Falsely Reporting Theft of Controlled Substances: DEA Consequences

Falsely Reporting Theft of Controlled Substances: DEA Consequences

Prescription drug abuse has become an epidemic in the United States, with overdose deaths from prescription opioids quadrupling since 1999[1]. To combat this crisis, the Drug Enforcement Administration (DEA) closely monitors and regulates the distribution of controlled substances. Healthcare providers who are authorized to prescribe controlled substances have a legal obligation to properly store, dispense, and account for these medications.

What Happens When Theft is Falsely Reported

In some cases, healthcare providers falsely report that their supply of controlled substances has been lost or stolen. This is done to cover up diversion — the transfer of legally prescribed controlled substances from lawful to unlawful channels[2]. Reasons for diversion include:

• Sale for profit
• Personal abuse
• Self-medication

Falsely claiming theft of controlled substances is a serious offense with severe consequences. When a loss or theft is reported, the DEA launches an investigation to determine if diversion has occurred. If it is revealed the report was falsified, the DEA will pursue civil fines or criminal prosecution against the registrant.

Civil Penalties

Under the Controlled Substances Act, registrants can face civil fines up to $25,000 per violation[3]. The DEA may issue a Letter of Admonition, which alleges violations took place and advises corrective actions. Or they may serve an Order to Show Cause, which requires the registrant appear before an Administrative Law Judge to explain why their registration should not be revoked or suspended[4].

Additional civil consequences include:

• Revocation/denial of DEA registration needed to handle controlled substances
• Exclusion from Medicare/Medicaid programs
• Loss of state licenses/certifications

Criminal Charges

Falsely reporting theft of controlled substances can lead to criminal charges, including[5]:

• Obtaining a controlled substance by misrepresentation, fraud, forgery, deception or subterfuge
• Failure to make, keep or furnish reports/records required by the DEA
• Knowingly making false statements in reports or records required by the DEA

Charges may be brought under the Controlled Substances Act or other laws like mail/wire fraud, racketeering, and money laundering. Healthcare providers face steeper penalties than non-registrants. Possible sentences include:

• Fines up to $250,000 per count for individuals, $1 million for organizations
• Imprisonment up to 4 years for first offenses
• Revocation of DEA registration and denial of future registration

Real-World Examples

In one case, a New York doctor falsely reported his office was burglarized to conceal diversion of oxycodone and other narcotics. He was criminally charged with obtaining controlled substances by misrepresentation and sentenced to 6 months in prison.

The DEA also pursued an administrative action against a Tennessee dentist who falsely claimed hydrocodone was stolen to cover up personal use. His DEA registration was revoked for 5 years.

DEA Audit Triggers Investigation

The DEA routinely performs audits of controlled substance inventories to ensure accountability. Discrepancies or suspicious recordkeeping often trigger further investigation.

When a theft is reported, the DEA will compare inventory logs to records of dispensing and purchasing. They look for patterns like:

• Repeated “thefts” of the same drug over time
• Loss of drugs most prone to abuse like opioids
• Quantities reported missing don’t match dispensing records

If records were fabricated to hide diversion, the DEA will uncover it through audits.

Burden of Proof Falls on Registrant

When drugs are reported missing, the burden of proof falls on the registrant to demonstrate adequate security and recordkeeping procedures were in place. According to DEA regulations:

“The registrant shall notify the Field Division Office of the Administration in his area, in writing, of the theft or significant loss of any controlled substances within one business day of discovery of such loss or theft. The registrant shall also complete, and submit to the Field Division Office in his area, DEA Form 106 regarding the loss or theft.”

Simply stating drugs were stolen is not enough. The registrant must provide evidence showing appropriate diversion control measures were implemented. This includes inventory documentation, access controls, surveillance systems, etc.

If lax security enabled the loss, the DEA may still issue penalties even if the report was truthful.

Best Practices to Prevent Diversion

To avoid legitimate theft and accurately account for controlled substances:

• Maintain accurate dispensing records documenting who received medication, in what strength/quantity, date dispensed, etc.
• Perform routine inventory audits, documenting any count discrepancies.
• Secure medications by counting and locking up inventory daily. Restrict access to authorized staff only.
• Install surveillance cameras to monitor controlled substance storage areas.
• Immediately report significant inventory losses to the DEA and local law enforcement.
• Provide documentation demonstrating security procedures were in place and followed.

The consequences of falsely reporting theft are severe. Healthcare providers should take precautions to prevent diversion through rigorous inventory controls and transparency. While the DEA understands occasional legitimate losses occur, falsifying records is illegal and endangers public health.

References

[1] Opioid Overdose Crisis – National Institute on Drug Abuse

[2] Diversion Control Division – U.S. DOJ Drug Enforcement Administration

[3] Civil Penalties – DEA Diversion Control

[4] Administrative Actions – U.S. DOJ Drug Enforcement Administration

[5] Criminal Charges – Controlled Substances Act

[Practitioner’s Manual](https://www.deadiversion.usdoj.gov/pubs/manuals/pract/pract_manual012508.pdf) – U.S. DOJ Drug Enforcement Administration

[Audits of Controlled Substances](https://www.deadiversion.usdoj.gov/pubs/manuals/pharm2/pharm_content.htm) – U.S. DOJ Drug Enforcement Administration

[DEA Form 106](https://www.deadiversion.usdoj.gov/21cfr_reports/theft/index.html) – U.S. DOJ Drug Enforcement Administration