Notice2025-19599

Ali Elhorr, M.D.; Decision and Order

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Published
October 20, 2025

Issuing agencies

Justice DepartmentDrug Enforcement Administration

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<title>Federal Register, Volume 90 Issue 200 (Monday, October 20, 2025)</title>
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[Federal Register Volume 90, Number 200 (Monday, October 20, 2025)]
[Notices]
[Pages 48375-48378]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19599]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration


Ali Elhorr, M.D.; Decision and Order

    On May 22, 2025, the Drug Enforcement Administration (DEA or 
Government) issued an Order to Show Cause (OSC) to Ali Elhorr, M.D. 
(Applicant), of Dearborn, Michigan. Request for Final Agency Action 
(RFAA), Exhibit (RFAAX) 1, at 1, 4. The OSC proposed the denial of 
Applicant's application for DEA registration, Control No. W22137646C, 
alleging that Applicant is mandatorily excluded from participation in 
Medicare, Medicaid, and all Federal health care programs pursuant to 42 
U.S.C. 1320a-7(a) and that Applicant materially falsified his 
application for registration. Id., at 2-3 (citing 21 U.S.C. 824(a)(5), 
824(a)(1)).
    On July 7, 2025, the Government submitted an RFAA requesting that 
the Agency issue a default final order denying Applicant's application. 
RFAA, at 1, 5. After carefully reviewing the entire record and 
conducting the analysis as set forth in detail below, the Agency finds 
that Applicant is in default, finds that Applicant is

[[Page 48376]]

mandatorily excluded, and finds that Applicant materially falsified his 
application for registration. Accordingly, the Agency grants the 
Government's RFAA and denies Applicant's application.

I. Default Determination

    Under 21 CFR 1301.43, an applicant 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, an applicant 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). Unless excused, a default 
constitutes ``an admission of the factual allegations of the [OSC].'' 
21 CFR 1301.43(e).
    The OSC notified Applicant of his right to file a written request 
for hearing and answer, and that if he failed to file such a request 
and answer, he would be deemed to have waived his right to a hearing 
and be in default.\1\ RFAAX 1, at 3 (citing 21 CFR 1301.43). Applicant 
has not requested a hearing or filed an answer. RFAA, at 2. Thus, the 
Agency finds that Applicant is in default and therefore has admitted to 
the factual allegations in the OSC. 21 CFR 1301.43(e).
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    \1\ Based on the Government's submission in its RFAA dated July 
7, 2025, the Agency finds that service of the OSC on Applicant was 
adequate. The included attachment shows that on June 3, 2025, a 
Diversion Investigator personally served the OSC on Applicant and 
Applicant signed a receipt of service. RFAAX 2.
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II. Mandatory Exclusion

A. Findings of Fact

    The Agency finds that, in light of Applicant's default, the factual 
allegations in the OSC are deemed admitted. 21 CFR 1301.43(e). 
Accordingly, Applicant admits that in September 2016, he pled guilty to 
health care fraud in violation of 18 U.S.C. 1347. RFAAX 1, at 2. As a 
result of Applicant's conviction,\2\ the United States Department of 
Health and Human Services, Office of Inspector General (HHS/OIG), 
mandatorily excluded Applicant from participation in Medicare, 
Medicaid, and all Federal health care programs pursuant to 42 U.S.C. 
1320a-7(a) for a minimum period of 15 years, effective on February 20, 
2017. Id.
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    \2\ The underlying conviction forming the basis for mandatory 
exclusion from participation in Federal health care programs need 
not involve controlled substances to provide the grounds for 
revocation or denial pursuant to section 824(a)(5). See Moustafa M. 
Aboshady, M.D., 90 FR 15992, 15993 n.5 (2025) (collecting cases).
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B. Discussion

    Pursuant to 21 U.S.C. 824(a)(5), the Agency \3\ is authorized to 
suspend or revoke a registration upon finding that the registrant ``has 
been excluded (or directed to be excluded) from participation in a 
program pursuant to [42 U.S.C. 1320a-7(a)].'' The Agency has 
consistently held that it may also deny an application upon finding 
that an applicant has been excluded from a Federal health care program. 
Mark Agresti, M.D., 90 FR 30098, 30099 (2025); Samirkumar Shah, M.D., 
89 FR 71931, 71933 (2024); Arvinder Singh, M.D., 81 FR 8247, 8248 
(2016).
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    \3\ The Controlled Substances Act (CSA) delegates power to the 
Attorney General, who has delegated it to the Administrator of the 
DEA (the Agency) by 28 CFR 0.100.
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    Here, the Agency finds substantial record evidence \4\ that 
Applicant is mandatorily excluded from participation in Medicare, 
Medicaid, and all Federal health care programs pursuant to 42 U.S.C. 
1320a-7(a) for a minimum of 15 years. RFAAX 1, at 2. Accordingly, the 
Agency finds that the Government established a prima facie case for 
sanction based on mandatory exclusion, that Applicant did not rebut 
that prima facie case, and that there is substantial record evidence 
supporting the imposition of sanctions. 21 U.S.C. 824(a)(5).
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    \4\ According to the CSA, ``[f]indings of fact by the [DEA 
Administrator], if supported by substantial evidence, shall be 
conclusive.'' 21 U.S.C. 877. Here, where Applicant 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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III. Material Falsification

A. Findings of Fact

    The Agency finds that, in light of Applicant's default, the factual 
allegations in the OSC are deemed admitted. 21 CFR 1301.43(e). 
Accordingly, Applicant is deemed to have admitted to each of the 
following facts. On October 19, 2022, Applicant submitted an 
application for DEA registration as a practitioner in Schedules II 
through V. RFAAX 1, at 2. The application form contained the following 
liability question: ``[h]as the applicant ever been . . . excluded or 
directed to be excluded from participation in a medicare or state 
health care program, or [is] any such action pending?'' Id., at 3 
(``Liability Question 1''). Applicant answered ``No'' to Liability 
Question 1. Id. At the time he submitted his application, Applicant was 
mandatorily excluded from ``participation in Medicare, Medicaid, and 
all Federal health care programs'' by HHS/OIG. Id.; see supra Section 
II.

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 CSA. 21 U.S.C. 
824(a)(1).\5\ 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 ``connects 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.'' Michael Bouknight, 90 FR 
31247, 31249 (2025) (quoting Frank Joseph Stirlacci, M.D., 85 FR 45229, 
45238 (2020)) (cleaned up) (citing 21 U.S.C. 823 and Kungys, 485 U.S. 
at 771). The Government must establish material falsification with 
record evidence that is clear, unequivocal, and convincing. Kungys, 485 
U.S. at 772; Michael Bouknight, 90 FR at 31249-50; Sasha Melissa 
Ikramelahai, 90 FR 32017, 32019-20 (2025); Frank Joseph Stirlacci, 
M.D., 85 FR at 45230-39.
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    \5\ 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 United States 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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    First, the Government must prove that the applicant or registrant 
submitted an application for registration pursuant to the CSA.\6\ 21 
U.S.C. 824(a)(1); see also 21 U.S.C. 822 (persons required to 
register); 21 U.S.C. 823(g)(1) (registration requirements).
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    \6\ ``The CSA and its implementing regulations set forth strict 
requirements regarding registration'' as a part of Congress' 
``closed regulatory system'' for the manufacture, distribution, 
dispensing, and possession of controlled substances. Gonzales v. 
Raich, 545 U.S. 1, 12-14 (2005).
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    Second, the Government must prove that the application contained a 
false

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statement or omitted information that the application required, either 
of which may constitute a material falsity. See, e.g., Emed Medical 
Company LLC and Med Assist Pharmacy, 88 FR 21719, 21720 (2023) 
(applicant falsely answered ``no'' to Liability Question 3 on seventeen 
applications when the true answer was ``yes''); Richard J. Settles, 
D.O., 81 FR 64940, 64945-46 (2016) (applicant failed to disclose an 
interim consent agreement restricting his license based on findings 
that he issued controlled substance prescriptions without federal or 
state legal authority to do so). In making this assessment, the Agency 
will examine the entire application, including registrant's ``yes/no'' 
answers to the liability questions and any follow-up response(s). 
Daniel A. Glick, D.D.S., 80 FR 74800, 74802, 74808-09 (2015). To 
establish an omission, the Government must show both that omitted 
information existed and that the application required inclusion of that 
information. See, e.g., Richard A. Herbert, M.D., 76 FR 53942, 53956 
(2011) (omission of a probation which the application required to be 
identified); Michel P. Toret, M.D., 82 FR 60041, 60042 (2017) 
(Voluntary Surrender Form alone is insufficient evidence to find 
material falsification based on registrant's ``no'' answer to the 
question regarding ``surrender[s] (for cause)'').
    Third, the Government must prove that the applicant or registrant 
knew or should have known that the statement is false and/or that the 
omitted information existed and the application required its 
disclosure. See John J. Cienki, M.D., 63 FR 52293, 52295 (1998) (``[I]n 
finding that there has been a material falsification of an application, 
it must be determined that the applicant knew or should have known that 
the response given to the liability question was false.''); Samuel 
Arnold, D.D.S., 63 FR 8687, 8688 (1998) (``It is also undisputed that 
Respondent knew that his Ohio dental license had previously been 
suspended.''); Bobby Watts, M.D., 58 FR 46995, 46995 (1993) 
(``Respondent knew that the Tennessee Board of Medical Examiners had 
suspended his medical license on May 7, 1987, and had placed his state 
medical license on probation on May 2, 1988.''); see also Frank Joseph 
Stirlacci, M.D., 85 FR at 45236-37 & nn.22-23 (collecting cases).
    Fourth, the Government must prove that the false statement and/or 
required but omitted information is ``material.'' The Kungys Court held 
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.'' \7\ 21 U.S.C. 823; Kungys, 485 U.S. at 771-72; Frank 
Joseph Stirlacci, M.D., 85 FR at 45234, 45238.
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    \7\ Because the bases for revocation listed in 21 U.S.C. 824 may 
also serve as bases to deny an application, see supra n.5, a finding 
of materiality may also be tied to 21 U.S.C. 824(a)(1)-(5).
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    The Government has the burden of proof in this proceeding. 21 CFR 
1301.44. Here, the Agency finds that the Government's clear, 
unequivocal, and convincing record evidence presents a prima facie case 
that Applicant submitted a materially false application. 21 U.S.C. 
823(g)(1), 824(a)(1).
    In light of Applicant's default admissions, the Agency finds clear, 
unequivocal, and convincing record evidence of the following facts. On 
October 19, 2022, Applicant submitted an application for DEA 
registration. RFAAX 1, at 2. The application required Applicant to 
state whether or not he has ever been excluded from participation in 
Federal or state health care programs, to which Applicant responded 
``no'' despite having been excluded from all Federal health care 
programs by HHS/OIG. Id., at 3. Thus, Applicant falsified his 
application by representing that he was not excluded from Federal 
health care programs when he, in fact, knew or should have known that 
he was excluded and that the application required disclosure of this 
information. See Lee S. Altman, M.D., 90 FR 23955, 23958 (2025) (``the 
applicant bears the responsibility to carefully read the liability 
questions and to answer them honestly''); Zelideh I. Cordova-Velazco, 
M.D., 83 FR 62902, 62906 (2018) (``[a]llegedly misunderstanding or 
misinterpreting liability questions does not relieve the applicant of 
this responsibility'').
    In addition, this falsification was material. Applicant's provision 
of false information in response to Liability Question 1 on his 
application deprived the Agency of the legally relevant information 
needed to make an informed decision regarding his application. See 21 
U.S.C. 824(a)(5); Lee S. Altman, M.D., 90 FR at 23958; Frank Joseph 
Stirlacci, M.D., 85 FR at 45234. Therefore, Applicant's provision of 
false information was ``predictably capable of affecting . . . the 
[Agency's] official decision.'' Kungys, 485 U.S. at 771; see also 
Daniel R. Nevarre, M.D., 87 FR 3340, 3342-43 (2022) (finding that 
providing a false response regarding exclusion from health care 
programs constitutes material falsification); Michael Jones, M.D., 86 
FR 20728, 20730-32 (2021) (same).
    As a result of this established violation, the Agency finds that 
the Government has established a prima facie case for sanction based on 
material falsification, that Applicant did not rebut that prima facie 
case, and that there is substantial record evidence supporting the 
imposition of sanctions. 21 U.S.C. 824(a)(1).

IV. Sanction

    Where, as here, the Government has presented a prima facie case 
showing that an applicant is mandatorily excluded from Federal health 
care programs and submitted a materially false application for 
registration, the burden shifts to Applicant to show why he 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. See Michael Bouknight, 90 FR at 
31250; Sasha Melissa Ikramelahai, 90 FR at 32020-21; Frank Joseph 
Stirlacci, M.D., 85 FR at 45239-40.
    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 
Applicant and by future applicants for registration. Jeffrey Stein, 
M.D., 84 FR at 46972-73.
    Here, Applicant failed to answer the allegations contained in the 
OSC and did not otherwise avail himself of the opportunity to refute 
the Government's

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case. See supra Section I. Thus, there is no record evidence that 
Applicant takes responsibility, let alone unequivocal responsibility, 
for the misconduct. Accordingly, he has not convinced the Agency that 
his future controlled-substance-related actions will comply with the 
CSA such that he can be entrusted with the responsibilities of a 
registration.
    Further, the interests of specific and general deterrence weigh in 
favor of denial. Applicant's conduct in this matter concerns the CSA's 
``strict requirements regarding registration'' and, therefore, goes to 
the heart of the CSA's ``closed regulatory system'' specifically 
designed ``to conquer drug abuse and to control the legitimate and 
illegitimate traffic in controlled substances.'' Gonzales, 545 U.S. at 
12-14. If the Agency were to issue a registration to Applicant under 
these circumstances, it would send a dangerous message that compliance 
with the law is not essential to obtaining a registration.
    Accordingly, the Agency will order the denial of Applicant's 
application.\8\
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    \8\ In this matter there are two separate and distinct grounds 
by which the Government proposed denial, Applicant's mandatory 
exclusion and his material falsification; each ground, standing 
alone, supports the Agency's decision to deny.
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Order

    Pursuant to 28 CFR 0.100(b) and the authority vested in me by 21 
U.S.C. 824, I hereby deny the pending application for a DEA Certificate 
of Registration, Control No. W22137646C, submitted by Ali Elhorr, M.D., 
as well as any other pending applications of Ali Elhorr, M.D., for 
additional registration in Michigan. This Order is effective November 
19, 2025.

Signing Authority

    This document of the Drug Enforcement Administration was signed on 
October 9, 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. 2025-19599 Filed 10-17-25; 8:45 am]
BILLING CODE 4410-09-P


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Indexed from Federal Register on October 20, 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.