3:24-cr-00010
E.D. Ky.Mar 19, 2025Background
- Jason Ocean and April Robertson face federal charges for conspiring to commit healthcare fraud, individual healthcare fraud, and money laundering related to fraudulent Medicaid claims in Kentucky.
- Ocean, a licensed clinical social worker, operated Ocean Behavioral Healthcare, LLC; Robertson ran Grace N Mercy Support Services, LLC.
- Allegedly, fraudulent claims were submitted over several years to Kentucky’s Department for Medicaid Services (DMS), which is based in the Eastern District (Frankfort).
- Ocean filed a motion to transfer venue to the Western District of Kentucky, claiming most relevant acts and witnesses were based there and that he would face prejudice in the Eastern District.
- The motion also invoked constitutional venue rights, claimed prospective jury prejudice, and argued convenience and justice favored transfer; both the government and co-defendant Robertson opposed transfer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper Venue Under Rule 18 & Sixth Am. | Venue proper: crimes continued and completed in Eastern Dist. | Venue improper: acts/billing mostly in Western District | Venue proper in Eastern District |
| Prejudice Justifying Transfer (Rule 21a) | No demonstrated prejudice or jury bias in this district | Prejudice as he’s unknown in Eastern, better-known in Western; racial and mental health context matters | No actual or presumed prejudice found |
| Convenience/Justice for Transfer (Rule 21b) | Transfer disadvantages parties and witnesses; neutral overall | Transfer more convenient for witnesses/parties in Western | Platt factors largely neutral; no transfer |
| Jury Demographics/Locus Argument | Racial composition not grounds for venue | Demographic & local context favor Western District jury | Racial/jury makeup not sufficient for transfer |
Key Cases Cited
- United States v. Lombardo, 241 U.S. 73 (venue proper where any part of continuing crime occurred)
- United States v. Erwin, 155 F.3d 818 (Sixth Amendment venue rule allows prosecution where crime partly committed)
- United States v. Hunt, 521 F.3d 636 (healthcare fraud elements and venue analysis)
- United States v. Ebersole, 411 F.3d 517 (venue proper where false claims are submitted to intermediary)
- United States v. Williams, 788 F.2d 1213 (substantial contacts test for venue is multi-factorial)
- Batson v. Kentucky, 476 U.S. 79 (Fourteenth Amendment requires racially neutral jury selection process)