Background

• Gutman was convicted in a bench trial of theft, vendor fraud, and money laundering, and sentenced to 66 months’ imprisonment with $1.2 million restitution.
• The appellate court upheld theft and vendor fraud but vacated and remanded the money laundering conviction, relying on the definition of “proceeds” as profits.
• Illinois Medical Assistance Program pays for patient transportation; the program’s contractors submit bills with service codes that affect payment rates.
• Gutman and Lubenskiy formed Egra Medical Transportation; after a form error suggested an incentive to alter service codes, they began submitting false bills.
• Gutman and Lubenskiy later reformed the company as Universal Transportation Company (UPT); a third party appeared as owner to comply with bans from federal programs.
• From 2001 to 2002, UPT billed about $6 million to the State of Illinois and received about $3 million; funds were funneled to Gutman and Lubenskiy, used to acquire real estate and vehicles and to pay living expenses.

Issues

Key Cases Cited

• Santos v. United States, 553 U.S. 507 (2008) (definition of proceeds; plurality and dissent on profits vs receipts)
• Clark v. Martinez, 543 U.S. 371 (2005) (same word in same statute should have consistent meaning)
• People v. Cryns, 203 Ill. 2d 264 (2003) (statutory interpretation; canons of construction)
• People v. Garcia, 241 Ill. 2d 416 (2011) (statutory interpretation; language and intent)
• People v. Jones, 223 Ill. 2d 569 (2006) (statutory interpretation; rule of lenity considerations)
• Muscarello v. United States, 524 U.S. 125 (1998) (rule of lenity guidance in ambiguous statutes)
• People v. Miller, 238 Ill. 2d 161 (2010) (one-act, one-crime doctrine context)