When the DEA Demands You Surrender Your Registration, Just Say No

It’s a situation that has unfortunately become common — and has cost medical practitioners their career.

An agent clad in a DEA jacket arrives at your practice. He begins asking you questions regarding your prescribing habits. Wishfully thinking this is just a routine inspection, the practitioner dutifully answers all of the agent’s questions.

At the end of the interview, the DEA agent informs the practitioner that he/she is “in big trouble” and that “practicing is the least of your concerns.” This is followed by: “It would make it easier for you if you just voluntarily surrender your DEA registration.”

The agent then tells the practitioner, “If you do not surrender your DEA registration, we will revoke it anyway.” Then, an innocuous looking voluntary surrender form and pen is shoved across the table.

Feeling confused, scared and fearing the consequences of the recent raid, inspection or interview, it’s here when the practitioner signs his career away with the stroke of a pen.

Regardless of the magnitude of the investigation, this is the worst decision a practitioner could make. And it happens all too routinely. 

Taking legal advice from a DEA agent is like taking financial advice from a con man. The only hope is that, in those fleeting moments of clarity, you step away from the agent and call a health care law attorney skilled in DEA matters.

Why Shouldn’t You Surrender Your DEA Registration?

There are three reasons why:

  • Surrendering your DEA registration may trigger administrative action against other professional licenses such as your state medical or pharmacy license.
  • You will likely be unable to reapply for a DEA registration.
  • Significant delays in the DEA adjudication process can benefit you by permitting you to practice pending the resolution of your DEA registration issue.

When Can the DEA Revoke or Suspend DEA Registration?

In order to suspend or revoke your DEA registration, the Attorney General must prove one of the following factors:

    • You materially falsified any application filed pursuant to or required by subchapter I of Section 823 the Title 21 United States Code (USC) Controlled Substances Act or subchapter II of this chapter.
    • You were convicted of a felony under this subchapter or subchapter II of this chapter or any other law of the U.S., or of any state, relating to any substance defined in this subchapter as a controlled substance or a list I chemical.
    • You had a state license or registration suspended, revoked or denied by competent state authority, and are no longer authorized by state law to engage in the manufacturing, distribution or dispensing of controlled substances or list I chemicals, or have had the suspension, revocation, or denial of your registration recommended by competent state authority.
    • You committed such acts as would render your registration under Section 823 of this title inconsistent with the public interest as determined under such section.
    • You were excluded (or directed to be excluded) from participation in a program pursuant to section 1320a–7(a) of title 42.1.

Significant Delays in DEA Adjudication May Benefit You

Prior to revocation, the Attorney General must provide you with an “Order to Show Cause” why your registration should not be denied, revoked or suspended. You must respond within 30 days of the order and administrative proceedings will commence pursuant to Section 1301.41.

In certain “emergency” situations, the Attorney General may suspend any registration simultaneously with the institution of proceedings where he or she finds that there is an “imminent danger to the public health or safety.” Therefore, if you refuse to voluntarily surrender your DEA registration, the DEA will be required to submit an order to show cause and provide you with an opportunity for a hearing.

Conversely, if you surrender your DEA registration, you are waiving your right to a hearing and you would be required to reapply for your registration after the resolution of the criminal, civil or administrative proceedings against you. Resolution of these matters could take a significant amount of time — possibly years.

In May 2014, the Office of the Inspector General (OIG) issued a report citing extreme delays in the adjudication process for suspensions, revocations and denials of DEA registrations. The OIG concluded that “delays in the adjudication of registrant actions create risks to the public health and safety” as well as to the licensee.

The OIG found that adjudication could take more than one year between notification of hearing and agency action, which it deemed “very lengthy.” The OIG also noted that the Agency has “consistently failed to meet its own timeliness standards in adjudicating immediate suspension orders.”

As a result of the OIG’s review, it is clear why DEA agents routinely try to convince registrants they should surrender their DEA registration voluntarily and waive their right to a hearing. Given the extreme backlog of cases pending adjudication, a practitioner may continue prescribing until final adjudication by the agency is completed. As noted, this could take over a year.

If the Agency proceeds with an immediate suspension order, the significant delays in DEA adjudication could impact the practitioner negatively. In 2012, the DEA took 459 days to adjudicate an immediate suspension order. However, when faced with the choice of voluntary surrender without a hearing and immediate suspension, the practitioner should almost always exercise their right to due process and request a hearing, because:

1. there is a chance that the DEA will not file an immediate suspension order; and,

2. the practitioner may have some likelihood of success at an administrative hearing.

Finally, if you voluntarily surrender your license and seek reinstatement, these delays will further impact your ability to return to practice after the completion of your pending administrative, criminal or civil matter.

Voluntary Surrender Could Trigger Administrative Actions

While the laws governing the prescription of controlled substances are different in every state, most states require a controlled substance license in order to prescribe Schedule II through IV substances. When a practitioner voluntarily surrenders his/her DEA registration, there is a significant chance that the practitioner’s state may take independent action to revoke, limit or suspend the practitioner’s state license.

Often, there is a domino effect when administrative action (including voluntary surrender) taken by the DEA or a state in which the practitioner holds a license ripples into other states and can cause significant legal expenses, adverse administrative action and state sanctions.

Refusing to voluntarily surrender your registration will delay this domino effect and possibly prevent it — if you and your attorney are successful in resolving the pending criminal, administrative or civil action.

Additionally, most hospital credentialing bodies and insurers require a DEA license as a condition of employment or participation. Voluntary surrender of your DEA registration may trigger a mandatory reporting requirement to your credentialing body and participating insurers, which could lead to swift and harsh credentialing action and loss of privileges.

Practitioners rarely benefit from the voluntary surrender of their DEA registration. Any agent’s promise that surrender will provide a benefit should fall on deaf ears unless it is specifically negotiated by counsel in exchange for some other relief.

How the Healthcare Law Attorneys at Chapman Law Group Can Help DEA Registrants in Michigan, Florida, Nationally

When the DEA agent slides that form across the table, politely slide it back and contact an national healthcare-oriented criminal defense attorney who specializes in DEA matters.

At Chapman Law Group, our national team of DEA defense attorneys have the know-how to defend DEA registrants both during DEA investigations and in subsequent DEA actions. We protect practitioners, pharmacies, distributors and other registrants across the U.S. from losing their DEA registration. Contact us and let our experts defend your practice from the threat of a DEA registration revocation.

The healthcare law attorneys at Chapman Law Group are dedicated to helping practitioners, pharmacies, distributors, and other registrants all over the country protect their DEA registration. Our goal is not only to protect the DEA registration of our clients, but also to protect their other professional licenses, their careers, and their reputations from damage caused by DEA investigations and allegations of noncompliance. 

The national healthcare criminal law attorneys at Chapman Law Group have extensive experience in DEA Immediate Suspension Orders, as well as other DEA matters including:

We represent licensed medical professionals, including:

Our offices are in Detroit (where we serve Dearborn, Troy, Ann Arbor and Grand Rapids, and the rest of Michigan); Miami and Sarasota, Florida (for Jacksonville, Tampa, Orlando, West Palm Beach, and all of Florida); Los Angeles/Southern California; and Chicago. Contact us today  we are ready to help you.

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