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XAVIER BECERRA
Attorney General of California ARMANDO ZAMBRANO
N Supervising Deputy Attorney General
3 NANCY A. KAISER
4 Deputy Attorney General State Bar No. 192083 5 300 So. Spring Street, Suite 1702
Los Angeles, CA 90013Telephone: (213) 897-
6 Facsimile: (213) 897-
7 Attorneys for Complainant BEFORE THE
8 BOARD OF PHARMACY
DEPARTMENT OF CONSUMER AFFAIRS STATE OF CALIFORNIA
10 In the Matter of the Accusation Against:
(^11) BRIGHTON WAY PHARMACY INC. AND LUCENA HOLDINGS LLC DBA WEST WILSHIRE PHARMACY, 13 SHAHROKH MAKHANI, PRES.,PIC SHAHROKH MAKHANI (6/8/92 to 12/8/14),
14 PIC AISAN KHALILIAN
F.K.A. AISAN ZARGARIAN (12/2/14 to 1/29/16)
6333 Wilshire Blvd.
16 Los Angeles, CA 90048Pharmacy Permit License No. PHY 37949,
17 SHAHROKH MAKHANI
18 526 N. Foothill Rd.
19 Beverly Hills, CA 90210
Pharmacist License No. RPH 35054,
20 and 21 22 AISAN KHALILIAN FKA AISAN ZARGARIAN 23 PO Box 25285 Los Angeles, CA 90025
24 Pharmacist License No. RPH 70509
Case No. 5837
ACCUSATION
25 26 27 28
Respondents.
Complainant alleges:
N PARTIES
w 1.^ Virginia Herold (Complainant) brings this Accusation solely in her official capacity
as the Executive Officer of the Board of Pharmacy, Department of Consumer Affairs.
- On or about June 8, 1992, the Board of Pharmacy issued Pharmacy Permit Number
PHY 37949 to Brighton Way Pharmacy Inc. and Lucena Holdings LLC dba West Wilshire
Pharmacy (Respondent Pharmacy). The Board's records reflect that West Wilshire Pharmacy is under corporate ownership with the majority (90%) held by Brighton Way Pharmacy, Inc. and the
minority (10%) by Lucena Holdings LLC. Brighton Way Pharmacy, Inc. is a California
10 corporation and Lucena Holdings LLC is a Delaware limited liability company. The Board's
11 records reflect that Shahrokh Makhani was the President of Brighton Way Pharmacy, Inc. from 12 June 8, 1992 to January 29, 2016.' Shahrokh Makhani, RPH 35054, was the Pharmacist-in- (^13) Charge from June 8, 1992 to December 8, 2014. Aisan Khalilian fka Aisan Zargarian, RPH (^14) 70509, was the Pharmacist-in-Charge from December 2, 2014 to January 29, 2016. The (^15) Pharmacy Permit expired on January 29, 2016, and was cancelled on April 7, 2016. 16 3. (^) On or about December 11, 1979, the Board of Pharmacy issued Original Pharmacist 17 License Number RPH 35054 to Shahrokh Makhani (Respondent Makhani). The Pharmacist (^18) License was in full force and effect at all times relevant to the charges brought herein and will (^19) expire on September 30, 2018, unless renewed. 20 4. (^) On or about March 14, 2014, the Board of Pharmacy issued Original Pharmacist
(^21) License Number RPH 70509 to Aisan Khalilian fka Aisan Zargarian (Respondent Zargarian). (^22) The Pharmacist License was in full force and effect at all times relevant to the charges brought 23 herein and will expire on May 31, 2019, unless renewed. 24 111 25
26 On January 6, 2015, Brighton Way Pharmacy, Inc. filed an Amended Statement of
27 Information, which listed Sherri D. Leon as the Chief Executive Officer, Secretary and FinancialOfficer and listed Sherri D. Leon, Gregory Blaszczynski, and James Fleming as the only directors. 28 Shahrokh Makhani was not listed as an officer or as a director of Brighton Way Pharmacy, Inc. 2 (WEST WILSHIRE PHARMACY, ET AL.) ACCUSATION |
corruption, whether the act is committed in the course of relations as a licensee or otherwise, and N whether the act is a felony or misdemeanor or not. (g) Knowingly making or signing any certificate or other document that falsely represents (^4) the existence or nonexistence of a state of facts.
(j) The violation of any of the statutes of this state, of any other state, or of the United States regulating controlled substances and dangerous drugs.
9 (o) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the
10 violation of or conspiring to violate any provision or term of this chapter or of the applicable
11 federal and state laws and regulations governing pharmacy, including regulations established by 12 the board or by any other state or federal regulatory agency."
13 11. Section 4307 of the Code states, in pertinent part:
(^14) "(a) Any person who has been denied a license or whose license has been revoked or is (^15) under suspension, or who has failed to renew his or her license while it was under suspension, or (^16) who has been a manager, administrator, owner, member, officer, director, associate, partner, or (^17) any other person with management or control of any partnership, corporation, trust, firm, or (^18) association whose application for a license has been denied or revoked, is under suspension or has (^19) been placed on probation, and while acting as the manager, administrator, owner, member, (^20) officer, director, associate, partner, or any other person with management or control had
21 knowledge of or knowingly participated in any conduct for which the license was denied,
22 revoked, suspended, or placed on probation, shall be prohibited from serving as a manager, (^23) administrator, owner, member, officer, director, associate, partner, or in any other position with (^24) management or control of a licensee as follows: (^25) (1) Where a probationary license is issued or where an existing license is placed on (^26) probation, this prohibition shall remain in effect for a period not to exceed five years. (^27) (2) Where the license is denied or revoked, the prohibition shall continue until the license
28 is issued or reinstated."
12. Section 4201 of the Code states:
N "(a) Each application to conduct a pharmacy, wholesaler, third-party logistics provider,
w veterinary food-animal drug retailer, or outsourcing facility shall be made on a form furnished by
the board and shall state the name, address, usual occupation, and professional qualifications, if u any, of the applicant. If the applicant is other than a natural person, the application shall state the information as to each person beneficially interested therein or any person with management or
control over the license.
"(b) As used in this section, and subject to subdivision (c), the term "person beneficially (^9) interested" means and includes: (^10) (1) If the applicant is a partnership or other unincorporated association, each partner or
11 member.
12 (2) If the applicant is a corporation, each of its officers, directors, and stockholders,
(^13) provided that a natural person shall not be deemed to be beneficially interested in a nonprofit
14 corporation.
15 (3) If the applicant is a limited liability company, each officer, manager, or member.
16 (c) If the applicant is a partnership or other unincorporated association, a limited liability
(^17) company, or a corporation, and the number of partners, members, or stockholders, as the case may (^18) be, exceeds five, the application shall so state, and shall further state the information required by (^19) subdivision (a) as to each of the five partners, members, or stockholders who own the five largest
(^20) interests in the applicant entity. Upon request by the executive officer, the applicant shall furnish
(^21) the board with the information required by subdivision (a) as to partners, members, or (^22) stockholders not named in the application, or shall refer the board to an appropriate source of that
23 information.
(^24) (d) The application shall contain a statement to the effect that the applicant has not been (^25) convicted of a felony and has not violated any of the provisions of this chapter. If the applicant (^26) cannot make this statement, the application shall contain a statement of the violation, if any, or
27 reasons which will prevent the applicant from being able to comply with the requirements with
28 respect to the statement.
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"(b) A person may not act as a nonresident pharmacy unless he or she has obtained a N license from the board. The board may register a nonresident pharmacy that is organized as a
W limited liability company in the state in which it is licensed."
15. California Code of Regulations, title 16, section 1709 states:
U "(a) Each permit to operate a pharmacy shall show the name and address of the pharmacy, the form of ownership (individual, partnership or corporation) and the pharmacist-in-charge. Each.
pharmacy shall, in its initial application on the annual renewal form, report the name of the
pharmacist-in-charge, the names of all owners and the names of the corporate officers (if a (^9) corporation). Any changes in the pharmacist-in-charge, or the owners, or corporate officers shall 10 be reported to the Board within 30 days. 11 "(b) Any transfer, in a single transaction or in a series of transactions, of 10 percent or more 12 of the beneficial interest in a business entity licensed by the board to a person or entity who did 13 not hold a beneficial interest at the time the original permit was issued, shall require written
14 notification to the board within 30 days.
15 "(c) The following shall constitute a transfer of permit and require application for a change
16 of ownership: any transfer of a beneficial interest in a business entity licensed by the board, in a (^17) single transaction or in a series of transactions, to any person or entity, which transfer results in
18 the transferee's holding 50% or more of the beneficial interest in that license."
(^19) FACTUAL SUMMARY
20 16. On or about August 16, 2013, the Board received an application for a Nonresident
21 Pharmacy Permit from Philidor Rx Services, LLC., Matthew S. Davenport, CEO (Philidor Rx
(^22) Services). Philidor Rx Services, LLC's address is 330 South Warminster Rd., Suite 350, Hatboro,
23 PA 19040. The application provides that Philidor Rx Services was issued pharmacy permit
(^24) number PP482370 on June 25, 2013, by the state of Pennsylvania. The Board denied Philidor Rx (^25) Services' application on or about May 14, 2014.
26 17. From as early as October 20, 2014, to date, Respondent Pharmacy allowed Philidor
27 Rx Services, a non-California licensed pharmacy, located in the state of Pennsylvania, to operate (^28) West Wilshire Pharmacy as part of its corporation, store and dispense dangerous drugs purchased 7
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10
15
25
by Philidor Rx Services, and share prescription information with Philidor Rx Services through a
N common electronic file pharmacy computer system, despite the fact the Board had denied Philidor w Rx Services' Non-Resident Pharmacy Application on May 14, 2014.
4 18. On or about February 20, 2015, Respondents Pharmacy and Makhani filed a
Community Pharmacy Permit Application with the Board to transfer the ownership of the (^6) pharmacy permit issued to Respondent Pharmacy to Lucena Holdings LLC, and failed to disclose
7 that Philidor Rx Services was the parent corporation of Lucena Holdings LLC. Respondent
(^8) Pharmacy and Makhani falsely marked "No" in response to the question of "Is the parent
9 corporation or limited liability company a subsidiary?" In fact, Lucena Holdings LLC was a
subsidiary of Philidor Rx Services.
11 FIRST CAUSE FOR DISCIPLINE
12 (Obtaining License by Fraud or Misrepresentation)
13 19. Respondent Pharmacy is subject to disciplinary action under section 4301,
14 subdivisions (a), (g) and (0), in that Respondent Pharmacy obtained its license by fraud or
misrepresentation. Complainant refers to, and by this reference incorporates, the allegations set 16 forth above in paragraphs 16 through 18, as though set forth fully.
17 SECOND CAUSE FOR DISCIPLINE
18 (Providing False Information on Licensure Application)
19 20. Respondent Pharmacy is subject to disciplinary action under section 4301,
subdivisions (f), (g) and (o), of the Code, for violating section 4201 of the Code and California
(^21) Code of Regulations, title 16, section 1709, in that Respondent Pharmacy provided false
22 information on its licensure application. Complainant refers to, and by this reference
(^23) incorporates, the allegations set forth above in paragraphs 16 through 19, as though set forth fully. (^24) THIRD CAUSE FOR DISCIPLINE
(Unlicensed Non-Resident Pharmacy)
26 21. Respondents Pharmacy, Makhani and Zargarian are subject to disciplinary action
27 under section 4301, subdivision (o), of the Code, in that Respondent Pharmacy operated as an (^28) unlicensed Non-Resident Pharmacy. The circumstances are as follows: 8
5
10
15
25
a. On or about May 14, 2015, a Board inspection of Respondent Pharmacy's facility,
located at 6333 West Wilshire Blvd., Los Angeles, CA 90048, revealed that the pharmacy used (^3) the pharmacy computer prescription processing software Carepoint to generate prescription labels (^4) for the pharmacy's prescriptions, which were processed by Philidor Rx Services, a non-California licensed pharmacy, located in the state of Pennsylvania. The prescription labels generated from (^6) the Carepoint computer system did not include the physical description of the medication being (^7) dispensed, as required.
OTHER MATTERS
24. Pursuant to section 4307 of the Code, if discipline is imposed on Pharmacy Permit
Number PHY 37949 issued to Brighton Way Pharmacy Inc. and Lucena Holdings LLC dba West 11 Wilshire Pharmacy, Brighton Way Pharmacy Inc. shall be prohibited from serving as a manager, (^12) administrator, owner, member, officer, director, associate, or partner of a licensee for five years if 13 Pharmacy Permit Number PHY 37949 is placed on probation or until Pharmacy Permit Number
14 PHY 49140 is reinstated if it is revoked.
25.. Pursuant to section 4307 of the Code, if discipline is imposed on Pharmacy Permit (^16) Number PHY-37949 issued to Brighton Way Pharmacy Inc. and Lucena Holdings LLC dba West (^17) Wilshire Pharmacy, Lucena Holdings LLC shall be prohibited from serving as a manager, 18 administrator, owner, member, officer, director, associate, or partner of a licensee for five years if (^19) Pharmacy Permit Number PHY 37949 is placed on probation or until Pharmacy Permit Number
PHY 49140 is reinstated if it is revoked.
21 26. Pursuant to section 4307 of the Code, if discipline is imposed on Pharmacy Permit
(^22) Number PHY 37949 issued to Brighton Way Pharmacy Inc. and Lucena Holdings LLC dba West 23 Wilshire Pharmacy while Shahrokh Makhani was an officer and/or owner and had knowledge of
24 or knowingly participated in any conduct for which the licensee was disciplined, Shahrokh
Makhani shall be prohibited from serving as a manager, administrator, owner, member, officer, 26 director, associate, or partner of a licensee for five years if Pharmacy Permit Number PHY 37949 (^27) is placed on probation or until Pharmacy Permit Number PHY 37949 is reinstated if it is revoked. 28 10 (WEST WILSHIRE PHARMACY, ET AL.) ACCUSATION |
PRAYER
N WHEREFORE, Complainant requests that a hearing be held on the matters herein alleged, W and that following the hearing, the Board of Pharmacy issue a decision:
A 1. Revoking or suspending Pharmacy Permit Number PHY 37949, issued to Brighton
U Way Pharmacy Inc. and Lucena Holdings LLC dba West Wilshire Pharmacy;
2. Revoking or suspending Original Pharmacist License Number RPH 35054 issued to
Shahrokh Makhani;
8 3. Revoking or suspending Original Pharmacist License Number RPH 70509 issued to
Aisan Khalilian fka Aisan Zargarian;
10 4.^ Prohibiting Brighton Way Pharmacy Inc. from serving as a manager, administrator, (^11) owner, member, officer, director, associate, or partner of a licensee for five years if Pharmacy
12 Permit Number PHY 37949 is placed on probation or until Pharmacy Permit Number PHY xxxis
13 reinstated if Pharmacy Permit Number 37949 issued to Brighton Way Pharmacy Inc. and Lucena
14 Holdings LLC dba West Wilshire Pharmacy is revoked;
15 5.^ Prohibiting Lucena Holdings LLC from serving as a manager, administrator, owner,
16 member, officer, director, associate, or partner of a licensee for five years if Pharmacy Permit
17 Number PHY 37949 is placed on probation or until Pharmacy Permit Number PHY 37949 is
18 reinstated if Pharmacy Permit Number 37949 issued to Brighton Way Pharmacy Inc. and Lucena
19 Holdings LLC dba West Wilshire Pharmacy is revoked;
20 6. Prohibiting Shahrokh Makhani from serving as a manager, administrator, owner,
(^21) member, officer, director, associate, or partner of a licensee for five years if Pharmacy Permit
22 Number PHY 37949 is placed on probation or until Pharmacy Permit Number PHY 37949 is
(^23) reinstated if Pharmacy Permit Number PHY 37949 issued to Brighton Way Pharmacy Inc. and
24 Lucena Holdings LLC dba West Wilshire Pharmacy is revoked;
25 7.^ Ordering Brighton Way Pharmacy Inc. and Lucena Holdings LLC dba West Wilshire 26 Pharmacy, Shahrokh Makhani, and Aisan Khalilian f.k.a. Aisan Zargarian to pay the Board of 27 Pharmacy the reasonable costs of the investigation and enforcement of this case, pursuant to 28 Business and Professions Code section 125.3; 11
