Logan Veterinarian Pays $200,000 To Settle Allegations Under The Controlled Substance Act

SALT LAKE CITY – Dr. Michael J. Larson, a veterinarian who owns and operates IBEX Pre-Clinical Research, Inc., in Logan, has agreed to pay the United States $200,000 in civil penalties to resolve allegations involving the handling of controlled substances at the Logan business.  The company is involved in conducting orthopedic surgical studies on a variety of laboratory animal species for pharmaceutical and medical device companies.

The DEA received a hotline tip in February 2016 alleging that control substances were being diverted for Dr. Larson’s personal use at IBEX.  The tipster also told DEA numerous violations of the Comprehensive Drug Abuse Prevention and Control Act were taking place at the company.

The DEA conducted an investigation and audit which confirmed Dr. Larson was in violation of numerous record-keeping regulations. The violations included failing to conduct inventories of controlled substances on a regular basis and failing to maintain accurate and complete records of controlled substances received and dispensed.  For example, the investigation showed that on 52 different occasions, Dr. Larson did not maintain accurate and complete records of the drug Buprenorphine that was purchased and administered.  The investigation also showed that Dr. Larson failed to restrict access to the electronic Controlled Substance Ordering system.  Dr. Larson purchased controlled substances for personal use.

Each of the violations could have resulted in a $10,000 civil penalty.  As a part of the settlement to resolve the allegations, Dr. Larson agreed to surrender his DEA Registration and to associate with another veterinarian in the area to order, maintain and administer controlled substances.