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Your exposure may be greater than you think. Beside
the potential federal and state fines, there are a slew of
other expenses you are likely to encounter, including:
1. Attorney fees. When the DEA comes knocking, one
of the first calls you make is to an attorney. According
to LegalMatch.com, attorney fees for criminal defense
range from $150-$700/hour. Legal fees add up, and
with an hourly fee structure, it is not uncommon for
legal bills to get into the $10,000 to $15,000 range
quickly. A lawyer who works on an hourly rate may also
require the payment of a retainer fee.
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2. Remediation costs: Typically, a third-party expert who
specializes in DEA compliance is needed to remediate
and work with the DEA to reduce potential fines. This
can easily add up to tens of thousands of dollars.
3. Employee turnover: According to calculations by
PeopleKeep.com, every time a business replaces a
salaried employee, it costs six to nine months' salary on
average. For a manager making $40,000 a year, that's
$20,000 to $30,000 in recruiting and training expenses.
Others predict the cost is even more— estimating that
losing a salaried employee can cost as much as twice
their annual salary, especially for a high-earner or
executive-level employee.
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4. Crisis management: News travels quickly. When your
reputation is on the line, you need a PR firm to help
keep you out of the headlines. Prices vary depending on
where you are located, but can range from $2,000 to
$10,000 (and beyond) per month.
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5. Loss of patients: Even the best crisis management
efforts rarely succeed in keeping felony allegations
under wrap. When word gets out that you are the
subject of a DEA investigation, loss of patients is an
unavoidable consequence.
6. Compliance oversight: As part of sanctions, you
may be required to undergo a compliance oversight
monitoring program. Several clients we have worked
with were ordered to undergo oversight programs for
three years. The longer the program the higher the cost.
References:
1. https://www.washingtonpost.com/graphics/2019/investigations/dea-pain-pill-database/
2. https://www.aaha.org/publications/newstat/articles/2019-04/ex-dea-agent-veterinary-hospitals-are-low-hanging-fruit/
3. https://www.justice.gov/usao-co/pr/veterinarian-pays-226000-and-surrenders-license-resolve-allegations-he-failed-properly
4. https://www.justice.gov/usao-ndga/pr/veterinary-clinic-owner-pays-civil-penalty-settle-alleged-controlled-substances-act
5. https://www.legalmatch.com/law-library/article/how-much-will-a-criminal-defense-lawyer-cost.html
6. https://www.peoplekeep.com/blog/bid/312123/employee-retention-the-real-cost-of-losing-an-employee
7. https://ecocult.com/much-pr-cost-get-money/
7. Rehabilitation program: If you are found guilty for
failure to prevent drug diversion and the diverting
activity was committed by an employee, you will be
financially responsible, to some degree, for associated
costs for that employee's rehabilitation program for
diverting employees. We have worked with clients who
had to pay as much as $20,000 per month towards a
diverting employee's rehabilitation program.
8. State Pharmacy Board investigation: Veterinarians
are subject to oversight by state veterinary medical
boards as well as state boards of pharmacy, which
have the authority to assess additional fines.
9. Loss of DEA license: Once you lose your DEA license,
getting it back is not easy. If you're lucky enough to get
your DEA license back, you're still looking at around an
18-24 month process. Associated costs to regain your
license add up. In cases where you are unable to regain
your DEA license, you will incur the cost of sourcing and
employing a new DEA registrant.
10. Lost inventory: If you are charged with failure to
prevent drug diversion and the diversion was as a
result of employee theft, you also incur the cost of the
controlled substances diverted from your facility. And,
you run the risk of being "cut off" from your controlled
substance supplier.
Over the last three years, TITAN Group has helped over
162 facilities from New York to Hawaii. During this time, the
minimum number of violations found during an inspection
has never been less than six per facility. At $15,040 per
violation, TITAN has potentially saved each of its clients
$90K in fines—not to mention the potential revenue
losses these facilities faced from a longterm DEA imposed
shutdown.
When you add everything up, even on the low end, the cost
of noncompliance can easily exceed $100,000. Choosing to
proactively invest in DEA compliance will pay you dividends
down the road—not to mention the peace of mind you will
have each day, knowing you are protected.
