NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 13 vacated and remanded a lower federal court's dismissal of an insurer's petition to assert a third-party interest in a criminal forfeiture proceeding but denied the insurer's appeal of the lower court's denial of its request for restitution for $15 million that it paid its insured under the policy's employee theft coverage (Federal Insurance Company v. United States of America, Nos. 16-2967 and 16-3402, 2nd Cir., 2018 U.S. App. LEXIS 3312).
ALBUQUERQUE, N.M. - Two expert witnesses for the U.S. government can testify about sex trafficking and the prostitution trade in a criminal case against a man and his female accomplice accused of forcing a 13-year-old girl to engage in commercial sex acts, a New Mexico federal judge ruled Feb. 8 after finding that both experts meet all requirements of Federal Rule of Evidence 702, Fed. R. Evid. 702 (United States of America v. Cordny Henry, No. 16-cr-1097, D. N.M., 2018 U.S. Dist. LEXIS 20896).
ROCHESTER, N.Y. - The Fourth Department New York Supreme Court Appellate Division on Feb. 2 determined that a trial court properly found that no coverage is owed under professional liability and environmental professional liability policies for a criminal action filed against an insured and arising out of alleged violation of the Clean Air Act because the criminal action does not constitute a suit for which coverage is provided (Certified Environmental Services Inc. v. Endurance America Insurance Co., et al., No. 1510 CA 17-01125, N.Y. Sup., App. Div., 4th Dept., 2018 N.Y. App. Div. LEXIS 704).
BOSTON - Due to attorney schedule conflicts and the need to bring two recently reinstated defendants up to speed, the judge presiding over the New England Compounding Center (NECC) criminal case on Jan. 25 rescheduled the trial of the remaining nine criminal defendants from March 16 to Oct. 4 (United States of America v. Gene Svirskiy, et al., No. 14-10363, D. Mass.).
PHOENIX - Motel 6 Operating L.P. and G6 Hospitality LLC, doing business as Motel 6, maintain a policy of disclosing guest registration information to agents of U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security (DHS) without requiring a warrant or reasonable suspicion of criminal acidity in violation of the U.S. Constitution, federal civil rights statutes and Arizona statutes, several unnamed Latino guests allege in a class complaint filed Jan. 23 in the U.S. District Court for the District of Arizona (Jane V., et al. v. Motel 6 Operating L.P., et al., No. 18-242, D. Ariz.).
ROCHESTER, N.Y. - In light of a Second Circuit U.S. Court of Appeals ruling and newly submitted evidence suggesting potential criminal misuse of policyholders' personally identifiable information (PII), which was stolen in a breach of their insurer's network, a New York federal judge on Jan. 19 found that sufficient allegations of injury from the risk of future identity theft merited reconsideration of her previous decision to dismiss claims brought by some of the plaintiffs in a putative class action against the insurer (Matthew Fero, et al. v. Excellus Health Plan Inc., et al., No. 6:15-cv-06569, W.D. N.Y., 2018 U.S. Dist. LEXIS 8999).
WILMINGTON, Del. - In a dispute between an insolvent insurer and the insurer's former owner who is now in prison for wire fraud, a Delaware master in chancery on Jan. 18 recommended that the court take judicial notice of certain documents and statements pertaining to the insurer's liquidation proceeding and the owner's criminal trial (Indemnity Insurance Corp., RRG v. Jeffrey Cohen, C.A. No. 8985-CB, Del. Chanc., 2018 Del. Ch. LEXIS 16).
BOSTON - The First Circuit U.S. Court of Appeals on Jan. 12 reversed the dismissal of criminal charges against three pharmacists who shipped misbranded drugs from the former New England Compounding Center (NECC), saying that whether the pharmacists knew that the drugs were going out under phony patient names is a question of fact for a jury (United States of America v. Alla V. Stepanets, et al., Nos. 16-2502, 16-2403, 16-2404, 1st Cir., 2018 U.S. App. LEXIS 871).
WASHINGTON, D.C. - Concluding "that material factual questions remain" as to whether the Federal Bureau of Investigation conducted an adequate search for records responsive to a Freedom of Information Act (FOIA) by the Associated Press (AP) related to the bureau's use of bogus news headlines to track down criminals, a District of Columbia Circuit U.S. Court of Appeals panel on Dec. 15 reversed a trial court's judgment in favor of the FBI and the U.S. Department of Justice (DOJ) (The Reporters Committee for Freedom of the Press, et al. v. Federal Bureau of Investigation, et al., No. 17-5042, D.C. Cir., 2017 U.S. App. LEXIS 25333).
SAN JOSE, Calif. - In a Dec. 15 motion, Intuit Inc. asks a California federal court to again dismiss negligence and aiding and abetting claims brought against it related to incidents of fraudulent tax return filings, arguing that the plaintiffs did not establish any liability for the criminal activities of third parties (In re Intuit Data Litigation, No. 5:15-cv-01778, N.D. Calif.).
TAMPA, Fla. - A Florida federal judge on Dec. 12 allowed a blood spatter expert and a criminal law expert to testify for a couple in their excessive-use-of-force action against several police officers, though she did place limits on both experts' opinions (Michael Bratt, et al. v. Louis Genovese, et al., No. 8:13-cv-3210, M.D. Fla., 2017 U.S. Dist. LEXIS 204003).
BROOKLYN, N.Y. - Federal prosecutors in the criminal proceedings against convicted former pharmaceutical company CEO and hedge fund manager Martin Shkreli on Nov. 30 asked a federal judge to require him to forfeit more than $7.3 million he obtained as part of his role in the securities fraud scheme to defraud investors (United States of America v. Martin Shkreli, No. 15-637, E.D. N.Y.).
SAN JOSE, Calif. - In the wake of orders partly dismissing their claims and compelling arbitration of some parties' claims, the plaintiffs in a putative class action against Intuit Inc. filed an amended complaint in California federal court Nov. 17, restating negligence and unfair competition claims related to the filing of fraudulent tax returns by criminals that exploited purported lax security in Intuit's TurboTax software (In re Intuit Data Litigation, No. 5:15-cv-01778, N.D. Calif.).
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.).