United States v. Awni Shauaib Zayyad, 741 F.3d 452

Awni Shauaib Zayyad was convicted on five felony counts relating to the sale of counterfeit prescription drugs.
Elasmar, a counterfeit-drug operantor, supplied a telephone number to DHS which traced to Zayyad and enabled two undercover buys (500 Viagra, then 700 pills of Viagra and Cialis).
Pills seized included counterfeit Viagra/Cialis with false packaging; chemical analyses showed counterfeit content; experts testified all samples were counterfeit.
A prior mistrial occurred in the first trial after the jury deadlocked over knowledge requirements; a superseding indictment narrowed conspiracy counts and removed others.
The district court barred cross-examination about a gray-market for prescription pills under Rule 401/403, arguing lack of relevance to Zayyad’s knowledge.
At the second trial the Government again argued knowledge could be inferred from circumstances; Zayyad argued gray-market reliance as a defense.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether gray-market evidence was properly excluded	Zayyad: gray-market evidence proves real pills and supports knowledge.	Zayyad: cross-examination would prove he relied on gray-market beliefs; important to defense.	Exclusion affirmed; not preserved or not relevant to knowledge; Rule 403/401 supported.
Whether the trial court properly limited cross-examination to protect relevancy	Zayyad contends broadened cross-examination was necessary to show knowledge via gray-market beliefs.	Zayyad: needs gray-market inquiry to prove defense.	District court permissible; cross-examination limited due to lack of connection to knowledge element and defendant's own reliance.
Whether the evidence at second trial suffices to prove knowledge of counterfeiting	Government showed willful blindness and circumstantial evidence supports knowledge.	No direct confession; could be innocent gray-market inference; circumstantial evidence insufficient.	Evidence sufficient; jury could infer knowledge or willful blindness from packaging, sourcing, price, concealment.

United States v. Chong Lam, 677 F.3d 190 (4th Cir. 2012) (knowledge element required for counterfeit drug offenses)
United States v. Jinwright, 683 F.3d 471 (4th Cir. 2012) (limits on cross-examination; reliance on particular theory; evidentiary discretion)
United States v. Osburne, 514 F.3d 377 (4th Cir. 2008) (circumstantial evidence sufficient to convict where it supports guilt)
United States v. Sasso, 695 F.3d 25 (1st Cir. 2012) (negative inference from concealment supports consciousness of guilt)
United States v. Dais, 1992 WL 14595 (4th Cir. Jan. 31, 1992) (low prices may suggest illegality; willful blindness considerations)