A 9-20-02;12:18PM;Fior da “spt. Health 7850 922 5367 ca oo? : , Psy STATE OF FLORIDA 02 GT -3 PM 2:25 DEPARTMENT OF HEALTH DEPARTMENT OF HEALTH, through its BUREAU OF STATEWIDE PHARMACEUTICAL SERVICES, Petitioner, Case No: VS. CAPITAL HEALTH, INC., a Florida Corporation And BRUCE L. STORRS, individuaily, Respondents. ADMINISTRATIVE COMPLAINT Notice is hereby provided that Petitioner, Department of Health by and through its Bureau of Statewide Pharmaceutical Services (the “bureau”), intends to revoke the prescription drug wholesaler — broker only permit number 29:00021, that authorizes Capital Health, Inc., to operate as a prescription drug wholesaler ~ broker only in Florida. In support of the intended final agency action the bureau states: (1) Petitioner, Department of Health (hereinafter “the Department’), through the Bureau of Statewide Pharmaceutical Services (‘the Bureau”), 2818-A Mahan Drive, Tallahassee, Florida, 32308, is the state agency charged with implementing and enforcing the provisions of the Florida Drug and Cosmetic Act, Chapter 499, Florida Statutes (‘the Act”), including the regulation of the acquisition and distribution of prescription drugs in, into and from Florida as well as the permitting of entities to engage in this activity. The prescription drug wholesaler — broker only permit is established under the Act. (2) Capital Health, Inc., located at 515 Seabreeze Boulevard, Suite 200, Ft. Lauderdale, Broward County, Florida, 33316, is permitted under the Florida Drug and Cosmetic. Act, Chapter 499, F.S., (“the Act”) as a prescription drug wholesaler — broker only. Permit 9@-20-02;12:18PM;Florida Meet. Health +850 922 5367 # . al number 29:00021 represents the authority for Capital Health to engage in the wholesale distribution of prescription drugs in or from Florida until the permit expires on December 31, 200, unless sooner suspended or revoked. This biennial permit was originally issued on December 4, 1998, and has been renewed once. (8), Bruce L. Storrs is the president, sole corporate office, and person responsible for the prescription drug wholesale activities of Capital Health. (4) - On November 24, 1998, the bureau received an original application, marked as Exhibit.1) for Capital Health to be permitted as a prescription drug wholesaler — broker only. Bruce Storrs, as president of Capital Health, signed the affidavit on the application attesting that the information provided on the application was true and correct. (5) Section 499.01(2)(d), F.S., instructs the department to consider, at a minimum, several factors in reviewing the qualifications of person to be permitted under ss. 499.001- " 499.081. One of the factors includes any felony conviction of the applicant. ©) Question 27 on the application form for a prescription drug wholesaler — broker only permit asks a series a questions, two of which relate to felony convictions of the applicant and its owners and officers. Capital Health’s response to question 27-3, whether the applicant, owner or any officer has been convicted of any felony under a federal, state (including Florida), or focal law was negative. (7) However, Bruce L. Storrs was convicted of a felony in the United States District Court, Southern District of California on or about August 10, 1992 for violation of 21 USC 841(g)(1) and 805(35)(E) and Title 18 USC 2 related to knowingly distributing a listed chemical, hydriodic acid, and aiding and abetting. (8) Section 499.067(3)(a), F.S., authorizes the department to revoke or suspend a permit if it was obtained by misrepresentation or fraud or through a mistake of the department. Further, s. 499.067(5), F.S., authorizes the department to “deny, suspend, or revoke a permit issued under the Act which authorizes the permittee to purchase prescription drugs, if any 4/ 23 a # Bf 23 ;B5O0 92? 5367 9@-20-02;12:18PM;Florida Nept. Health 7 owner, officer, employee, or other person who participates in administering or operating the establishment has been found guilty of any violation of ss. 499.001 -499.081 .. any rules adopted under any of those sections or chapters, or any federal or state drug law, regardless of whether the person has been pardoned, had her civil rights restored, or had adjudication withheld.” (9) Capital Health’s application for a prescription drug wholesaler — broker only permit did not disclose Bruce Storr’s felony conviction. As a result, Bruce Storrs misrepresented himself on the application to the department. The listed chemical, hydriodic acid, is a substance used as a solvent, reagent, or catalyst in manufacturing a controlled substance. Because of Capital Health's failure to disclose it’s sole corporate officer's prior felony conviction related to unlawtully distributing hydtiodic acid, the department did not have an opportunity to adequately assess the qualifications of Capital Health to be permitted to operate as a prescription drug wholesaler — broker only in Florida. As a result of this misleading omission, it is In the best interest of the public health, safety and welfare for the department to revoke the prescription ‘drug wholesaler — broker only permit 29:00021 of Capital Health, Inc. (10) You have the right to request an administrative hearing pursuant to sections 120.569 and 120.57, F.S., if you wish to challenge the imposition of the administrative fine and the intended agency action to revoke permit 22:01231. Such proceedings are governed by sections 120.569 and 120.57, F.S., and Rules 28-106 and 28-107, Florida Administrative Code. Request for a hearing, formal or informal, must comply with Rule 28-107.004, Florida Administrative Code. (a) A petition for administrative hearing must be in writing and must be received by the Agency Clerk for the Department, within twenty-one (21) days from the receipt of this complaint. The address of the Agency Clerk is 4052 Bald Cypress Way, BIN # A02, Tallahassee FL 32399-1703. The Agency Clerk’s facsimile number is 850-410-1448. (b) Mediation is not available as arvaiternative remedy. Ca 9-20-02; 12::8PMiFlorida “set. Health 3250 922 5367 # vo" (c) Your failure to submit a petition for hearing within 21 days from receipt of this complaint will constitute a waiver of your right to an administrative hearing, under Florida Administrative Code Rule 28-106.111 and this complaint shall become a "final order". (d) Should this complaint become a final order, a party who is adversely affected by it is entitied to judicial review pursuant to section 120.68, Fla. Stat. Review proceedings are governed by the Florida Rules of Appellate Procedure. Such proceedings may be commenced by filing one, copy of a Notice of Appeal with the Agency Clerk of the Department of Health and a second copy, accompanied by the filing fees required by law, with the Court of Appeal in the appropriate District Court. The notice must be filed within 30 days of rendition of the final order. (11) The undersigned certifies that a true copy of this administrative complaint was , sent by U.S. Certified Mail, Return Receipt Requested, to Bruce L. Storrs, President, Capital Health, Inc., LLC, 4007 North Federal Highway, Suite 288, Fort Lauderdale, Florida 33304, which is the mailing address on file with the bureau for Capital Health, Inc., this 26 ¢ day of August, 2002. .y CLPh. Chief of Phafmaceutical Services 2818-A Mahan Drive . Tallahassee, Florida 32308 Telephone: (850) 922-5190 Copy also furnished to: Counsel for the Department: Robert P. Daniti, Senior Attorney 4052 Bald Cypress Way, Bin A02 Tallahassee, Florida 32399-1703 Telephone (850) 245-4005 Facsimile (850) 413 8743 Florida Bar No. 191599 eA 9-20-02; '2:18PM;Florida Dept. Health 3850 922 5367 a 2 —! — SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY ‘A. Received by (Please Print Clearly) , Ole Ct am Complete items 1, 2, and 3. Also complete Item 4 if Restricted, Delivery is desired. @ Print yoy name, and address on the reverse so thatfve can return the card to you. m Attactfthis card to. the back of the mailpiece, or onthe front if space permits. 1, Article Addressed to: A Ic (Bruce L. Storrs, President aouy 9028 e ‘3 | Capital Health, Inc., LLC ail 1007 North Federal Highway, Suite = Sonica Type = o | 288 . Certified Mal +) Express Mail C1 Registered 1B Return Receipt for Merchandise Cl insured Mail, 1 6.0... 4, Restricted Delivery? (Extra Fae) OD Yes | Fort Lauderdale, Florida 33304 7000 ob 2, Article Number (Copy from service label) —_ 102695-00-M-0962

Docket for Case No: 02-003883