UNITED STATES of America, Plaintiff-Appellee, v. Howard GRANT, Obisike Nwankwo, Clinton Lee, Defendants-Appellants.
No. 11-20013.
United States Court of Appeals, Fifth Circuit.
June 8, 2012.
683 F.3d 639
George D. Murphy, Jr. (argued), Edmond Nwamdi O‘Suji (argued), David P. Cunningham (argued), Houston, TX, for Defendants-Appellants.
Before GARZA, DENNIS and HIGGINSON, Circuit Judges.
HIGGINSON, Circuit Judge:
After a jury trial, defendants Dr. Howard Grant (“Grant“), Obisike Nwankwo (“Nwankwo“), and Clinton Lee (“Lee“) were convicted of conspiracy to commit health care fraud in violation of
Grant, Nwankwo, and Lee each appeal their convictions, claiming insufficiency of the evidence. Grant also raises the following three issues on appeal: (1) whether the district court plainly erred by admitting co-conspirator Doris Vinitski‘s statements; (2) whether the government‘s cross-examination of Dr. Grant constituted reversible prosecutorial error; and (3) whether the district court abused its discretion by not giving a missing witness instruction to the jury.
FACTS
Between 2003 and 2009, Onward Medical Supply (“Onward“), a Houston company run by Doris Vinitski (“Vinitski“), fraudulently billed Medicare for durable medical equipment that patients did not need. After a series of inspections over several years by Mark Porter, a Medicare auditor who found multiple indications of fraud at Onward, Onward voluntarily surrendered its status as an eligible Medicare supplier in August 2009. Between March 2003 and July 2009, Onward had submitted 989 claims to Medicare totaling approximately $4,000,000, of which Medicare paid Onwаrd approximately $2,000,000.
In order to submit a claim for reimbursement from Medicare for durable medical equipment, Onward needed a certificate of medical necessity and a prescription, signed by a physician. In 2008, John Nasky Okonkwo (“Okonkwo“), a co-defendant in this case, provided Vinitski/Onward with forged prescriptions for durable medical equipment. Okonkwo purchased the prescriptions, which were already signed with co-defendant Grant‘s name, from Dr. Joseph Edem (“Edem“), who owned Attentive Care Clinic in Houston. Okonkwo paid Edem $500 per motorized wheelchair prescription signed by a physician and $300 per signed prescription for orthotics. A first batch of ten to twelve prescriptions from Okonkwo arrived at Onward in late September or early October 2008.
Javonica Moten (“Moten“) worked for Onward as an administrative assistant from August 2008 through January 2009 and was co-defendant Lee‘s live-in girlfriend during that time. Moten found out about the job opening at Onward through Lee because Lee, an electrician, knew Vin-
Vinitski told Moten that co-defendant Nwankwo would deliver the equipment for the patients on the prescriptions Onward received from Okonkwo. Nwankwo made at least nine deliveries of equipment billed to Medicare using the prescriptions from Okonkwo. Nwankwo repeatedly delivered or attempted to deliver durable medical equipment to patients who were able to walk unassisted or who refused to take the equipment because they did not need it.
Moten informed Lee about the illegal practices at Onward, including that Onward used the forged prescriptions and that the beneficiaries Onward delivered equipment to were receiving equipment they did not need. However, even after Lee learned of the illegal activity at Onward, Moten testified that Lee still wanted to deliver durable medical equipment for Onward. To this end, Lee enrolled in a training class, paid for by Vinitski, in order to make deliveries for Vinitski. When Vinitski was looking for a way to pay Grant for redoing the forged prescriptions because she could not pay Grant directly, Lee suggested to Moten that he could serve as a third party through whom Vinitski could route her payments to Grant.
DISCUSSION
A. Sufficiency of the evidence
This court reviews preserved challenges to the sufficiency of the evidence de novo. United States v. McElwee, 646 F.3d 328, 340 (5th Cir. 2011). The court will “view all evidence, whether circumstantial or direct, in the light most favorable to the government, with all reasonable inferences and credibility choices to be made in support of the jury‘s verdict,” to determine whether “a rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt.” United States v. Ford, 558 F.3d 371, 375 (5th Cir. 2009). The jury “retains the sole authority to weigh any conflicting evidence and to evaluate the credibility of the witnesses.” United States v. Loe, 262 F.3d 427, 432 (5th Cir. 2001). “The evidence need not exclude every reasonable hypothesis of innocence or be wholly inconsistent with every conclusion except that of guilt,” in order to be sufficient. United States v. Moreno, 185 F.3d 465, 471 (5th Cir. 1999). However, the government “must do more than pile inference upon inference upon which to base a conspiracy charge.” United States v. Mackay, 33 F.3d 489, 493 (5th Cir. 1994) (internal quotation marks omitted).
All three defendants appeal their convictions for conspiracy to commit health care fraud in violation of
To prove a conspiracy to commit health care fraud, the government must prove beyond a reasonable doubt that (1) two or more persons made an agreement to commit health care frаud; (2) that the defendant knew the unlawful purpose of the agreement; and (3) that the defendant joined in the agreement willfully, that is, with the intent to further the unlawful purpose.
1. Dr. Howard Grant2
Grant argues that the evidence was insufficient to prove that he “joined the conspiracy or executed a scheme to defraud either on his own or in concert with others.” Grant argues that the government‘s “primary theory of prosecution” is that Grant joined the cоnspiracy by choosing not to report the illegal activity at Onward after he learned about it. The jury heard enough credible evidence, however, to determine that Grant‘s role was much more than a failure to report fraud; instead, Grant actively participated in the fraud.
Grant took the stand in his own defense. He acknowledged that the prescriptions would have been fraudulent regardless of whether they had his forged signature and regardless of whether he actually signed them because the prescriptions were for equipment that was not medically necessary for the beneficiaries. Testimony from Moten and Okonkwo showed that Grant himself demanded payment for redoing prescriptions he knew to be fraudulent.3 For examрle, Vinitski said Grant was “asking for money to ... redo the prescription order and sign it with his signature” for the forged prescriptions sent by Okonkwo and that “Dr. Grant wanted money to make those patients’ prescriptions correct.” Vinitski also said that: (1) Grant knew what was going on and had demanded $10,000 to redo the prescriptions; (2) she was going to pay Grant because “that‘s what Dr. Grant is demanding“; and (3) “she would need Dr. Grant to
Furthermore, Grant continued to speak on the phone repeatedly with Vinitski and Edem, even after he found out that Vinitski had bought prescriptions from Edem with Grant‘s forged signature.4 Grant testified that he had continued to talk to Vinitski and Edem in an effort to gather information for the qui tam lawsuit he was considering filing regarding the fraud. However, as the district court held, the jury could reasonably have found that Grant‘s explanation for the phone calls was not credible considering that he provided false information about his relationship with Edem to the attorneys he contacted about filing the qui tam lawsuit.5 See Loe, 262 F.3d at 432.
Grant also argues that because there was no proof that he received payment from the conspiracy, the evidence was insufficient to convict him of health care fraud. However, as the district court observed, neither the conspiracy nor the substantive counts with which Grant was charged required the government to prove that Grant benefitted financially from his participation in the health care fraud scheme. See
2. Obisike Nwankwo6
Nwankwo argues that there is insufficient evidence to tie him to the fraud at Onward, stating that the evidence shows that Nwankwo only found out about the fraud at Onward after his arrest and therefore could not have known about the unlawful purpose of his deliveries.7 However, there was credible evidence presented at trial that Nwankwo knew that the equipment that he was paid to deliver was not medically necessary for the beneficiaries but delivered it anyway.8
The evidence shows that Nwankwo made at least nine deliveries of equipment ordered using the fraudulent prescriptions with Grant‘s forged signature. Moreover, Moten testified Vinitski liked Nwankwo to deliver durable medical equipment ordered through the forged prescriptions because Nwankwo knew “how to make the people take the equipment even if they don‘t want it” and knew “all the right things to say to make them keep it.” Testimony at trial showed that Nwankwo made repeated attempts to deliver equipment that were unsuccessful because the patients refused to acсept the delivery or did not live at the address provided.
Evidence presented at trial showed that Nwankwo knew that at least some of the equipment he was trying to get beneficiaries to accept was medically unnecessary. Nwankwo made two deliveries of motorized wheelchairs to Samuel Anderson and Lillie Brown, both of whom were able to walk and insisted they did not need the wheelchairs.9 Lillie Brown even told Nwankwo that she “wasn‘t handicapped and that [her] doctor didn‘t prescribe [her] one” when Nwankwo unsuccessfully attempted to deliver a motorized wheelchair to her. In November 2008, Nwankwo also delivered a wheelchair to Stanley Butler, who could walk without assistance.
Finally, there was evidence presented that Nwankwo signed delivery slips that were fraudulently back-dated to appear to conform to Medicare regulations that required durable medical equipment be delivered to the beneficiary before the provider billed Medicare. For example,
Nwankwo cites United States v. Mackay, 33 F.3d 489, 494 (5th Cir. 1994), to support his contentiоn that the evidence is not sufficient to prove that he agreed to deliver fraudulent equipment. See id. at 494 (“evidence that the companion agreed to transport the backhoe does not prove that he agreed with Mackay to transport a stolen backhoe“). However, Mackay is factually distinguishable because in that case, there was no evidence that the companion (who was charged with conspiracy to transport stolen goods interstate) “knew the backhoe was stolen, let alone that he agreed to transport a stolen backhoe.” Id. at 494. Here, Nwankwo agreed to and was paid $2,910 from December 2008 to May 2009 for making equipment deliveries for Onward and knew that beneficiaries, such as Samuel Anderson and Lillie Brown, did not need or want the equipment he was delivering and that their doctors had not prescribed it. Therefore, unlike in Mackay, where there was no evidence the companion knew anything about the nature of article he was
Nwankwo also intimates that the objective of the health care fraud conspiracy had been achieved before Nwankwo began making deliveries in December 2008. Nwankwo failed, however, to suрport this contention by explaining what “objective” of the conspiracy was accomplished by December 2008. Indeed, he does not develop this contention at all. In any event, there was evidence presented at trial that Nwankwo made a delivery of fraudulently prescribed equipment in late November 2008. Furthermore, the health care fraud could not have been completed without Nwankwo‘s delivery of the equipment ordered through the forged prescriptions because Medicare requires “proof of delivery and training and education [of the beneficiary] on a particular product or service.”
3. Clinton Lee10
On appeal, Lee‘s “sole challenge is to the sufficiency of the evidence.” Howevеr, there was evidence presented at trial that Lee became aware of the fraudulent prescriptions at Onward in October 2008 but wanted to deliver medical equipment for Vinitski anyway, thereby knowingly volunteering to join the conspiracy.
Moten testified that she informed Lee: (1) about the forged prescriptions used by Onward; (2) that Onward used marketers who received commissions for bringing in beneficiaries who purchased durable medical equipment; (3) that Onward billed Medicare and got paid for equipment that had not been delivered or ordered; and (4) that the beneficiaries Onward delivered equipment to were receiving equipment they did not need.11 However, even after Lee learned of the illegal activity at Onward, Moten testified that Lee still wanted to deliver durable medical equipment for Onward. Indeed, Lee enrolled in a training class, paid for by Vinitski, in order to make deliveries for Vinitski and told Moten that he was taking the class “[s]o he could learn how to set up equipment so he could do deliveries and know how to set it up.” Moten testified that Vinitski told her to go with Lee on the first delivery after he took the class so that Moten could teach Lee about the paperwork he needed to use during deliveries. Moreover, Lee testified that he knew when he took the class that Onward‘s business “didn‘t appear to be right.”12
Moreover, Moten testified that Vinitski was looking for a way to pay Grant for redoing the forged prescriptions because she could not pay Grant directly and that Lee suggested to Moten that he could serve as a third party through whom Vinitski could route her payments to Grant. Lee argues that Moten‘s testimony about the possibility of forming a company to facilitate payment of Grant for the prescriptions Lee knew were forged “is of no moment” because there is no evidence that Lee ever contacted Grant about the possibility or took any other steps. However, Lee‘s suggestion that he could help funnel the payments when he already knew the activity was illegal certainly provides evidence that Lee knowingly and willingly (even if unprofitably) sought to participate in the fraud.
Finally, Lee‘s numerous telephone conversations with Vinitski between October 2008 and February 2009 could reasonably have led the jury to infer that Lee‘s relationship with Vinitski was more than that of an occasional electrician (the relationship Lee claims).13 Lee argues that the mere association with conspirators will not support an inference of participation in a conspiracy. However, this court has held that “even minor participation in the conspiracy may serve as the bаsis for a conviction” and that a defendant‘s “[v]oluntary participation may be inferred from a collocation of circumstances.” United States v. Bieganowski, 313 F.3d 264, 277 (5th Cir. 2002) (internal citations and quotation marks omitted).
B. Admission of Vinitski‘s statements under Fed.R.Evid. 801(d)(2)(E)
This court reviews the district court‘s admission of Vinitski‘s statements for plain error because Grant failed to object below to the admission of the statements under
Grant argues that Vinitski‘s out-of-court statements, elicited through the testimony at trial of Okonkwo and Moten, are hearsay, and therefore not admissible. See
Grant contends that Vinitski‘s statements were not in furtherance of the conspiracy because they “can be characterized as mere hand-wringing.” However, “[s]tatements regarding the payment of mоney for services rendered in accomplishing the illegal goals of a conspiracy can be considered to be ‘in the course and in furtherance of the conspiracy.‘” United States v. Garcia, 995 F.2d 556, 561 (5th Cir. 1993). Therefore, statements involving the payment of Grant for redoing the forged fraudulent prescriptions are in furtherance of the conspiracy to commit health care fraud.
Grant also contends that Vinitski‘s statements could not have been made during and in furtherance of the conspiracy because the statements were made after the objective of the conspiracy, to receive money from Medicare based on fraudulent prescriptions for durable medical equipment, had already been accomplished. Grаnt contends that, “Onward received the second set of prescriptions along with the government payment in early to mid November [2008].” However, Onward did not bill Medicare for the second set of forged prescriptions (with Grant‘s forged signature) until November 25, 2008. It is reasonable to believe that Onward would not have received full payment by early December for claims that were not even submitted until November 25. Furthermore, the government alleged a conspiracy that continued until 200915 and included as one of its objectives “concealing the submission of false and fraudulent claims to Medicare and the receipt and transfer of the proceeds from the fraud.”
Regardless, this court has held that, “[e]fforts to conceal an ongoing conspirаcy obviously can further the conspiracy by assuring that the conspirators will not be revealed and the conspiracy brought to an
C. Prosecutorial misconduct
Grant argues that the government‘s second cross-examination of him constituted prosecutorial misconduct. “Improper prosecutorial comments constitute reversible error only where the defendant‘s right to a fair trial is substantially affected.” United States v. Stephens, 571 F.3d 401, 407-08 (5th Cir. 2009) (quoting United States v. Holmes, 406 F.3d 337, 355-56 (5th Cir. 2005)). To analyze claims of prosecutorial misconduct, this court first considers “whether the prosecutor made an improper remark,” and, if so, “ask[s] whether the defendant was prejudiced.” id. at 408 (quoting United States v. Fields, 483 F.3d 313, 358 (5th Cir. 2007)).
On May 26, 2010, Grant testified and the government cross-examined him about his Medicare billing for overseeing nurses who visited home health care patients. Grant admitted that he had submitted bills for three patients after the patients had died. Later, on June 1, 2010, Grant moved to reopen his case so that he could offer an explanation for this billing. Grant‘s counsel explained that Medicare regulations permit a physician to bill for oversight services during a 60-day “certification period” after seeing the patient at the beginning of the period and that “only after notification of death ... would he not therеafter be permitted to bill.” The district court granted the motion to reopen.
During the government‘s second cross-examination of Grant, the prosecutor reasonably elicited information from Grant regarding his compliance with Medicare‘s
Grant argues that, “the government had no good faith basis for accusing Dr. Grant of improperly billing for the dead patients.” However, the prosecutor‘s cross-examination appropriately drew the jury‘s attention to (1) Grant‘s billing for services rendered to Jesse Clay two times after the date of the letter in Grant‘s patient records notifying Grant of her death; (2) Grant‘s lack of knowledge about how long he had been overseeing the three patients in question (Grice, Clay, and Collins), what their medical problems were, or how they died; and (3) the incomplete records maintained for Clyde Grice and past accusations that Grant had failed to maintain adequate medical rеcords. The government‘s cross-examination was not aimed at proving that the Grant violated accepted Medicare billing practices solely by billing for oversight services rendered after patients’ deaths; instead, it was aimed at showing Grant‘s knowledge and intent inasmuch as he billed Medicare after he was notified Jesse Clay died and that Grant‘s incomplete medical records facilitated incorrect billing.17
“In the context of cross-examination, no misconduct can arise for a question asked for a valid reason.” United States v. Munoz, 150 F.3d 401, 414 (5th Cir. 1998). Therefore, the government‘s cross-examination of Grant did not constitute reversible prosecutorial misconduct.
D. Missing witness instruction
Generally, we review a district court‘s failure to provide a requested jury instruction “under an abuse of discretion standard, affording the trial court substantial latitude in describing the law to the jurors.” United States v. Rios, 636 F.3d 168, 171 (5th Cir. 2011) (quoting United States v. Santos, 589 F.3d 759, 764 (5th Cir. 2009)). “A district court should not grant a missing witness instruction unless the individual (1) is peculiarly within one party‘s power to produce, and (2) would provide testimony that will elucidate facts at issue.” Id.
Grant focuses on the first part of this test, arguing that the district court‘s failure to provide the requested missing witness instruction was an abuse of discretion because Vinitski was “‘peculiarly within the power’ of the government to call as a witness.” To support this contention, Grant notes that Vinitski had pled guilty and was awaiting sentencing. Grant argues that “while subject to being subpoenaed by the defense, she certainly would have refused to testify for the defense,” referencing a probability that Vinitski would have invoked her Fifth Amendment right not to testify.
We have examined the consensus of caselaw, however, that holds that a coconspirator who pleads guilty and is awaiting sentencing is not peculiarly within the government‘s control so as to justify a missing witness instruction. Rios, 636 F.3d at 172 (affirming a district court‘s
Moreover, the government‘s decision not to call Vinitski as a witness was already addressed in the jury instructions. The district court instructed jurors that, “[t]he law does not require the prosecution to call as witnesses all persons ... who may appear to have some knowledge of the matters at issue at this trial. ... However, in judging the credibility of the witnesses who have testified and in considering the weight and effect of all the evidence that has been produced, the jury may consider the prosecution‘s failure to call other witnesses or to produce other evidence shown by the evidence to be in existence and available.” Therefore, the district court did not abuse its discretion by refusing to elaborate with a missing witness instruction.
CONCLUSION
We conclude that: (1) the district court did not plainly err by admitting Vinitski‘s statements; (2) the government‘s second cross-examination of Dr. Grant was not reversible prosecutorial misconduct; (3) the district court did not abuse its discretion by refusing to elaborate with a missing witness instruction; and (4) there was proof enough to support the Defendants-Appellants’ convictions. Therefore, we AFFIRM the convictions of Grant, Nwankwo, and Lee.