Doctor's Data Settles Charges By New York State (1986)
Stephen Barrett, M.D.
In 1985, New York Attorney Robert Abrams sought a court order to stop Doctor's Data, Inc. (DDI) from soliciting or accepting specimens without a valid permit from the New York State Department of Health (DOH). The case arose in connection with an unlicensed "nutritionist" who was using DDI's hair analysis tests as a basis for prescribing dietary supplment and herbal products. Documents in the case indicate that DDI held a permit to operate within New York for a brief period in 1982, but the permit was revoked when the authorities discovered that the laboratory director (Oscar G. Rasmussen, PhD) did not have a requisite degree in chemical, physical, or biological sciences. In addition, the New York Department of Laboratories regarded hair analysis for the purpose of determining body nutrient levels as an inaccurate test and would never have licensed a laboratory to permit such tests to be done. The case was settled in 1986 with a consent judgment (shown below) under which DDI agreed to pay $25,000 and stop accepting speciments from New York State unless and until it received a permit from the State Department of Health. DDI finally became licensed in 1997, but the license only permits it to do tests that are FDA-approved or have special from the state health department.
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
PEOPLE OF THE STATE OF NEW YORK, by
DOCTOR'S DATA LABORATORIES, INC.,
Pursuant to Section 63, Subdivision 12
Filed Oct 16, 1986
Upon the reading and filing of the Notice of J Petition, Verified Petition, with Exhibits, dated July 22, 1985; and upon Respondent's Verified Answer and Verified Counterclaims, and accompanying affidavit in support thereof, and the annexed consent and stipulation of the
parties dated August 15, 1986;
NOW, on motion of Robert Abrams, Attorney General of the State of New York. (Peter Bienstock, Stephen Minde1l and Sara E. Nathan, of Counsel) attorney for petitioners, it is hereby
ORDERED, ADJUDGED and DECREED that:
Respondent, its assigns, agents, employees, officers and any other individual or entity through whom it may act, shall cease and desist from soliciting or accepting human hair specimens in and from the State of New York for laboratory examinations unless and until a valid permit is issued to it by the New York State Department of Health pursuant to Public Health Law §574.
Respondent, its assigns, agents, employees, officers and any other individual or entity through whom it may act, shall cease and desist from accepting specimens in and from the State of New York from any person other than a licensed physician or other person authorized by law to use the findings of a laboratory.
Respondent, its assigns, agents, employees, officers and any other individual or entity through whom it may act, shall cease and desist from failing to bill the recipient of its services directly in violation of General Business Law §394-e.
Respondent shall pay to the Attorney General Twenty-Five Thousand and 00/100 Dollars ($25,000) in costs and penalties, of which five thousand dollars shall be paid upon the entry of this order. The remainder shall be paid in four payments of five thousand dollars each, due on July 1 of each succeeding year.
Upon compliance with all of the terms of this order, and no later that 60 days from the date of entry of this order, respondent shall submit an affidavit to the Attorney General's office setting forth in detail what steps it has taken to comply with this order.
Either party to this proceeding may apply to the court at any time on five days written notice for such order as may be necessary to enforce or construe the terms of this consent judgment.
E N T E R
J. S. C.
This page was posted on April 19, 2010.