United States v. Schneider
2013 U.S. App. LEXIS 1070
10th Cir.2013Background
- Schneiders were convicted of multiple counts of unlawful drug distribution, health care fraud, and money laundering arising from Schneider Medical Clinic operations.
- Trial courts imposed 360 months on Dr. Schneider and 396 months on Ms. Schneider; the timing and scope of the prior related proceedings are referenced.
- On appeal, they challenge conflict-free representation, admission of expert testimony, jury instructions, and sufficiency of evidence for health care fraud resulting in death.
- During proceedings, defense counsel had prior associations with Siobhan Reynolds and Pain Relief Network; potential conflicts were raised and waivers were obtained after hearings.
- The government renewed its conflict concerns in 2009; ex parte hearings were held in 2010; both Schneiders waived potential conflicts.
- The district court admitted expert testimony from Parran, Jorgensen, and Owen about care at the clinic and the alleged intent behind its practices; the defense objected to portions of this testimony.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Conflict-free representation waiver validity | Waivers valid under totality of circumstances | Waivers inadequate and ineffective | Waivers valid; remain collateral issue for claims |
| Admissibility of expert testimony on culpability | Experts could testify to guilt and intent | Experts offered improper legal conclusions and mental-state evidence | Testimony proper; did not improperly invade jury function or state intent |
| Jury instruction accuracy on § 841(a)(1) | Need explicit knowledge of illegitimate purpose or outside usual practice | Instructions were erroneous and overbroad | Instructions adequate; no reversible error |
| Effect of good-faith instruction on § 841(a)(1) liability | Good faith instruction could undermine liability findings | Good-faith instruction improperly constrains mens rea | No plain error; instruction not reversible error |
| Health care fraud resulting in death – sufficiency of evidence | Evidence shows death linked to fraud and illegal drug distribution | No causal link proven between fraud and deaths | Sufficient evidence to sustain § 1347(a) convictions and death enhancement |
Key Cases Cited
- United States v. Migliaccio, 34 F.3d 1517 (10th Cir.1994) (validity of conflict waiver considerations and narrative waiver standard)
- Holloway v. Arkansas, 435 U.S. 475 (Supreme Court 1978) (right to conflict-free counsel and waivers)
- Estelle v. Smith, 451 U.S. 454 (Supreme Court 1981) (waiver considerations for counsel and conflict)
- Liparota v. United States, 471 U.S. 419 (Supreme Court 1985) (recognition of implied mens rea in certain statutes)
- United States v. X-Citement Video, Inc., 513 U.S. 64 (Supreme Court 1994) (mens rea linkage to statute elements and construction)
- United States v. Feingold, 454 F.3d 1001 (9th Cir.2006) (discussed as comparable to instruction standards for § 841)
- United States v. Nelson, 383 F.3d 1227 (10th Cir.2004) (instruction burden on government regarding legitimate purpose and usual practice)
- United States v. Seelig, 622 F.2d 207 (6th Cir.1980) (evidence standards for § 841(a)(1) convictions outside usual practice)
- United States v. Williams, 445 F.3d 1309 (11th Cir.2006) (good-faith standard objective approach in medical prescribing context)
- United States v. Moore, N/A (Supreme Court) (general principle on objective reasonableness in medical practice standards)