WASHINGTON, D.C. - State Street Corp. will pay more than $64 million in criminal penalties to the U.S. Department of Justice and the Securities and Exchange Commission to settle charges that it engaged in a scheme to defraud a number of its clients by "secretly applying commissions to billions of dollars of securities trades," according to a Justice Department press release issued on Jan. 18.
ASHEVILLE, N.C. - Baxter Healthcare Corp. has agreed to pay $18.15 million in criminal and civil penalties to resolve allegations that it continued to manufacture and sell intravenous (IV) solutions made in a clean room outfitted with moldy air filters, the U.S. Justice Department announced Jan. 12 (United States of America v. Baxter Healthcare Corporation, No. 17-10, United States of America v. $8,000,000 in Funds, et al., No. 15-cv15, and United States ex rel. Christopher Wall v. Baxter International, Inc., et al., No. 13-42, W.D. N.C.).
WASHINGTON, D.C. - Orthopedic device maker Zimmer Biomet Holdings Inc. and an indirect subsidiary will pay $30.4 million to resolve criminal charges that they violated the Foreign Corrupt Practices Act (FCPA) by paying bribes to people in Mexico and for violating a 2012 deferred prosecution agreement (DPA) for earlier FCPA violations, the U.S. Justice Department announced Jan. 12 (United States of America v. Zimmer Biomet Holdings, Inc., No. 12-cr-80, United States of America v. JERDS Luxembourg Holdings S.A.R.L., No. n/a, D. D.C.).
PHILADELPHIA - On Dec. 14 and 15, separate criminal and civil complaints were filed in federal courts by the federal government and 20 states against two former executives and six generic drug manufacturers accusing them of conspiring to fix the prices, rig drug bids and allocate markets for the antibiotic doxycycline and the diabetes drug glyburide (United States of America v. Jeffrey Glazer, No. 16-cr-506, United States of America v. Jason Malek, No. 16-cr-508, E.D. Pa., The State of Connecticut, et al. v. Aurbodino Pharma USA, Inc., et al., No. 16-2056, D. Conn.).
CHICAGO - A trial judge did not err in allowing testimony from a cellphone record expert that placed a man at the location of illegal gun purchases in one state with illegal sales in another state, the Seventh Circuit U.S. Court of Appeals affirmed Dec. 9 (United States of America v. David Lewisbey, No. 14-2236, 7th Cir.; 2016 U.S. App. LEXIS 21935).
BOSTON - Six former executives and managers of drug maker Insys Therapeutics Inc. were indicted Dec. 6 for racketeering, mail fraud and wire fraud conspiracy for allegedly bribing medical practitioners to prescribe Subsys, a fentanyl-containing pain drug, and for defrauding medical insurers, according to a criminal information unsealed Dec. 8 (United States of America v. Michael L. Babich, et al., No. 16-cr-10343, D. Mass.).
BOSTON - A trial judge did not err in admitting expert testimony concerning the absence of fingerprints on a gun that a jury found a defendant had possessed, the First Circuit U.S. Court of Appeals held Dec. 1, affirming a man's conviction of being a felon in possession of a firearm (United States of America v. Verissimo Tavares, No. 14-2319, 1st Cir.; 2016 U.S. App. LEXIS 21491).
BOSTON - A defendant facing federal murder charges in connection with the New England Compounding Center (NECC) fungal meningitis outbreak on Nov. 25 asked a Massachusetts federal court to continue his January trial, saying he is at a disadvantage because he only recently got access to discovery from the personal injury multidistrict litigation that is likely to be used against him (United States of America v. Glenn Chin, No. 14-cr-10363, D. Mass.).
BOSTON - A husband and wife in the New England Compounding Center (NECC) fungal meningitis outbreak criminal case were sentenced Nov. 9 for structuring financial transactions to avoid federal reporting requirements (United States of America v. Barry J. Cadden, et al., No. 14-10363, D. Mass.).
LOS ANGELES - A California federal judge on Nov. 7 found that an attorney never represented several defendants in a criminal action and had no duty to them, dismissing their claims for violation of California's unfair competition law (UCL) and the Racketeer Influenced and Corrupt Organizations Act (Yijin Lu, et al. v. Deng, et al., No. 2:16-cv-07283, C.D. Calif.; 2016 U.S. Dist. LEXIS 154395).
LAKE CHARLES, La. - A Louisiana appeals panel on Nov. 2 found no error in the admission of testimony from a woman who interviewed a sexual abuse victim as an expert in forensic child interviewing because the woman had sufficient experience and there was enough independent evidence to support the criminal case (State of Louisiana v. Christopher Lance Washburn, No. 16-335, La. App., 3rd Cir.; 2016 La. App. LEXIS 2040).
BOSTON - A Massachusetts federal judge on Nov. 2 declined to dismiss 20 mail fraud counts against two defendants in the New England Compounding Center (NECC) fungal meningitis Racketeer Influenced and Corrupt Organizations Act criminal case (United States of American v. Barry Cadden, et al., No. 14-cr-103363, D. Mass.).
BOSTON - A trial judge did not err in continuing in the absence of a defendant a hearing under Daubert v. Merrell Dow Pharms. Inc. (509 U.S. 579 ) to determine whether an arson investigator may testify in a criminal case because there was independent evidence that the fire was deliberately set, the First Circuit U.S. Court of Appeals ruled Oct. 28 (United States of America v. Kormahyah Karmue, No. 15-1990, 1st Cir.; 2016 U.S. App. LEXIS 19475).
DENVER - The 10th Circuit U.S. Court of Appeals on Oct. 24 affirmed that a district court did not abuse its discretion in admitting a certified sexual assault nurse examiner's testimony that a victim's scratching of herself was consistent with sexual assault and domestic abuse victims coping with the trauma they have experienced (United States of America v. Leslie Chapman, Nos. 15-2143 and 15-2173, 10th Cir.; 2016 U.S. App. LEXIS 19217).
CAMDEN, N.J. - Two companies that sell transcutaneous electrical nerve stimulation (TENS) devices and associated accessories to medical professionals and allegedly submitted inflated bills to Aetna Health Inc. and Aetna Life Insurance Co. (collectively, Aetna) cannot face allegations of insurance fraud brought by the insurer, a federal judge in New Jersey rule Oct. 19, explaining that North Carolina law requires that the accused party be criminally convicted of insurance fraud before bringing the claim (Aetna Health Inc., et al. v. Carolina Analgesic Inc., et al., No. 13-7202, D. N.J.; 2016 U.S. Dist. LEXIS 144872).
CHICAGO - A defendant charged with providing a minor with a gun used in a crime failed to establish that her expert's testimony on perception and human memory is "necessary for adequate representation," an Illinois federal judge ruled Oct. 20, declining to appoint an expert under the Criminal Justice Act (United States of America v. Vandetta Redwood, No. 16-CR-80, N.D. Ill.; 2016 U.S. Dist. LEXIS 145307).
WASHINGTON, D.C. - The U.S. Department of Justice (DOJ) announced on Oct. 11 that four companies have agreed to pay $3.5 million for criminal violations of the Clean Air Act as a result of releases of hazardous pollutants at two oil- and chemical-processing facilities in Texas.
SEATTLE - A Washington federal judge on Oct. 4 ordered the U.S. government to provide more information on what its firearms expert will be testifying on in a criminal case but refused to exclude the testimony on the basis that the government stated only the general topics covered by the expert (United States of America v. Santos Peter Murillo, No. CR16-0113, W.D. Wash.; 2016 U.S. Dist. LEXIS 138595).
PORTLAND, Maine - Email statements made by a deceased man are not hearsay and are admissible in a case of mail fraud and retaliation, a Maine federal judge ruled Sept. 30, also refusing to exclude an expert's testimony that the man died from his own ingestion of a lethal amount of potassium cyanide (United States of America v. Sidney P. Kilmartin, No. 14-00129, D. Maine; 2016 U.S. Dist. LEXIS 135299).
PHILADELPHIA - A Third Circuit U.S. Court of Appeals panel on Sept. 22 vacated a trial court's partial dismissal and denial of class certification rulings issued in a lawsuit by foreign nationals who claim that attempts to deport them following criminal convictions are unconstitutional (Garfield Gayle, et al. v. Warden Monmouth County Correctional Institution, et al., No. 15-1785, 3rd Cir.; 2016 U.S. App. LEXIS 17321).
DETROIT - A group of Michigan residents on Sept. 22 filed an omnibus response in a lawsuit regarding the lead water crisis in Flint, Mich., contending that although employees of the state have yet to be indicted for the lead water crisis in Flint, there are "more than enough questions of fact, internal contradictions, and criminal falsehoods" to warrant denial of their motion to dismiss (Melissa Mays, et al. v. Gov. Rick Snyder, et al., No. 15-14002, E.D. Mich.).
BOSTON - The judge presiding over a federal criminal case in Massachusetts stemming from the fungal meningitis outbreak on Sept. 21 denied a motion by five defendants to dismiss a charge of conspiracy to defraud the Food and Drug Administration (United States of America v. Barry Cadden, et al., No. 14-10363, D. Mass.; 2016 U.S. Dist. LEXIS 128933).
BOSTON - A drug manufacturers' organization on Sept. 17 asked a federal district court to allow it to submit an amicus curiae brief in support of an acquittal or new trial for two former drug company executives convicted of adulterating and misbranding a medical device (United States of America v. William Facteau, et al., No. 15-10076, D. Mass.).