[Federal Register: November 12, 2002 (Volume 67, Number 218)]
[Notices]
[Page 68689-68690]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no02-115]
[[Page 68689]]
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DEPARTMENT OF JUSTICE
Drug Enforcement Administration
Fredesminda Yabut-Baluyut, M.D. Revocation of Registration
On February 25, 2002, the Deputy Assistant Administrator, Office of
Diversion Control, Drug Enforcement Administration (DEA), issued an
Order to Show Cause to Fredesminda Yabut-Baluyut, M.D. (Dr. Yabut-
Baluyut) of Lake Forest, California, notifying her of an opportunity to
show cause as to why DEA should not revoke her DEA Certificate of
Registration, AY2422640 under 21 U.S.C. 824(a), and deny any pending
applications for renewal or modification of that registration. As a
basis for revocation, the Order to Show Cause alleged that Dr. Yabut-
Baluyut is not currently authorized to handle controlled substances in
California, the state in which she practices. The order also notified
Dr. Yabut-Baluyut that should no request for a hearing be filed within
30 days, her hearing right would be deemed waived.
The Order to Show Cause was sent by certified mail to Dr. Yabut-
Baluyut at her registered location in Lake Forest, California. DEA
received a signed receipt indicating that the Order to Show Cause was
received on Dr. Yabut-Baluyut's behalf on March 5, 2002. DEA has not
received a request for hearing or any other reply from Dr. Yabut-
Baluyut or anyone purporting to represent her in this matter.
Therefore, the Deputy Administrator, finding that (1) 30 days have
passed since the receipt of the Order to Show Cause, and (2) no request
for a hearing having been received, concludes that Dr. Yabut-Baluyut is
deemed to have waived her hearing right. After considering material
from the investigative file in this matter, the Deputy Administrator
now enters his final order without a hearing pursuant to 21 CFR
1301.43(d) and (e) and 1301.46.
The Deputy Administrator finds that Dr. Yabut-Baluyut possessed DEA
Certificate of Registration AY2422640 and that registration expired on
May 31, 2001. The registration remains valid, however, based upon
renewal applications submitted on April 9, 2001, and August 20, 2001.
The Deputy Administrator further finds that an investigation by DEA
revealed that from March 1997 through May 1998, Dr. Yabut-Baluyut made
59 separate purchases totaling 12 million tablets of 60mg.
pseudoephedrine from Hadro Drugs (formerly Darby Drugs) of Westbury,
New York. Four of these purchases were in excess of $10,000 in which
Dr. Yabut-Baluyut used multiple cashier's checks purchased from her
bank. Dr. Yabut-Baluyut then sold these products to an individual who
picked up pseudoephedrine products from Dr. Yabut-Baluyut's home and/or
residence.
On September 4, 1998, Dr. Yabut-Baluyut was questioned by DEA
investigators regarding the sale of the above products. Dr. Yabut-
Baluyut informed investigators that she sold pseudoephedrine tablets to
an individual by the name of ``John.'' Dr. Yabut-Baluyut stated falsely
to DEA investigators that she did not know how to contact the
individual. During a subsequent interview with a DEA Special Agent, Dr.
Yabut-Baluyut reiterated that she did not know the identity of the
person to whom she sold pseudoephedrine. After further questioning,
however, Dr. Yabut-Baluyut informed DEA that the individual's name was
``John Smith.'' Dr. Yabut-Baluyut later admitted that she sold
pseudoephedrine to ``John Smith'' because she needed the money. DEA
subsequently learned that Dr. Yabut-Baluyut sold the above referenced
pseudoephedrine products to an individual by the name of Joseph
Hasrouty. DEA also learned that Dr. Yabut-Baluyut never provided
medical treatment to Mr. Hasrouty, nor was he Dr. Yabut-Baluyut's
patient.
Pseudoephedrine (DEA chemical code 8112) is a legitimately imported
and distributed product used in the production of nasal decongestants.
Pseudoephedrine is also a precursor chemical used in the illicit
manufacture of methamphetamine or amphetamine, both Schedule II
controlled substances. Dr. Yabut-Baluyut knew, or should have known
that the person to whom she sold pseudoephedrine purchased the product
for purposes of manufacturing methamphetamine. 21 U.S.C. 843(a)(7). In
addition, Dr. Yabut-Baluyut failed to maintain a record of these
regulated transactions as required by 21 U.S.C. 830(a).
On January 19, 1999, Dr. Yabut-Baluyut was arrested pursuant to a
federal arrest warrant issued from the United States District Court,
Central District of California on a charge of knowingly possessing and
distributing approximately 12 million tablets of pseudoephedrine, and
having reasonable cause to believe that such chemical would be used to
manufacture a controlled substance in violation of 21 U.S.C. 841. On
June 15, 2000, Dr. Yabut-Baluyut was indicted on nine felony counts
related to conspiracy, and unlawful possession of a listed chemical in
violation of 21 U.S.C. 841 and 846. On June 27, 2001, a superseding
indictment was issued charging Dr. Yabut-Baluyut with thirteen felony
counts related to conspiracy, unlawful possession of a listed chemical,
wrongful distribution of a listed chemical and failure to maintain
required records, in violation of 21 U.S.C. 841 and 846. On October 16,
2001, Dr. Yabut-Baluyut was found guilty on nine counts of the
superseding indictment. Therefore, Dr. Yabut-Baluyut has been convicted
of a felony related to controlled substances. 21 U.S.C. 824(a)(2).
On December 9, 1999, the California Medical Board (Board) issued an
order restricting Dr. Yabut-Baluyut's physician's and surgeon's
certificate (medical license) pending a hearing before the Board, and
further ordered that Dr. Yabut-Baluyut be restricted from prescribing,
administering, dispensing or ordering any controlled substances. On
December 22, 1999, the Board brought an Accusation against Dr. Yabut-
Baluyut's medical license in the State of California based in part upon
Dr. Yabut-Baluyut's purchase and sale of pseudoephedrine for no
legitimate medical reason. The Board further alleged that Dr. Yabut-
Baluyut excessively prescribed dangerous drugs and controlled
substances, and that Dr. Yabut-Baluyut prescribed dangerous drugs and/
or controlled substances, without a good faith prior examination or
medical indication. On June 2, 2000, the Board issued a Default
Decision, in which it ordered the revocation of Dr. Yabut-Baluyut's
medical license. The decision was to take effect on July 3, 2000.
However, on June 22, 2000, the Board issued an Order Vacating and
Setting Aside Disciplinary Decision with respect to the revocation of
Dr. Yabut-Baluyut's medical license. However, the Board maintained the
suspension of Dr. Yabut-Baluyut's license with respect to her handling
of controlled substances, and there is nothing in the investigative
file that shows that her privileges have been reinstated. Therefore,
Dr. Yabut-Baluyut currently is not authorized to handle controlled
substances in the State of California. 21 U.S.C. 824(a)(3).
DEA does not have statutory authority under the Controlled
Substances Act to issue or maintain a registration if the applicant or
registrant is without state authority to handle controlled substances
in the state in which he conducts business. See 21 U.S.C. 802(21),
823(f) and 824(a)(3). This prerequisite has been consistently upheld.
See Muttaiya Darmarajeh, M.D., 66 FR 52936 (2001); Dominick A. Ricci,
M.D., 58 FR 51104 (1993); Bobby Watts, M.D. 53 FR 11919 (1988).
[[Page 68690]]
Here, it is clear that Dr. Yabut-Baluyut is not licensed to handle
controlled substances in the State of California, where she is
registered with DEA. Therefore, she is not entitled to a DEA
registration in that state. Moreover, Dr. Yabut-Baluyut has been
convicted of a felony relating to listed chemicals and has committed
such acts as would render her registration inconsistent with the public
interest.
Accordingly, the Deputy Administrator of the Drug Enforcement
Administration, pursuant to the authority vested in him by 21 U.S.C.
823 and 824 and 28 CFR 0.100(b) and 0.104, hereby orders that DEA
Certificate of Registration AY2422640, issued to Fredesminda Yabut-
Baluyut, M.D. be, and it hereby is, revoked. The Deputy Administrator
further orders that any pending applications for renewal or
modification of such registration be, and they hereby are, denied. This
order is effective December 12, 2002.
Dated: October 28, 2002.
John B. Brown, III,
Deputy Administrator.
[FR Doc. 02-28660 Filed 11-8-02; 8:45 am]
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