Notice2026-19821
Johann Farley, M.D.; Decision and Order
Primary source
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Published
September 29, 2026
Issuing agencies
Justice DepartmentDrug Enforcement Administration
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<title>Federal Register, Volume 91 Issue 187 (Tuesday, September 29, 2026)</title>
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[Federal Register Volume 91, Number 187 (Tuesday, September 29, 2026)]
[Notices]
[Pages 61440-61442]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19821]
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DEPARTMENT OF JUSTICE
Drug Enforcement Administration
[Docket No. 25-73]
Johann Farley, M.D.; Decision and Order
On August 29, 2025, the Drug Enforcement Administration (DEA or
Government) issued an Order to Show Cause (OSC) to Johann Farley, M.D.,
of Merrillville, Indiana (Registrant). Request for Final Agency Action
(RFAA), Exhibit (RFAAX) 1, at 1, 3. The OSC proposed the revocation of
Registrant's DEA registration, No. BF8869628,\1\ alleging that he has
been mandatorily excluded ``from participation in Medicare, Medicaid,
and all Federal health care programs pursuant to 42 U.S.C. 1320a-
7(a).'' Id. at 1 (citing 21 U.S.C. 824(a)(5)).
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\1\ According to the OSC and Agency records, Registrant's
registration expired on September 30, 2025. RFAAX 1, at 1. The
Agency has previously held that it is within its jurisdiction and
discretion to adjudicate a matter to finality where a registration
expired after issuance of an OSC and before issuance of a final
order. See Jeffrey D. Olsen, M.D., 84 FR 68474, 68475-79 (2019); see
also Abdul Naushad, M.D., 89 FR 54059, 54060 (2024) (applying the
same principle and adjudicating a matter to finality where a
registration expired before issuance of the OSC). Here, adjudicating
the matter to finality will achieve similar goals as in Olsen; it
will support future interactions between the Agency and Registrant,
inform current and prospective members of the registrant community
about the Agency's expectations, provide continuing education to all
DEA personnel, help coordinate law enforcement efforts, and inform
stakeholders, such as legislators and the public, about the Agency's
work. Olsen, 84 FR at 68479.
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On August 10, 2026, the Government submitted an RFAA to the
Administrator requesting that the Agency \2\ issue a default final
order revoking Registrant's registration. RFAA, at 1, 4. After
carefully reviewing the entire record and conducting the analysis as
set forth in detail below, the Agency grants the Government's RFAA and
revokes Registrant's registration.
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\2\ The Controlled Substances Act delegates authority to the
Attorney General, who has delegated it to the Administrator of DEA
(the Agency). 28 CFR 0.100.
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I. Procedural History
On August 29, 2025, a DEA Diversion Investigator personally served
the OSC on Registrant and sent an electronic copy of the OSC to his
registered email address. RFAAX 2, at 1-2. On September 26, 2025,
Registrant, through counsel, submitted a timely hearing request and
answer to the Office of Administrative Law Judges. RFAAX 3. The matter
was assigned to an administrative law judge, and on April 29, 2026, the
Chief Administrative Law Judge (Chief ALJ) issued an Order for
Prehearing Statements, ordering the Government to file a prehearing
statement by May 13, 2026, and Registrant to file a prehearing
statement by May 27, 2026. RFAAX 4, at 2, 4.
The Government timely filed its prehearing statement on May 12,
2026. RFAAX 5. On June 3, 2026, the Chief ALJ issued an Order Directing
Compliance, noting that Registrant had not filed a prehearing statement
by the initial May 27 deadline, and providing Registrant with a second
opportunity to file a prehearing statement by June 8, 2026. RFAAX 6, at
1.
On the same day, Registrant sent an email to OALJ stating that the
Order Directing Compliance was the `` `first notification' '' he had
received in this matter, after which the Government forwarded its
prehearing statement to Registrant. RFAAX 7, at 1, n.1. On June 9,
2026, the Chief ALJ issued an Order Finding [Registrant] in Default and
Terminating Proceedings (Termination Order), finding that Registrant
failed for the second time to file a prehearing statement.\3\ RFAAX 7.
The Chief ALJ further found Registrant in default for ``display[ing] a
pattern of noncompliance with [the Chief ALJ's] orders'' and failing to
defend his case. Id. at 2 (citing 21 CFR 1301.43(c)(3)). Accordingly,
the Chief ALJ terminated the proceedings. Id.
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\3\ The Termination Order notes that the Order for Prehearing
Statements, Government's prehearing statement, and Order Directing
Compliance were sent to the correct email address on file for
Registrant's attorney. RFAAX 7, at 1, n.1. The Termination Order
also notes that OALJ ``received no non-delivery notification when
serving either the [Order for Prehearing Statements] or [Order
Directing Compliance]'' on Registrant. Id.
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II. Registrant Is in Default
DEA regulations provide that a registrant ``who has requested a
hearing fails to plead . . . or otherwise defend'' his case, shall be
deemed to be in default. 21 CFR 1301.43(c)(3). Unless excused, a
default is deemed to constitute ``an admission of the factual
allegations of the [OSC].'' 21 CFR 1301.43(e).
The OSC notified Registrant that he would ``be deemed to have
waived the right to a hearing and to be in default'' if he failed to
plead or defend his case after requesting a hearing. RFAAX 1, at 2
(citing 21 CFR 1301.43(c)(3)). The Chief ALJ's Order for Prehearing
Statements and Order Directing Compliance also notified Registrant of
the same. RFAAX 4, at 4; RFAAX 6, at 1.
Registrant was provided with two opportunities to file a prehearing
statement and was notified in the OSC, Order for Prehearing Statements,
and Order Directing Compliance that a failure to defend his case would
result in a finding of default and deemed admission of the OSC's
factual allegations. RFAAX 1, at 2; RFAAX 4, at 4; RFAAX 6, at 1. And
yet, Registrant failed to file a prehearing statement as ordered by the
Chief ALJ in two separate orders. RFAAX 4; RFAAX 6.
Accordingly, the Agency finds that the Chief ALJ did not err in
finding
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Registrant in default and terminating proceedings pursuant to 21 CFR
1301.43(c)(3). RFAAX 7; see Hollywood Med. Rehab. Care, Inc., 90 FR
47827, 47827-28 (2025) (affirming the ALJ's finding of default where
the registrant failed to comply with multiple deadlines to file an
answer); see also Robert L. Carter, D.D.S., 90 FR 9631, 9631-32 (2025)
(collecting cases and affirming the ALJ's authority to find a waiver of
the right to a hearing and terminate proceedings for noncompliance with
filing deadlines); Mert Kivanc, D.O., 90 FR 48429, 48429 (2025) (same).
The Agency further finds that Registrant is in default and,
therefore, is deemed to have admitted to the factual allegations in the
OSC. 21 CFR 1301.43(c)(3), (e), (f)(1).
III. Findings of Fact
In light of Registrant's default, the factual allegations in the
OSC are deemed admitted. 21 CFR 1301.43(e). Accordingly, the Agency
finds, and Registrant is deemed to have admitted, that on June 11,
2024, in the United States District Court for the Northern District of
Indiana, Registrant pleaded guilty to one count of health care fraud,
in violation of 18 U.S.C. 1347. RFAAX 1, at 2. Further, based on this
conviction, the U.S. Department of Health and Human Services, Office of
Inspector General (HHS/OIG), mandatorily excluded Registrant 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 12
years, effective May 20, 2025. Id. Accordingly, the Agency finds
substantial record evidence that Registrant has been mandatorily
excluded from participation in Medicare, Medicaid, and all Federal
health care programs pursuant to 42 U.S.C. 1320a-7(a).
IV. Discussion
Pursuant to 21 U.S.C. 824(a)(5), the Attorney General 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 section 1320a-7(a) of Title 42.'' The exclusion
must be mandatory, rather than permissive, to constitute a basis for
revocation under 21 U.S.C. 824(a)(5). Kansky J. Delisma, M.D., 85 FR
23845, 23849 (2020). 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 pursuant to 21 U.S.C. 824(a)(5). Moustafa M. Aboshady, M.D.,
90 FR 15992, 15993 n.5 (2025).
The Government has the burden of proof in this proceeding, 21 CFR
1301.44(e), and the Agency must make its findings based on
``substantial [record] evidence.'' \4\ 5 U.S.C. 556(d); see 5 U.S.C.
706(2); 21 U.S.C. 877. If the Government meets its burden of
establishing a prima facie case that Registrant ``has been excluded (or
directed to be excluded) from participation in a program pursuant to
[42 U.S.C.] 1320a-7(a),'' 21 U.S.C. 824(a)(5), then the burden shifts
to Registrant to demonstrate that he can be trusted with registration.
Delisma, 85 FR at 23846, 23849, 23851.
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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 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.
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Here, the Agency found above that HHS/OIG mandatorily excluded
Registrant from participation in Medicare, Medicaid, and all Federal
health care programs pursuant to 42 U.S.C. 1320a-7(a). Accordingly, the
Agency finds that the Government has established a prima facie case for
revoking Registrant's registration under 21 U.S.C. 824(a)(5).
V. Sanction
Where, as here, the Government has met its prima facie burden of
showing that Registrant's registration should be revoked, the burden
shifts to Registrant to show why he can be entrusted with a
registration. Morall v. Drug Enf't Admin., 412 F.3d 165, 174 (D.C. Cir.
2005); Jones Total Health Care Pharmacy, LLC v. Drug Enf't Admin., 881
F.3d 823, 830 (11th Cir. 2018); Delisma, 85 FR at 23853. The issue of
trust is necessarily a fact-dependent determination based on the
circumstances presented by the individual registrant. Jones Total
Health Care Pharmacy, 881 F.3d at 833; Jeffrey Stein, M.D., 84 FR
46968, 46972 (2019). Moreover, as ``past performance is the best
predictor of future performance,'' the Agency requires that a
registrant who has committed acts inconsistent with the public interest
accepts responsibility for those acts, understands the gravity and
seriousness of the misconduct, and demonstrates that the registrant
will not engage in future misconduct. ALRA Labs., Inc. v. Drug Enf't
Admin., 54 F.3d 450, 452 (7th Cir. 1995); Jones Total Health Care
Pharmacy, 881 F.3d at 831-33. The Agency requires a registrant's
unequivocal acceptance of responsibility. Janet S. Pettyjohn, D.O., 89
FR 82639, 82641 (2024); Mohammed Asgar, M.D., 83 FR 29569, 29573
(2018); Jones Total Health Care Pharmacy, 881 F.3d at 830-31. In
addition, a registrant's candor during the investigation and hearing,
if one is requested, is an important factor in determining acceptance
of responsibility and the appropriate sanction. Jones Total Health Care
Pharmacy, 881 F.3d at 830-31; Hoxie v. Drug Enf't Admin., 419 F.3d 477,
483-84 (6th Cir. 2005). Further, the Agency considers the egregiousness
and extent of the misconduct as significant factors 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 a
registrant and by the community of registrants. Stein, 84 FR at 46972-
73.
Here, although Registrant initially requested a hearing, he failed
to ``plead . . . or otherwise defend'' and was deemed to be in default.
21 CFR 1301.43(c)(3). To date, Registrant has not filed any motion to
set aside the default with the Office of the Administrator. Id. Thus,
Registrant has made no representations as to his future compliance with
the CSA nor made any demonstration that he can be entrusted with
registration. Moreover, the evidence presented by the Government shows
that Registrant was convicted of charges related to defrauding health
care benefits programs, further indicating that Registrant cannot be
trusted with registration.
Accordingly, the Agency will order that Registrant's registration
be revoked.
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.
BF8869628, issued to Johann Farley, M.D. 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 Johann Farley, M.D., to renew
or modify this registration, as well as any other pending application
of Johann Farley, M.D., for additional registration in Indiana. This
Order is effective October 29, 2026.
Signing Authority
This document of the Drug Enforcement Administration was signed on
September 21, 2026, by DEA Administrator Terrance C. Cole. That
document with the original signature and date is maintained by DEA. For
administrative purposes only, and in compliance with requirements of
the
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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. 2026-19821 Filed 9-28-26; 8:45 am]
BILLING CODE 4410-09-P
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</html>Indexed from Federal Register on September 29, 2026.
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