The Drug Enforcement Administration, along with the Department of Public Safety regulatory agents, raided the offices of Dr. Gregory Terrell, 53, on Wednesday morning.
Texas DPS and DEA served a search warrant at about 9:50 a.m. at the doctor's office, 212 Old Grande Boulevard, Suite 120.
Agencies received a tip about controlled substances being distributed illegally from the office. DPS Trooper Jean Dark said the agencies had been working on this case for awhile.
Dr. Terrell was arrested and charged with diversion of a controlled substance. Office manager Melissa York, 48, was arrested and charged possession of a controlled substance by fraud. Both are third-degree felonies.
Terrell voluntarily surrendered his registrations that allow him to distribute controlled substances. Trooper Dark said Terrell would be booked into Smith County Jail after further interviews by authorities.
She said the investigation is ongoing and further charges may be pending.