DEA failed to punish drug distributor blamed in opioid crisis

SHREVEPORT, La. — The U.S. Drug Enforcement Administration has allowed one of the nation’s largest wholesale drug distributors to keep shipping highly addictive painkillers for nearly four years after a judge recommended it be stripped of its license for its “cavalier disregard” of thousands of suspicious orders fueling the opioid crisis.

The DEA did not respond to repeated questions from The Associated Press about its handling of the case against Morris & Dickson Co. or the involvement of a high-profile consultant the company had hired to stave off punishment and who is now DEA Administrator Anne Milgram’s top deputy.

But the delay has raised concerns about how the revolving door between government and industry may be affecting the DEA’s mission to police drug companies blamed for tens of thousands of American overdose deaths.

“If the DEA had issued its order in a timely manner, one could then credibly believe that its second-incommand was not involved despite an obvious conflict of interest,” said Craig Holman, an ethics expert at the watchdog group Public Citizen in Washington. “The mere fact that its action has been delayed four years just raises red flags. It casts the entire process under grave suspicion.”

Last week, after the AP reached out to the DEA for comment, the agency broke its silence on the issue and abruptly notified Morris & Dickson that it has decided to revoke its registration to distribute controlled substances, according to two people familiar with the development who spoke on the condition of anonymity to discuss the exchange. However, no final order has yet been published. The company has described revocation as a “virtual death sentence” and is almost certain to challenge the decision in federal court.

Louis Milione, who was named DEA’s principal deputy administrator in 2021, did not respond to requests for comment. He retired from the DEA in 2017 after a storied 21-year career that included two years leading the division that controls the sale of highly addictive narcotics. Like dozens of colleagues in the DEA’s powerful-but-little-known Office of Diversion Control, he quickly went to work as a consultant for some of the same companies he had been tasked with regulating, including Morris & Dickson.

Milione was brought in by Morris & Dickson as part of a $3 million contract to save its registration to supply painkillers after the DEA accused the company in 2018 of failing to flag thousands of suspicious, high-volume orders.

Testifying in 2019 before federal Administrative Law Judge Charles W. Dorman, Milione argued that Morris & Dickson “spared no expense” to overhaul its compliance systems, cancel suspicious orders and send daily emails to the DEA spelling out its actions.

But those efforts were too little, too late, the judge wrote in a 159-page recommendation which has not been previously reported and was recently obtained by the AP. Anything less than the most severe punishment, he said, “would communicate to DEA registrants that despite their transgressions, no matter how egregious, they will get a mere slap on the wrist and a second chance so long as they acknowledge their sins and vow to sin no more.”

“Acceptance of responsibility and evidence of remediation are not get-outof-jail-free cards that erase the harm caused by years of cavalier disregard,” Dorman wrote. “Allowing the respondent to keep its registration would tell distributors that it is acceptable to take a relaxed approach to DEA regulations until they are caught, at which point they only need to throw millions of dollars at the problem to make the DEA go away.”