TAMPA, Fla. - The owner of several Florida pharmacies pleaded guilty on Nov. 6 to health care fraud and criminal gains for submitting $100 million in claims for compounded prescription drugs to health insurance programs (United States v. Nicholas A. Borgesano, Jr., No. 16-cr-353, M.D. Fla.).
NEW YORK - A federal judge in New York on Nov. 3 denied motions filed by two doctors seeking to sever their claims from a criminal insurance fraud indictment, finding that the defendants' antagonistic defenses and the possibility of prejudicial spillover did not warrant severance (United States of America v. Asim Hameedi, et al., No. 17 Cr. 137, S.D. N.Y., 2017 U.S. Dist. LEXIS 182790).
SAN FRANCISCO - A federal agency did not act in breach of contract or misrepresent itself to a reinsured agricultural business by declining to divulge information about an investigation against a federal crop insurer before the farm signed a settlement that led to criminal charges, the Ninth Circuit U.S. Court of Appeals ruled Oct. 23 (POCO LLC v. Farmer's Crop Insurance Alliance Inc., No. 16-35310, 9th Cir., 2017 U.S. App. LEXIS 20853).
BROOKLYN, N.Y. - Jurors in the criminal proceedings against alleged co-conspirator to convicted former pharmaceutical company CEO Martin Shkreli's massive securities fraud scheme Evan Greebel should not be made aware of Shkreli's acquittal on conspiracy to commit wire fraud charges, federal prosecutors argued Oct. 16 in an opposition to Greebel's request to disclose the information (United States of America v. Evan Greebel, No. 15-cr-0637, E.D. N.Y.).
CHICAGO - An expert witness for a man charged with criminal bankruptcy fraud was barred from testifying at trial on Oct. 14 by an Illinois federal judge, who found that the expert's opinions are unreliable due to a lack of any methodology and amount to "legal conclusions that are not within the province of the expert" (United States of America v. Eric E. Neushwander, No. 15-cr-542, N.D. Ill., 2017 U.S. Dist. LEXIS 170130).
PHILADELPHIA - A woman cannot seek to rescind her guilty plea on one count of malicious destruction of property by fire, the Third Circuit U.S. Court of Appeals ruled Oct. 12, finding that the commerce clause of the U.S. Constitution criminalizes the destruction of the rental property she set fire to in order to submit a fraudulent claim for insurance proceeds (United States of America v. Andrea Forsythe, No. 17-1019, 3rd Cir., 2017 U.S. App. LEXIS 19941).
WASHINGTON, D.C. - A group of former executives of the now-defunct file-sharing service Megaupload who were convicted for criminal copyright convictions won't have their questions about fugitive disentitlement of assets heard by the U.S. Supreme Court, as their petition for certiorari was denied in the high court's Oct. 2 order list (Finn Batato, et al. v. United States, No. 16-1206, U.S. Sup.).
BROOKLYN, N.Y. - AmerisourceBergen Specialty Group on Sept. 27 pleaded guilty to illegally distributing adulterated cancer drugs and agreed to pay $260 million in criminal fines and criminal forfeiture (United States of America v. AmerisourceBergen Specialty Group, LLC, No. 17-cr-507, E.D. N.Y.).
BOSTON - Aegerion Pharmaceuticals Inc. will pay more than $35 million to resolve federal criminal misdemeanor charges and civil claims that it promoted its expensive cholesterol drug Juxtapid for off-label uses and violated patient privacy and kickback laws in the process, the U.S. Attorney's Office for the District of Massachusetts announced Sept. 22 (United States of America v. Aegerion Pharmaceuticals, Inc., No. 17-cr-10288, D. Mass.).
BOSTON - A second federal criminal trial stemming from the deadly 2012 fungal meningitis outbreak tied to New England Compounding Center (NECC) got under way Sept. 19 in Boston (United States of America v. Glenn A. Chin, No. 14-cr-10363, D. Mass.).
BROOKLYN, N.Y. - Ruling that former pharmaceutical company CEO and hedge fund manager Martin Shkreli failed to show that he is not a "danger to the safety of any other person or the community if released," the New York federal judge overseeing Shkreli's criminal proceedings on Sept. 13 revoked Shkreli's bail and remanded him to custody pending sentencing on his conviction for securities fraud and conspiracy, according to a minute entry on the docket for the proceedings (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).
BROOKLYN, N.Y. - The U.S. government misled jurors by using a legally flawed definition of the term affiliate and its application to a conspiracy to commit securities fraud claim against former pharmaceutical company CEO and hedge fund manager Martin Shkreli in his criminal case, which prejudiced the jury, requiring acquittal on the count, Shkreli argues in Sept. 8 post-trial motion for acquittal (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).
NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on Aug. 18 ruled that a trial court did not abuse its discretion when it certified a general class and two subclasses of Texas prisoners suing the Texas Department of Criminal Justice (TDCJ) and two officials for allegedly failing to properly cool prison housing areas (Marvin Ray Yates, et al. v. Bryan Collier, et al., No. 16-20505, 5th Cir., 2017 U.S. App. LEXIS 15847).
SAN FRANCISCO - Allegations that a defendant gained access to copyrighted electronic design automation (EDA) software through fraud in violation of the Copyright Act are adequately pleaded, a California federal judge ruled Aug. 15 in denying a motion to dismiss (Synopsys Inc. v. Ubiquiti Network Inc., et al., No. 17-561, N.D. Calif., 2017 U.S. Dist. LEXIS 130070).
SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on Aug. 10 held that two medical assistants who filed a qui tam lawsuit under the False Claims Act (FCA) against a podiatrist they worked for could not intervene in a criminal forfeiture action brought by the federal government seeking $1.2 million for false billing to Medicare because the employees lacked standing (United States v. Neil A. Van Dyck, et al., No. 16-10160, 9th Cir., 2017 U.S. Dist. LEXIS 14780).
DENVER - A Colorado appeals panel on Aug. 10 affirmed a man's convictions for first-degree arson, criminal mischief, theft and attempted theft for intentionally setting fire to a house he lived in with his mother and then-girlfriend to obtain insurance proceeds, finding that the trial judge did not err when allowing evidence regarding his previous insurance claims (People v. Christopher Wesley Welborne, No. 14CA2242, Colo. App., 5th Div., 2017 Col. App. LEXIS 1004).
BOSTON - Three former pharmacists who worked for New England Compounding Center (NECC) during a 2012 fungal meningitis outbreak on Aug. 9 told the First Circuit U.S. Court of Appeals that it should not reverse dismissal of certain criminal claims against them (United States of America v. Alla V. Stepanets, Nos. 16-2402, 16-2403 and 16-2404, 1st Cir.).
NEW YORK - In what the Second Circuit U.S. Court of Appeals is calling the first criminal appeal related to the London Interbank Offered Rate (LIBOR) to reach a federal appellate court, the appeals court on July 19 overturned the convictions of two former employees of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank), ruling that a district court erred in allowing compelled testimony because it is not allowed in U.S. criminal cases even when it was compelled by a foreign sovereign (United States of America v. Anthony Allen, et al., Nos. 16-898-cr and 16-939-cr, 2nd Cir.).
BOSTON - The former head of New England Compounding Center (NECC) on July 7 appealed his conviction on mail fraud and racketeering charges to the First Circuit U.S. Court of Appeals (United States of America v. Barry J. Cadden, et al., No. 14-10363, D. Mass.).
BOSTON - A day after sentencing a defendant for his role in the fungal meningitis outbreak, a Massachusetts federal judge on June 27 scheduled the next criminal trial in the case for Sept. 15 (United States of America v. Glenn Chin, No. 14-10260, D. Mass.).
BOSTON - A Massachusetts federal judge on June 22 denied a judgment of acquittal or a new trial for Barry J. Cadden, the former head of the compounding pharmacy at the center of a deadly fungal meningitis outbreak (United States of America v. Barry J. Cadden, et al., No. 14-10363, D. Mass., 2017 U.S. Dist. LEXIS 96223).
ST. LOUIS - In a criminal fraud case, an Arkansas trial court correctly denied, based on a lack of authority, a request by an insolvent insurer's owner to be released from any further obligations of restitution once payment of $300,000 was made to the insurer's receiver, the Eighth Circuit U.S. Court of Appeals ruled June 15 (United States of America v. Frank Whitbeck, No. 16-1720, 8th Cir., 2017 U.S. App. LEXIS 10606).
RICHMOND, Va. - A Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent's experience alone is sufficient to qualify him as an expert, and his use of a gun-tracing report prepared by other ATF employees does not violate a criminal defendant's confrontation rights, the Fourth Circuit U.S. Court of Appeals found June 12 in affirming the defendant's conviction (United States of America v. Jarelle McLean, No. 16-4673, 4th Cir., 2017 U.S. App. LEXIS 10380).