Notice2025-19576

Grace S. Joanita, N.P.; Decision and Order

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Published
October 17, 2025

Issuing agencies

Justice DepartmentDrug Enforcement Administration

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<title>Federal Register, Volume 90 Issue 199 (Friday, October 17, 2025)</title>
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[Federal Register Volume 90, Number 199 (Friday, October 17, 2025)]
[Notices]
[Pages 48344-48346]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19576]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Grace S. Joanita, N.P.; Decision and Order

    On February 6, 2023, the Drug Enforcement Administration (DEA or 
Government) issued an Order to Show Cause (OSC) to Grace S. Joanita, 
N.P., of Cincinnati, Ohio (Registrant). Request for Final Agency Action 
(RFAA), Exhibit (RFAAX) 1, Attachment (Attach.) F, at 1, 4. The OSC 
proposed the revocation of Registrant's DEA registration, No. 
MJ5209677, alleging that Registrant materially falsified her December 
7, 2021 renewal application for registration. Id. at 2 (citing 21 
U.S.C. 824(a)(1)).\1\
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    \1\ The Government further alleged that Registrant committed 
acts inconsistent with the public interest. RFAAX 1, Attach. F, at 
1-2 (citing 21 U.S.C. 823(g)(1)(E)). However, due to the Agency's 
finding that Registrant submitted a materially false application, 
which serves as an independent basis for sanction under 21 U.S.C. 
824(a)(1), the Agency declines to analyze the public interest 
allegation.
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    On July 5, 2023, the Government submitted an RFAA to the 
Administrator requesting that the Agency issue a default final order 
revoking Registrant's registration. RFAA, at 1-3. After carefully 
reviewing the entire record and conducting the analysis as set forth in 
detail below, the Agency finds that Registrant is in default and finds 
that Registrant materially falsified her renewal application. 
Accordingly, the Agency grants the Government's RFAA and revokes 
Registrant's registration.

I. Default Determination

    Under 21 CFR 1301.43, a registrant entitled to a hearing who fails 
to file a timely hearing request ``within 30 days after the date of 
receipt of the [OSC] . . . shall be deemed to have waived their right 
to a hearing and to be in default'' unless ``good cause'' is 
established for the failure. 21 CFR 1301.43(a), (c)(1). In the absence 
of a demonstration of good cause, a registrant who fails to timely file 
an answer also is ``deemed to have waived their right to a hearing and 
to be in default.'' 21 CFR 1301.43(c)(2).
    The OSC notified Registrant of her right to file a written request 
for a hearing and an answer, and that if she failed to file such a 
request and answer, she would be deemed to have waived her right to a 
hearing and be in default.\2\ RFAAX 1, Attach. F, at 2-3 (citing 21 CFR 
1301.43). Registrant did not request a hearing, file an answer, or 
respond to the OSC in any way. RFAA, at 1-3. Accordingly, Registrant is 
in default. 21 CFR 1301.43(c)(1); RFAA, at 1-3.
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    \2\ Based on the Government's submissions in its RFAA dated July 
5, 2023, the Agency finds substantial record evidence that service 
of the OSC on Registrant was adequate. Specifically, the Declaration 
from a DEA Diversion Investigator (DI) indicates that on February 
10, 2023, DI served the OSC on Registrant in-person. RFAAX 1, at 3.
    In addition to DI's Declaration regarding service, the 
Government attached to the RFAA several substantive evidentiary 
exhibits that relate to the OSC allegations. Because this matter is 
a default, only the facts in the OSC are deemed to be admitted, and 
any facts found based on supplementary information submitted by the 
Government must be established by record evidence that meets the 
appropriate evidentiary standard. See Victor Augusto Silva, M.D., 90 
FR 16002, 16002 n.4 (2025) (finding that ``a registrant's deemed 
admission of the factual allegations based on a default applies to 
the facts in the OSC only''); see also Hayriye Gok, M.D., 90 FR 
30266, 30266 n.2 (2025).
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    ``A default, unless excused, shall be deemed to constitute a waiver 
of the [registrant's] right to a hearing and an admission of the 
factual allegations of the [OSC].'' 21 CFR 1301.43(e). Because 
Registrant is in default and has not moved to excuse the default, the 
Agency finds that Registrant has admitted to the factual allegations in 
the OSC. 21 CFR 1301.43(c)(1), (e), (f)(1).
    Further, ``[i]n the event that [a registrant] . . . is deemed to be 
in default . . . DEA may then file a request for final agency action 
with the Administrator, along with a record to support its request. In 
such circumstances, the Administrator may enter a default final order 
pursuant to

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[21 CFR] 1316.67.'' 21 CFR 1301.43(f)(1). Here, the Government has 
requested final agency action based on Registrant's default pursuant to 
21 CFR 1301.43(c), (f), and 1301.46. RFAA, at 1-3; see also 21 CFR 
1316.67.

II. Material Falsification

A. Findings of Fact

    The Agency finds that, in light of Registrant's default, the 
factual allegations in the OSC are deemed admitted. 21 CFR 1301.43(e). 
Accordingly, Registrant is deemed to have admitted to each of the 
following facts.\3\ On or about December 7, 2021, Registrant submitted 
a timely renewal application for her DEA registration, No. MJ5209677. 
RFAAX 1, Attach. F, at 1. The renewal application requested information 
regarding Registrant's fee exemption status. Id. at 1-2. Specifically, 
the application requested the name, title, phone number, and email 
address of a certifying official, and the name of a fee exempt 
institution. Id. at 2. Registrant responded to the fee exemption 
prompts, and provided the name of a certifying official for whom she 
had not worked since November 20, 2019. Id. Based on the information 
Registrant provided in response to the fee exemption prompts, her 
registration was granted ``fee exempt'' status and she therefore did 
not pay the required fee to renew her registration. Id. In December 
2021, January 2022, and August 2022, DEA provided Registrant 
opportunities to pay the required registration fee and fill out a 
Change of DEA Fee Exemption Status form. Id. At the time the OSC was 
issued, Registrant had not paid the required fee or filled out the 
Change of DEA Fee Exemption Status form. Id.
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    \3\ According to the Controlled Substances Act (CSA), 
``[f]indings of fact by the [DEA Administrator], if supported by 
substantial evidence, shall be conclusive.'' 21 U.S.C. 877. Here, 
where Registrant is found to be in default, all the factual 
allegations in the OSC are deemed to be admitted. These uncontested 
and deemed admitted facts constitute evidence that exceeds the 
``substantial evidence'' standard of 21 U.S.C. 877; it is unrebutted 
evidence.
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B. Discussion

    A DEA registration may be denied, suspended, or revoked upon a 
finding that the applicant or registrant materially falsified any 
application filed pursuant to or required by the Controlled Substances 
Act (CSA). 21 U.S.C. 824(a)(1).\4\ To present a prima facie case for 
material falsification, the Government's record evidence must show (1) 
the submission of an application, (2) containing a false statement and/
or omitting information that the application requires, (3) when the 
submitter knew or should have known that the statement is false and/or 
that the omitted information existed and the application required its 
disclosure, and (4) the false statement and/or required but omitted 
information is material, that is, it ``connect[s] to at least one of 
[the section 823] factors that, according to the CSA, [the 
Administrator] `shall' consider'' when analyzing ``whether issuing a 
registration `would be inconsistent with the public interest.' '' Frank 
Joseph Stirlacci, M.D., 85 FR 45229, 45238 (2020) (citing 21 U.S.C. 823 
and Kungys, 485 U.S. at 771); see also Sasha Melissa Ikramelahai, 90 FR 
32017, 32019 (2025); Michael Bouknight, 90 FR 31247, 31249 (2025).
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    \4\ A statutory basis to deny an application pursuant to section 
823 is also a basis to revoke or suspend a registration pursuant to 
section 824, and vice versa, because doing ``otherwise would mean 
that all applications would have to be granted only to be revoked 
the next day . . . .'' Robert Wayne Locklear, M.D., 86 FR 33738, 
33744-45 (2021) (collecting cases).
     The Supreme Court's decision in Kungys v. United States, 485 
U.S. 759 (1988), and its progeny, guide the Agency's implementation 
of these CSA provisions.
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    Regarding materiality, Kungys holds that a statement is material if 
it is ``predictably capable of affecting, i.e., had a natural tendency 
to affect, the [Agency's] official decision,'' or stated differently, 
``had a natural tendency to influence the decision.'' Kungys, 485 U.S. 
at 771-72. As already discussed, materiality, for the purposes of the 
CSA, is tied to the factors that the Administrator ``shall'' consider 
when determining whether issuance of a registration ``would be 
inconsistent with the public interest.'' 21 U.S.C. 823; Kungys, 485 
U.S. at 771-72; Stirlacci, 85 FR at 45234, 45238.
    The Government has the burden of proof in this proceeding. 21 CFR 
1301.44. The Government must establish material falsification with 
record evidence that is clear, unequivocal, and convincing. Kungys, 485 
U.S. at 772; Stirlacci, 85 FR at 45230-39. Here, the Agency finds that 
the Government's clear, unequivocal, and convincing record evidence 
presents a prima facie case that Registrant submitted a materially 
false application. 21 U.S.C. 823, 824(a)(1).
    As the Agency finds above, Registrant submitted a renewal 
application for DEA registration and the application requested 
information regarding exemption from paying the required fee. RFAAX 1, 
Attach. F, at 2; see also 21 CFR 1301.13(e) (setting forth the fee 
schedule); 21 CFR 1301.21 (setting forth the conditions for fee 
exemption). Registrant responded to the fee exemption prompts and 
provided employment information--specifically, the name of a certifying 
official--that was false at the time she submitted her renewal 
application, because she had not worked for that certifying official in 
over two years. RFAAX 1, Attach. F, at 2. By responding to the fee 
exemption prompts, Registrant falsely represented that she was entitled 
to fee exemption. Id. In other words, on her renewal application, 
Registrant claimed to meet the regulatory requirements for a fee 
exemption by representing that she worked for a certifying official for 
whom she did not work for at the time, and she knew or should have 
known that she did not work for the certifying official when she 
submitted her application. Id.; see also Ikramelahai, 90 FR at 32020 
(finding registrant created the false impression that she possessed a 
state license when, in fact, it belonged to a different practitioner). 
Thus, Registrant's renewal application contained false statements.
    In addition, the false statements were material. Specifically, 
Registrant's falsities are connected to public interest factor D, under 
which DEA considers an applicant's compliance or non-compliance with 
Federal laws relating to controlled substances. 21 U.S.C. 823(g)(1)(D). 
DEA's registration and renewal process are governed by the CSA and its 
implementing regulations--in other words, Federal laws which relate to 
controlled substances. In applying for a DEA registration or renewing a 
DEA registration, an applicant or registrant must comply with Federal 
laws that govern the issuance and renewal of controlled substance 
registrations. See, e.g., 21 U.S.C. 821 (authorizing the Attorney 
General to promulgate regulations and charge fees relating to the 
registration and dispensing of controlled substances); 21 U.S.C. 
822(a)(2) (``Every person who dispenses, or who proposes to dispense, 
any controlled substance, shall obtain from the Attorney General a 
registration issued in accordance with the rules and regulations 
promulgated by him.''); 21 U.S.C. 823(g)(1) (setting forth the factors 
that the Attorney General must consider when determining whether to 
grant or deny a registration); 21 CFR 1301.13 (establishing application 
requirements, including registration fees tied to specific regulated 
activities); 21 CFR 1301.21 (setting forth conditions for fee 
exemption); Gonzales v. Raich, 545 U.S. 1, 14 (2005) (``The CSA and its 
implementing regulations set forth strict requirements regarding 
registration

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. . . .''). Thus, evaluating an applicant's or registrant's compliance 
with the Federal laws that govern registration and renewal, including 
DEA's fee schedule and fee exemptions, is appropriately considered 
under factor D.\5\ 21 U.S.C. 823(g)(1)(D).
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    \5\ To be clear, the Agency is not finding that Registrant 
violated the above-referenced portions of the CSA or its 
implementing regulations. This information is presented to give 
context to the materiality of Registrant's falsification. The 
Agency's only finding against Registrant is that she materially 
falsified a renewal application which is grounds for revocation 
under 21 U.S.C. 824(a)(1).
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    Accordingly, making a false statement regarding entitlement to fee 
exemption has a natural tendency to influence the Agency's decision 
regarding whether issuance of a registration ``would be inconsistent 
with the public interest.'' 21 U.S.C. 823; Kungys, 485 U.S. at 771-72; 
Stirlacci, 85 FR at 45234, 45238; RFAAX 1, Attach. F, at 1-2. 
Therefore, the falsities in Registrant's application were ``predictably 
capable of affecting'' DEA's decision to renew her registration, and 
therefore the Agency finds that they were material. Kungys, 485 U.S. at 
771-72.
    In sum, the Agency finds clear, unequivocal, and convincing record 
evidence, based on Registrant's admissions, that she submitted a 
materially false renewal application for registration. 21 U.S.C. 
824(a)(1); 21 CFR 1301.43(e).
    As a result of this established violation, the Agency finds that 
the Government has established a prima facie case for sanction, that 
Registrant did not rebut that prima facie case, and that there is 
clear, unequivocal, and convincing record evidence supporting the 
revocation of Registrant's registration. 21 U.S.C. 824(a)(1).

C. Sanction

    Where, as here, the Government has presented a prima facie case 
showing that Registrant submitted a materially false application for 
registration renewal, the burden shifts to Registrant to show why she 
can be trusted with a registration. Morall v. Drug Enf't Admin., 412 
F.3d 165, 181 (D.C. Cir. 2005); Jones Total Health Care Pharmacy, LLC 
v. Drug Enf't Admin., 881 F.3d 823, 830 (11th Cir. 2018); Garrett 
Howard Smith, M.D., 83 FR 18882, 18904 (2018). The issue of trust is a 
fact-dependent determination based on the circumstances presented by 
the individual practitioner. Jeffrey Stein, M.D., 84 FR 46968, 46972 
(2019); see also Jones Total Health Care Pharmacy, 881 F.3d at 833. 
Historically, the Agency has considered acceptance of responsibility, 
egregiousness, and deterrence when making this assessment.
    Specifically, the Agency requires the practitioner to accept 
responsibility for his or her violation. Jones Total Health Care 
Pharmacy, 881 F.3d at 833; ALRA Labs, Inc. v. Drug Enf't Admin., 54 
F.3d 450, 452 (7th Cir. 1995). Acceptance of responsibility must be 
unequivocal. Janet S. Pettyjohn, D.O., 89 FR 82639, 82641 (2024); 
Mohammed Asgar, M.D., 83 FR 29569, 29573 (2018); see also Jones Total 
Health Care Pharmacy, 881 F.3d at 830-31.
    In addition, the Agency considers the egregiousness and extent of 
the misconduct in determining the appropriate sanction. Jones Total 
Health Care Pharmacy, 881 F.3d at 834 & n.4. The Agency also considers 
the need to deter similar acts by Registrant, by current registrants, 
and by future applicants for registration. Stein, 84 FR at 46972-73.
    Here, Registrant did not timely request a hearing, or timely or 
properly answer the allegations, and was therefore deemed to be in 
default. 21 CFR 1301.43(c)(1), (e), (f)(1); RFAA, at 1-3. To date, 
Registrant has not filed a motion with the Office of the Administrator 
to excuse the default. 21 CFR 1301.43(c)(1). Registrant has thus failed 
to answer the allegations contained in the OSC and has not otherwise 
availed herself of the opportunity to refute the Government's case. As 
such, Registrant has not accepted responsibility for the proven 
violations, has made no representations regarding her future compliance 
with the CSA, and has not made any demonstration that she can be 
trusted with registration.
    Moreover, the evidence presented by the Government shows that 
Registrant provided false information regarding her fee exempt status. 
Providing false information as part of an application process for 
controlled substance privileges governed by Federal law calls into 
question Registrant's honesty, trustworthiness, and ability or 
willingness to comply with the laws governing controlled substances. To 
permit Registrant to maintain a registration under these circumstances 
would send a dangerous message that DEA does not expect compliance with 
its registration requirements and that the registration fees required 
by statute and regulation can be circumvented without consequence by 
making false statements. Registrant and the regulated community must be 
on notice that DEA's registration and renewal process, to include the 
required fees, is governed by Federal law, that DEA will strictly 
enforce those Federal laws, and that DEA expects applicants and 
registrants to adhere to those Federal laws.
    Accordingly, the Agency will order the revocation of Registrant's 
registration.

Order

    Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 
U.S.C. 824(a), I hereby revoke DEA Certificate of Registration No. 
MJ5209677 issued to Grace S. Joanita, N.P. Further, pursuant to 28 CFR 
0.100(b) and the authority vested in me by 21 U.S.C. 823(g)(1), I 
hereby deny any pending applications of Grace S. Joanita, N.P., to 
renew or modify this registration, as well as any other pending 
application of Grace S. Joanita, N.P., for additional registration in 
Ohio. This Order is effective November 17, 2025.

Signing Authority

    This document of the Drug Enforcement Administration was signed on 
October 1, 2025, by Administrator Terrance Cole. That document with the 
original signature and date is maintained by DEA. For administrative 
purposes only, and in compliance with requirements of the Office of the 
Federal Register, the undersigned DEA Federal Register Liaison Officer 
has been authorized to sign and submit the document in electronic 
format for publication, as an official document of DEA. This 
administrative process in no way alters the legal effect of this 
document upon publication in the Federal Register.

Heather Achbach,
Federal Register Liaison Officer, Drug Enforcement Administration.
[FR Doc. 2025-19576 Filed 10-16-25; 8:45 am]
BILLING CODE 4410-09-P


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Indexed from Federal Register on October 17, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.