ALJDEC - Licensing
25A-47404-MDX · Arizona Medical Board · 2025-02-03
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of:
DAVID H. PAYNE, M.D.
Holder of License No. 47404
For the Practice of Allopathic Medicine
In the State of Arizona.
No. 25A-47404-MDX
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: January 3, 2025; the record closed on January 27, 2025
APPEARANCES: David H. Payne, M.D. appeared on his own behalf. Assistant Attorney General Elizabeth Campbell represented the Arizona Medical Board. Nicole Samaradellis appeared as a witness for the Arizona Medical Board.
ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella
EXHIBITS ADMITTED INTO EVIDENCE: The Arizona Medical Board’s Exhibits 1-5
FINDINGS OF FACT
The Arizona Medical Board (“Board”) is the authority for the regulation and control of the practice of allopathic medicine in the State of Arizona.
Respondent David H. Payne, M.D. is the holder of License Number 47404 for the practice of allopathic medicine in Arizona.
On November 15, 2024, the Board issued a Complaint and Notice of Hearing to Dr. Payne alleging Dr. Payne had engaged in unprofessional conduct pursuant to A.R.S. § 32-1401(27)(a) “[v]iolating any federal or state laws, rules or regulations applicable to the practice of medicine”) and A.R.S. § 32-1401(27)(d) (“[c]ommitting a felony, whether or not involving moral turpitude, or a misdemeanor involving moral turpitude. In either case, conviction by any court of competent jurisdiction or a plea of no contest is conclusive evidence of the commission”). Specifically, with regard to A.R.S. § 32-1401(27)(a), the Board alleged that Dr. Payne’s conduct violated A.R.S. § 32-3208(A) “[a] health professional who has been charged with a misdemeanor involving conduct that may affect patient safety or a felony after receiving or renewing a license or certificate must notify the health professional's regulatory board in writing within ten working days after the charge is filed”), as well as 18 U.S.C. §§ 371, 1343, 1346 and 1952.
Nicole Samaradellis, Manager of Investigations for the Board, provided foundation for the admission of the Board’s exhibits.
On June 29, 2018, Dr. Payne submitted a renewal application to the Board within which he disclosed that he had been indicted on several federal charges.
On September 12, 2018, the Board notified Respondent that it had opened an investigation.
On September 18, 2018, Dr. Payne filed a response to the Board.
The Board’s investigation revealed that on June 6, 2017, Dr. Payne was indicted on charges of 18 U.S.C. § 371 (Conspiracy), 18 U.S.C. §§ 1343, 1346 (Wire Fraud), 18 U.S.C. § 1952(a)(3) (Use of an Interstate Facility in Aid of Racketeering Enterprise), and 18 U.S.C. § 2 (Aiding and Abetting) in the U.S. District Court, Central District of California, case SA CR No. 17-53.
On April 25, 2018, a First Superseding Indictment was issued in the U.S. District Court, Central District of California, case SA CR No. 17-53(A), indicting Dr. Payne on charges of 18 U.S.C. § 371 (Conspiracy), 18 U.S.C. §§ 1343, 1346 (Wire Fraud), 18 U.S.C. § 1952(a)(3) (Use of an Interstate Facility in Aid of Unlawful Activity), 18 U.S.C. § 2 (Aiding and Abetting), 18 U.S.C. §§ 982(a)(7), 981(a)(1)(C) and 28 U.S.C. § 2461(c) (Criminal Forfeiture) in the U.S. District Court, Central District of California.
Regardless of which indictment date is used, Dr. Payne failed to report his criminal charges to the Board within ten (10) days as required.
On July 18, 2023, judgment was entered against Dr. Payne on Count 1 - U.S.C. § 371 (Conspiracy), Count 2 and 3 - 18 U.S.C. § 1343, 1346 (Wire Fraud), and Count 4 - 18 U.S.C. § 1952(a) (Use of an Interstate Facility; Aiding and Abetting). Dr. Payne was sentenced to 33 months of imprisonment, three (3) years of probation, and fined $20,000.00.
Dr. Payne’s license is currently suspended because it expired on November 8, 2024.
Dr. Payne argued that he did not receive proper notice of the hearing because he is in federal prison and has been moved to various locations while incarcerated. However, the Board mailed the Complaint and Notice of Hearing to Dr. Payne’s address of record with the Board via U.S. mail and Certified mail as is required of the Board, and emailed the Complaint and Notice of Hearing to Dr. Payne’s email address of record. At the time of hearing, Dr. Payne was in possession of the Complaint and Notice of Hearing, as his wife had mailed him a copy of it, and he participated in the hearing.
Dr. Payne argued that he has appealed his conviction, and therefore, the case is “ongoing” and “not resolved.”
Dr. Payne asserted that he was indicted in April 2018, and that he hired attorneys to represent him and notify the Board of the indictment. Dr. Payne blamed his attorneys for failing to timely notify the Board.
Dr. Payne testified that “he thought everything was okay” and that he “made a good faith effort to report.” Dr. Payne testified that he “intended” to inform the Board after his appeal.
CONCLUSIONS OF LAW
The Board has jurisdiction over Dr. Payne and the subject matter in this case.
Pursuant to A.R.S. § 41-1092.07(G)(2) and A.A.C. R2-19-119(B), the Board has the burden of proof in this matter. The standard of proof is by clear and convincing evidence.
The legislature created the Board to protect the public. See Laws 1992, Ch. 316, § 10.
Pursuant to A.R.S. § 32-1435(A), “[e]ach active licensee shall promptly and in writing inform the board of the licensee's current residence address, office address and telephone number and of each change in residence address, office address or telephone number that may later occur.” Dr. Payne did not inform the Board of a change in address and the Board properly sent the Complaint and Notice of Hearing to Dr. Payne’s address of record with the Board, and Dr. Payne, did in fact, receive the Complaint and Notice of Hearing.
Pursuant to A.R.S. 32-1401(27)(a) “unprofessional conduct” includes “[v]iolating any federal or state laws, rules or regulations applicable to the practice of medicine.” A.R.S. § 32-3208(A) requires that “[a] health professional who has been charged with a misdemeanor involving conduct that may affect patient safety or a felony after receiving or renewing a license or certificate must notify the health professional's regulatory board in writing within ten working days after the charge is filed.” The credible evidence of record presented established by clear and convincing evidence that Dr. Payne failed to notify the Board in writing within ten (10) working days of the filing of the charges. The indictments are dated June 6, 2017, and April 25, 2018. Dr. Payne did not notify the Board until he filed his renewal application on June 29, 2018. Consequently, Dr. Payne failed to comply with the requirement regardless of which indictment date is used.
Pursuant to A.R.S. § 32-1401(27)(d), “unprofessional conduct” includes “[c]ommitting a felony, whether or not involving moral turpitude, or a misdemeanor involving moral turpitude. In either case, conviction by any court of competent jurisdiction or a plea of no contest is conclusive evidence of the commission.” In this case, the credible evidence presented established by clear and convincing evidence that Dr. Payne was found guilty on July 18, 2023, of Count 1 - U.S.C. § 371 (Conspiracy), Count 2 and 3 - 18 U.S.C. § 1343, 1346 (Wire Fraud), and Count 4 - 18 U.S.C. § 1952(a) (Use of an Interstate Facility; Aiding and Abetting in the United States District Court Central District of California.
RECOMMENDED ORDER
Based on the foregoing, it is recommended that on the effective date of the Board’s final order in this matter, the Board revoke David H. Payne, M.D.’s License Number 47404.
Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.
In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.
Done this day, February 3, 2025.
/s/ Sondra J. Vanella
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Patricia E. McSorley
Executive Director
Arizona Medical Board
[email redacted]
Elizabeth A. Campbell
Office of the Attorney General
Licensing & Enforcement Section
[email redacted]
[email redacted]
David H. Payne
*LEGAL MAIL*
Inmate Number 76493112
Federal Satellite Prison Camp
5880 State Hwy. 67 South
P.O. Box 5000
Florence, CO 81226
By: OAH Staff