnosed condition.'' Id. Sec.  63-6-214(b)(1), 
(b)(10)-(12). Likewise, a physician who prescribes ``controlled 
substances in amounts or for durations not medically necessary, 
advisable or justified is considered to be practicing beyond the scope 
of the professional practice.'' Tenn. Comp. R. & Regs. 0880-
02-.14(2)(d) (2010). Thus, Dr. Miller's uncontroverted testimony about 
the improvidence of prescribing methadone simultaneously with Oxycontin 
\135\ arguably support a finding that these prescriptions were issued 
outside the scope of a professional practice. Equal grounds for 
revocation include ``prescribing . . . a controlled substance [to a] 
person [who] is addicted to the habit of using controlled substances 
without making a bona fide effort to cure the habit of such patient,'' 
or ``prescribing . . . any controlled substance . . . in violation of 
any law of [Tennessee] or of the United States.'' Tenn. Code Ann. Sec.  
63-6-214(b)(13) (14). Prescribing controlled substances to patients who 
have demonstrated, through irregular UDS results, potential addiction, 
are likewise improper under Tennessee state law.
---------------------------------------------------------------------------

    \135\ Tr. 584-85, 610-11.
---------------------------------------------------------------------------

    In addition to the statutory requirements related to controlled 
prescriptions, the Tennessee Medical Board (apparently unbeknownst to 
the experts who testified in this case) adopted regulations pursuant to 
the Tennessee Intractable Pain Treatment Act, Tenn. Code Ann. Sec.  63-
6-1105, -1111, governing the authority physicians have to prescribe 
controlled substances, Tenn. Comp. R. & Regs. 0880-02-.14(6), necessary 
prerequisites prior to issuing prescriptions, id. at 0880-02-.14(7), 
and guidelines carrying the force of law for using controlled 
substances to treat pain, id. at 0880-02-.14(6)(e). Recognizing that 
controlled substances are indispensable for the treatment of pain, 
physicians only have the authority \136\ to prescribe them ``after a 
reasonably based medical diagnosis has been made, in adequate doses, 
and for appropriate lengths of time.'' Id. at 0880-02-.14(6). 
Furthermore, to the extent pain management for intractable pain becomes 
the focus of the physician's practice, regardless of whether he 
prescribes opiates, he or she must have documented specialized 
education in pain management on causes, different and recommended 
treatment modalities, chemical dependency,\137\ and psycho/social 
aspects of the condition sufficient to bring the practitioner into the 
current standard of care in the pain management field. Id. at 0880-
02-.14(6)(c).
---------------------------------------------------------------------------

    \136\ General authority to prescribe controlled substances as a 
course of treatment for patients suffering from intractable pain is 
granted in the Tennessee Intractable Pain Treatment Act. Tenn. Code 
Ann. Sec.  63-6-1105 (2011).
    \137\ Physicians treating pain patients who require treatment 
for chemical dependency as well must also comply with the 
Intractable Pain Treatment Act. Tenn. Comp. R. & Regs. 0880-
02-.14(d); see Tenn Code Ann. Sec.  63-6-1107(c), (d).
---------------------------------------------------------------------------

    As conditions precedent to prescribing controlled substances, the 
Tennessee Medical Board promulgated a rule mandating compliance with 
several requirements regarding patient history, examination, testing, 
diagnosis, and treatment plan. In fact, according to the rule, 
prescribing a controlled drug is a prima facie violation of the statute 
that requires such medications to be issued only in the course of 
professional practice (and in amounts and durations medically 
necessary, advisable, and justified for a diagnosed condition), unless 
the physician has ``first done and appropriately documented . . . all 
of the following,'' id. at -.14(7) (emphasis supplied):

    1. Performed an appropriate history and physical examination; 
and
    2. Made a diagnosis based upon the examinations and all 
diagnostic and laboratory tests consistent with good medical care; 
and
    3. Formulated a therapeutic plan, and discussed it, along with 
the basis for it and the risks and benefits of various treatments 
options, a part of which might be the prescription or dispensed 
drug, with the patient; and
    4. Insured availability of the physician or coverage for the 
patient for appropriate follow-up care.

    Id. \138\ It is also a prima facie violation to prescribe 
controlled drugs based solely upon ``answers to a set of questions.'' 
Id. at -.14(7)(c).
---------------------------------------------------------------------------

    \138\ An exception is made that a new physical examination is 
not required for established patients before issuing new 
prescriptions so long as that determination is made by the physician 
based upon ``sound medical practices.'' Tenn. Comp. R. & Regs. 0880-
02-.14(7)(b)(4).
---------------------------------------------------------------------------

    The state pain management guidelines adopted by the Tennessee 
Medical Board through regulation (Tennessee Guidelines), which closely 
track the statutory language and requirements of the Tennessee 
Intractable Pain Treatment Act,\139\ affirm that prescribing controlled 
substances for the treatment of pain will be considered for a 
legitimate medical purpose if ``based upon accepted scientific 
knowledge of the treatment of pain,'' not in violation of applicable 
Tennessee or federal laws, and prescribed in compliance with the 
Tennessee Guidelines where appropriate and as necessary depending on 
individual patient needs.\140\ The Tennessee Guidelines, noted as 
follows, command that prescriptions may only be made:
---------------------------------------------------------------------------

    \139\ See Tenn. Code Ann. Sec.  63-6-1107.
    \140\ Tenn. Comp. R. & Regs. 0880-02-.14(6)(e)(3).

    1. After a documented medical history is taken from the patient 
and physical examination is conducted by the physician, including 
``an assessment and consideration of the pain, physical and 
psychological function, any history and potential for substance 
abuse, coexisting diseases and conditions, and the presence of a 
recognized

[[Page 47776]]

medical indication for the use of a . . . controlled substance;'' 
\141\
    2. ``Pursuant to a written treatment plan tailored for the 
individual needs of the patient'' that takes into account treatment 
progress and success as evaluated with stated objectives, like pain 
relief or improved physical or psychosocial function.\142\ The 
written treatment plan requires consideration of the relevant 
patient medical history, physical examination conducted, and any 
need for further testing, consultation, referral, or employment of 
alternative treatment modalities; \143\
    3. Following a discussion between the physician and the patient 
regarding the weighed risks and benefits of treatment through the 
use of controlled substances.\144\
    4. ``Subject to documented periodic review'' of the treatment 
plan at reasonable intervals relative to any progress toward the 
defined treatment objectives;\145\ and
    5. While keeping ``[c]omplete and accurate records of the care'' 
listed above, including specific details of each prescription for a 
controlled substance.\146\

    \141\ Id. at -.14(6)(e)(3)(i).
    \142\ Id. at -.14(6)(e)(3)(ii).
    \143\ Id.
    \144\ Id. at -.14(6)(e)(3)(iii).
    \145\ Id. at -.14(6)(e)(3)(iv).
    \146\ Id. at -.14(6)(e)(3)(v).
---------------------------------------------------------------------------

    The Guidelines further provide that the validity of a physician's 
prescribing, including the quantities of drugs and chronicity of the 
prescribing, will be judged based on ``the documented appropriate 
diagnosis and treatment of the recognized medical indication, 
documented persistence of the recognized medical indication, and 
properly documented follow-up evaluation with appropriate continuing 
care as set out by [the Guidelines].'' Id. at -.14(6)(e)(6). Moreover, 
special attention and consideration is to be given to patients who have 
a history of substance abuse or live in an environment which poses a 
risk for drug misuse or diversion. Id. at -.14(6)(e)(3)(v); see Tenn. 
Code Ann. Sec.  63-6-1107. Such scrutiny may be in the form of closer 
monitoring or consultation with other appropriate healthcare 
professionals. Id. Deviation from strict adherence to the Tennessee 
Guidelines, absent good cause, is grounds by the Tennessee Medical 
Board to take disciplinary action. Id. at -.14(6)(e)(8). Prescribing 
for other than legitimate medical purposes, writing false or fictitious 
controlled-substance prescriptions, or prescribing controlled 
medications in a manner inconsistent with the public health and welfare 
are all explicit bases for medical license cancellation, suspension, or 
revocation. Tenn. Code Ann. Sec.  63-6-1108.
    As demonstrated above, it is abundantly clear from the plain 
language of both the Tennessee statutes and regulations, including the 
Tennessee Guidelines, that the drafters placed critical emphasis on the 
need to document the objective signs and rationale employed in the 
course of pain treatment through the prescription of controlled 
substances. Conscientious documentation is not just a ministerial act, 
but a key treatment tool and a vital indicator to evaluate whether the 
physician's prescribing practices are ``within the usual course of 
professional practice.'' Here, the Respondent's documentation regarding 
UDS anomalies, follow-up, and recordkeeping, like her level of 
motivation in procuring prior medical records and referrals, were, 
based on the testimony of every witness (including herself), woefully 
inadequate and, based on expert testimony and practices readily 
apparent in the patient charts of evidence discussed elsewhere 
identified by the DIs as well as through review made by this tribunal, 
clearly noncompliant with the standards and law related to controlled 
substance prescribing in the state of Tennessee.
    Suffice it to say that the Respondent's prescribing practices did 
little to advance the position that she fulfilled her obligations as a 
registrant to safeguard against diversion in any meaningful way. When 
pressed on the issue at the hearing, the Respondent acknowledged that 
even she no longer believes that her approach to minimizing diversion 
risks had been an effective one. Tr. 895-96. This tacit admission of 
dereliction notwithstanding, both the plain language employed by the 
Respondent and the tenor of her testimony as observed at the hearing 
revealed more of a resignation about specific deficiencies brought to 
her attention during the course of her testimony than any significant 
level of acknowledgment of wrongdoing and acceptance of responsibility. 
Her lackluster testimonial epiphanies occurred only at her own 
administrative hearing sporadically at times when confronted with the 
realities of the manner in which she discharged her obligations as a 
registrant. According to the Respondent, despite years of prescribing 
in the face of negative drug screens that were plainly divergent from 
any reasonable expectation, and/or prescribing immediately at the first 
visit without UDS results or even prior medical records, it was, 
according to her, only during the course of these proceedings that she 
discovered the weaknesses in her prescribing methods. In her testimony, 
when asked about whether she believed the approach in her practice 
regarding tolerance for aberrant UDS conduct was correct, the 
Respondent remarked that ``a few charts that [she] has looked over'' 
demonstrated suspicious UDS result fluctuations and that as to ``one 
patient eventually, we had to discharge that patient just because we 
found out that she was doctor shopping in one of the charts that I've 
looked here.'' Tr. 895-96. Another discovery that, according to the 
Respondent, was not made until hearing testimony (from no less than her 
own expert witness) at the hearing, was that controlled opioid 
prescription drugs can be abused in the same manner as illicit street 
drugs, and that she ``feel[s] that probably something needs to be done 
about it.'' \147\ Tr. 896-97. The recency of her realizations stand in 
sharp contrast with the depth and breadth of her extensive training and 
experience in the fields of anesthesiology and pain management. Given 
the Respondent's years and level of practice, it would greatly strain 
credulity to accept that it was only the unfolding of the Government's 
evidence during litigation that lifted the shroud of confusion from her 
eyes and allowed her to see a better way to prescribe controlled 
substances. It is certainly more plausible to conclude that the 
Respondent was well aware of what her obligations required and 
intentionally turned a blind eye. A practitioner registrant may be 
charged with knowledge that prescriptions were for a non-legitimate 
purpose under a theory of deliberate ignorance based on his/her 
interactions with patients and other circumstances associated with the 
issuance of prescriptions to those persons. Jeri Hassman, M.D., 75 Fed. 
Reg. 8194, 8228 (2010) (finding that the frequency of prescribing in 
the face of red flags supported the conclusion that Respondent was not 
negligent, but knowingly prescribed without a legitimate medical 
purpose); see United States v. Katz, 445 F.3d 1023, 1031 (8th Cir. 
2006) (knowledge can be inferred when a practitioner is put ``on notice 
that criminal activity was particularly likely and yet . . . failed to 
investigate those facts'') (other citations and quotations omitted).
---------------------------------------------------------------------------

    \147\ Presumably, the Respondent was alluding to measures beyond 
criminal prosecutions and administrative proceedings brought against 
DEA registrants.
---------------------------------------------------------------------------

    In like fashion, the Respondent's assertion that she now realizes 
the error of what was essentially intentional ignorance of obvious red 
flags, has procured guidance from other pain management specialists, 
and now has the ability and inclination to procure

[[Page 47777]]

the services of a practice mentor, such as Dr. Miller, are equally 
unavailing on this record. The Agency has recognized that a cessation 
of illegal behavior only when ``DEA comes knocking at one's door,'' can 
be afforded a diminished weight borne of its own opportunistic timing. 
Liddy's Pharmacy, L.L.C., 76 Fed. Reg. 48887, 48897 (2011). Despite her 
impressive pain management and anesthesiology credentials, the 
Respondent stopped prescribing controlled substances recklessly and 
dangerously only after she was caught. Plans to hire a practice 
monitor, taken under these conditions, when viewed in the context of 
the Respondent's level of pain management expertise, is hardly a 
consideration that militates in favor of her application with any 
appreciable momentum. See also, Southwood Pharm., Inc., 72 Fed. Reg. at 
36503 (DEA afforded no weight to registrant's ``stroke-of-midnight 
decision'' to cease illegal conduct and hire an experienced compliance 
officer).
    During the course of the hearing and in her brief, a significant 
measure of the Respondent's case focused upon the possibility that 
there could have been valid reasons that several of the UDS results 
from her patients could have reflected negative results for controlled 
substance medications that were prescribed.\148\ But that there could 
have been legitimate explanations supplied by patients and considered 
by the Respondent misses the point. Valid medically-based 
justifications credited by a prescribing physician for seemingly errant 
UDS reports certainly could have ranged from the expected to the 
outlandish. The problem for the Respondent here, is that there is no 
documented explanation or analysis for many instances where some 
explanation was demanded by reason and the applicable medical 
standards. The patient charts do not reflect a thought process that 
analyzed red flags and demonstrated any effort on the part of the 
Respondent to discharge her duty as a DEA registrant and vanguard 
within the closed regulatory system. Whether the potential universe of 
reasons that could have been offered by her patients ranged from the 
perfectly reasonable to the eccentric, they were clearly not part of 
the equation that resulted in the Respondent's documented prescribing 
methodology. What was apparent is that her patients demonstrated a 
disturbing level of potential diversion red flags that were met with a 
correspondingly disturbing level of complacency on her part. The 
uncontroverted expert testimony of record establishes that as a 
registrant, the Respondent was required to recognize diversion red 
flags, to confront the source of those red flags, and make controlled 
substance prescribing decisions that reflected due regard to her 
obligations as the holder of a DEA controlled substance registration. 
In this regard, she was deficient, and repeatedly so.
---------------------------------------------------------------------------

    \148\ See Tr. 240-41, 291 (Xanax was prescribed on an ``as 
needed'' basis); id. at 297 (Xanax is short acting and can be 
eliminated from the body in a relatively short period of time); id. 
at 242-45 (oxycodone is a medication that can result in false 
negative results).
---------------------------------------------------------------------------

    Similarly, the Respondent has pointed to the fact that entries 
corresponding to patient care performed by her former medical partner, 
Dr. Vilvarajah, are also reflected in the reviewed charts.\149\ Tr. 
258-262, 268, 284, 287-88, 292-95, 298-99, 305-09. These concerns are 
similarly unavailing, as the evidence demonstrates that the Respondent 
prescribed controlled substances without documented hesitation where 
accepted medical practice and her duties as a registrant required 
additional diligence. Dr. Loyd persuasively testified that even when 
patient responsibilities are shared between partners, it is incumbent 
upon the physician about to prescribe controlled substances to go back 
through the chart and see what has been done before. Tr. 333. Whatever 
Dr. Vilvarajah's failings were, they did not in any way diminish the 
Respondent's responsibilities to review the chart of the patients to 
whom she was prescribing controlled substances and to ask the required 
hard questions. The Respondent failed in this regard.
---------------------------------------------------------------------------

    \149\ Part of the confusion regarding multiple physicians arose 
from Dr. Loyd's initial, erroneous assumption during his chart 
review that the Tennessee Medical Board cover sheet in the front of 
each patient chart copy provided to him by DEA was evidence that the 
Respondent was that patient's treating physician and responsible for 
all notations within the chart. Tr. 335, 826.
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    Thus, evaluating her level of compliance with applicable medical 
standards and adherence to state and federal regulatory guidance, 
consideration of the second and fourth factors militate powerfully 
against granting the Respondent's application.
    The Fifth statutory factor, which plays a critical role in a 
disposition of this case given the facts presented, permits the 
Administrator to consider ``other conduct which may threaten the public 
health and safety.'' 21 U.S.C. Sec.  823(f)(5). Under current Agency 
precedent, this factor encompasses ``conduct which creates a probably 
or possible threat . . . to public health and safety. Cadet, 76 Fed. 
Reg. at 19450 n.3; Dreszer 76 Fed. Reg. at 19386-87 n.3; Dreszer,76 
Fed. Reg. at 19434 n.3; Aruta,76 Fed. Reg. at 19420 n.3. Many of the 
details of the Respondent's conduct that have been detailed elsewhere 
in this recommended decision under other public interest factor 
categories are also relevant under Factor 5.
    Many of the details of the Respondent's conduct that have been 
detailed elsewhere in this recommended decision under other public 
interest factor categories are also relevant under Factor 5. The sheer 
volume of controlled substance prescriptions issued to patients in the 
face of uninvestigated diversion red flags created a situation where 
many people were provided with dangerous and addictive medications 
without adequate consideration about whether the patients were addicted 
or pumping out drugs into their communities to feed the habits of 
others who might be. The sheer numbers of prescriptions involved, 
coupled with the slipshod level of monitoring conducted by this 
registrant clearly threatened the public health and safety. 
Consideration of the evidence under Factor 5, like Factors 2 and 4, 
militates compellingly against the Respondent's application for a COR.

Recommendation

    In cases, such as the present case, where the Government has made 
out a prima facie case that the Respondent has committed acts that 
render registration inconsistent with the public interest, Agency 
precedent has firmly placed acknowledgement of guilt and acceptance of 
responsibility as conditions precedent to merit the granting or 
continuation of status as a registrant. Hoxie v. DEA, 419 F.3d 477, 483 
(6th Cir. 2005); Hassman, 75 FR at 8236; Ronald Lynch, M.D., 75 Fed. 
Reg. 78745, 78749 (Respondent's attempts to minimize misconduct held to 
undermine acceptance of responsibility); George Mathew, M.D., 75 Fed. 
Reg. 66138, 66140, 66145, 66148 (2010); George C. Aycock, M.D., 74 Fed. 
Reg. 17529, 17543 (2009); Steven M. Abbadessa, D.O., 74 Fed. Reg. 
10077, 10078 (2009); Jayam Krishna-Iyer, M.D., 74 Fed. Reg. 459, 463 
(2009); Medicine Shoppe-Jonesborough, 73 Fed. Reg. 364, 387 (2008). A 
balancing of the statutory public interest factors supports the denial 
of the Respondent's application for a COR. The Respondent has not 
accepted responsibility for her actions, persuasively expressed remorse 
for her conduct, or presented evidence that could reasonably support a 
finding that the Administrator should entrust her with a registration. 
In light of current Agency precedent, her election to maintain her 
innocence in the face of her criminal conviction, her state board

[[Page 47778]]

proceedings, and the persuasive evidence offered against her in these 
proceedings was taken at her own procedural peril. Under current Agency 
precedent the present record supports and compels the Agency to deny 
her COR application, which is the course recommended by this decision.
    Accordingly, the Respondent's application for a Certificate of 
Registration should be DENIED.
Dated: August 18, 2011 s/JOHN J. MULROONEY, II
Chief Administrative Law Judge
[FR Doc. 2013-18922 Filed 8-5-13; 8:45 am]
BILLING CODE 4410-09-P