Justia U.S. 1st Circuit Court of Appeals Opinion Summaries

Lester Aceituno was convicted of conspiracy to commit bank fraud and two counts of aggravated identity theft. The fraudulent scheme involved using stolen identification information to open bank accounts, change addresses to rented mailboxes, deposit fraudulent checks, and withdraw funds using debit cards. Aceituno opened accounts in New Hampshire and Massachusetts using stolen identities and signed documents attesting to the accuracy of the information. He also created a mailbox using a stolen identity. The scheme was led by a man known as "Abby," who provided the stolen information.The United States District Court for the District of New Hampshire denied Aceituno's Rule 29 motion, which argued insufficient evidence to prove he knew he was using real persons' identifying information. The court also rejected his claim of prosecutorial misconduct during the government's closing argument and rebuttal. Aceituno was sentenced to 30 months in prison.The United States Court of Appeals for the First Circuit reviewed the case. The court held that sufficient evidence supported the jury's finding that Aceituno knew the identification information belonged to real people. The evidence included Aceituno's repeated use of stolen identities, the bank's verification process, and testimony from a co-conspirator. The court also found that the prosecution's statements during closing arguments were fair inferences from the evidence and did not constitute misconduct. The court affirmed Aceituno's conviction. View "United States v. Aceituno" on Justia Law

Dana A. Pullman, a former Massachusetts State Police trooper and president of the State Police Association of Massachusetts (the Union), and Anne M. Lynch, head of the lobbying firm Lynch Associates, were involved in a kickback scheme. Pullman hired Lynch Associates to assist with a grievance negotiation, initially agreeing to a $200,000 fee. Later, Pullman verbally agreed to increase the fee to $350,000. After the Union received reimbursement from the Commonwealth, Pullman pressured the Union treasurer to issue a $250,000 check to Lynch Associates. Lynch then paid $20,000 to Pullman's wife. Both Pullman and Lynch were convicted of honest-services wire fraud, among other charges.The United States District Court for the District of Massachusetts convicted Pullman and Lynch of honest-services wire fraud, wire fraud, obstruction of justice, conspiracy to defraud the United States, and a racketeering conspiracy. Pullman and Lynch challenged the sufficiency of the evidence and the jury instructions, particularly regarding the honest-services wire fraud convictions. They argued that the evidence did not support a quid pro quo arrangement and that the jury instructions improperly suggested Pullman owed a fiduciary duty to the Commonwealth.The United States Court of Appeals for the First Circuit reviewed the case. The court found sufficient evidence to support the honest-services wire fraud convictions, noting the jury could reasonably infer a quid pro quo arrangement. The court also held that any instructional error regarding Pullman's fiduciary duty to the Commonwealth was harmless, as the evidence overwhelmingly showed he breached his fiduciary duty to the Union. The court reversed the wire fraud convictions and one of Lynch's tax fraud convictions based on the government's concession. The court affirmed the other convictions, including those for honest-services wire fraud, obstruction of justice, and the RICO conspiracy. The case was remanded for resentencing. View "United States v. Pullman" on Justia Law

The case involves Jovan Vavic, a former head coach of the men's and women's water polo teams at the University of Southern California (USC), who was implicated in the "Varsity Blues" college admissions scandal. Vavic was accused of facilitating the admission of students as fake athletic recruits in exchange for payments from Rick Singer, a college consultant orchestrating the scheme. The payments were allegedly made to benefit Vavic's water polo program and his sons' private school tuition.In the lower court, the United States District Court for the District of Massachusetts presided over the case. A jury convicted Vavic on three counts: conspiracy to commit mail and wire fraud and honest services mail and wire fraud, conspiracy to commit federal programs bribery, and wire fraud and honest services wire fraud. However, the district court granted Vavic a new trial, concluding that certain statements made by the government during its rebuttal closing amounted to prosecutorial misconduct. The court found that the government's statements misrepresented the law and facts, particularly regarding the payments to USC and the alleged $100,000 bribe for Agustina Huneeus's recruitment.The United States Court of Appeals for the First Circuit reviewed the case. The court affirmed the district court's order for a new trial on the honest services fraud charge (Count Sixteen) due to a Yates error, as it was impossible to determine if the jury's verdict rested on an invalid legal theory following the decision in United States v. Abdelaziz. However, the appellate court reversed the new trial order for the federal programs bribery conspiracy charge (Count Three), concluding that the government's statements did not constitute plain error and that there was no prejudicial variance or Napue error. The case was remanded for further proceedings consistent with the appellate court's opinion. View "US v. Vavic" on Justia Law

In 2023, Jorge Luis Armenteros-Chervoni, an attorney in Puerto Rico, was convicted of five offenses in the United States District Court for the District of Puerto Rico. The convictions stemmed from a visit to a correctional institution in the Commonwealth. Three convictions were for making materially false statements, and two were for attempting to provide prohibited objects to an inmate.The District Court denied Armenteros's pretrial motion to dismiss the indictment on multiplicity grounds, stating that such a dismissal was premature. At trial, the government presented testimony from an inmate about prior smuggling operations and the demand for contraband in the prison. The jury found Armenteros guilty on all counts, and he was sentenced to nine months of imprisonment for each count, to be served concurrently, along with supervised release and special assessments.The United States Court of Appeals for the First Circuit reviewed the case. The court agreed with Armenteros that two of the three false statement convictions and one of the two prohibited object convictions were multiplicitous. The court vacated these convictions and their corresponding sentences. However, the court affirmed the remaining two convictions, finding no merit in Armenteros's claims of trial error. The court held that the evidence presented at trial was relevant and not unfairly prejudicial, and that the District Court did not abuse its discretion in limiting defense counsel's closing argument. View "United States v. Armenteros-Chervoni" on Justia Law

The case involves the United States government alleging that Regeneron Pharmaceuticals violated the Anti-Kickback Statute (AKS) by covering copayments for patients prescribed Eylea, a drug used to treat wet age-related macular degeneration. The government contends that this action induced doctors to prescribe Eylea, leading to Medicare claims that were "false or fraudulent" under the False Claims Act (FCA) because they "resulted from" the AKS violation.The United States District Court for the District of Massachusetts reviewed the case and agreed with Regeneron's interpretation that the phrase "resulting from" in the 2010 amendment to the AKS requires a but-for causation standard. This means that the government must prove that the AKS violation was the actual cause of the Medicare claims. The district court noted the conflict in case law and sought interlocutory review, which was granted.The United States Court of Appeals for the First Circuit affirmed the district court's ruling. The court held that the phrase "resulting from" in the 2010 amendment to the AKS imposes a but-for causation requirement. The court reasoned that the ordinary meaning of "resulting from" requires actual causality, typically in the form of but-for causation, unless there are textual or contextual indications to the contrary. The court found no such indications in the 2010 amendment or its legislative history. Therefore, to establish falsity under the FCA based on an AKS violation, the government must prove that the kickback was a but-for cause of the submitted claim. View "United States v. Regeneron Pharmaceuticals, Inc." on Justia Law

Humana, a health insurance company and Medicare Part C and Part D sponsor, filed a lawsuit against Biogen, a drug manufacturer, and Advanced Care Scripts, Inc. (ACS), a specialty pharmacy, in the District of Massachusetts. Humana alleged that Biogen and ACS engaged in fraudulent schemes involving three multiple sclerosis drugs, violating the civil RICO statute. Humana claimed that Biogen "seeded" the market with these drugs, funneled patients into Medicare, and indirectly funded patient copays through third-party patient-assistance programs (PAPs). Humana also alleged that ACS aided Biogen's scheme by steering patients and acting as an intermediary between Biogen and the PAPs, causing the submission of false certifications to Humana.The district court dismissed the case, ruling that Humana lacked standing to bring RICO claims because it was an indirect purchaser and failed to plead the RICO claims with particularity as required by Federal Rule of Civil Procedure 9(b). The court found that Humana did not specify the time, place, and content of the alleged fraudulent communications and failed to detail the false certifications' language, timing, and context. Humana's motion for leave to amend the complaint was also denied.The United States Court of Appeals for the First Circuit reviewed the case. The court affirmed the district court's dismissal, agreeing that Humana failed to meet the heightened pleading standard of Rule 9(b) for its RICO claim. The court held that Humana did not provide specific details about the fraudulent certifications or the use of mail or wire communications in furtherance of the scheme. The court also upheld the denial of leave to amend, citing undue delay and the inefficiency of seeking amendment after dismissal. View "Humana Inc. v. Biogen, Inc." on Justia Law

In this case, the defendant, a local attorney, was contracted by Theory Wellness, a marijuana dispensary operator, to assist in obtaining a host community agreement from the City of Medford, Massachusetts. Instead of legitimate lobbying, the defendant attempted to bribe Medford's chief of police through the chief's brother. This led to the defendant's convictions on two counts of honest-services wire fraud and one count of federal programs bribery.The United States District Court for the District of Massachusetts presided over the trial, where a jury convicted the defendant on all counts. The defendant was sentenced to concurrent twenty-four-month terms of imprisonment. The defendant appealed, challenging the sufficiency of the evidence, the admission of certain testimony, and the jury instructions.The United States Court of Appeals for the First Circuit reviewed the case. The court vacated the honest-services wire fraud convictions, finding that the district court erroneously admitted the only evidence establishing the jurisdictional element of those counts. However, the court affirmed the federal programs bribery conviction, concluding that the evidence was sufficient to support the jury's finding that the defendant intended to bribe the chief of police.The court held that the defendant's actions constituted a bribery scheme under 18 U.S.C. § 666, even if the defendant did not believe the chief had accepted the bribe. The court also found that the district court's failure to instruct the jury on the requirement of an "official act" was harmless, as the evidence overwhelmingly supported the conclusion that the defendant sought official acts from the chief. The court rejected the defendant's entrapment defense, finding no improper inducement by the government and that the defendant was predisposed to commit the crime. View "United States v. O'Donovan" on Justia Law

Manish Kumar was involved in a scheme to smuggle misbranded prescription drugs and controlled substances into the United States from March 2015 to August 2019. Kumar, an Indian national, was a partner in Mihu, a New Delhi-based company that sold generic versions of drugs like Viagra, Cialis, Adderall, and tramadol without FDA approval or proper prescriptions. Kumar managed call centers in India where representatives made false statements to U.S. customers, claiming the drugs were FDA-approved and that no prescriptions were needed. Kumar was arrested in August 2019 on unrelated identity theft charges and later charged in Massachusetts with conspiracy to smuggle drugs, distribute controlled substances, and make false statements. He pled guilty to all charges in October 2022.The United States District Court for the District of Massachusetts sentenced Kumar to 87 months in prison. The court applied a fraud cross-reference in the Sentencing Guidelines and accepted the government's estimate of the loss amount involved in the offense, which was approximately $3.8 million. Kumar objected to both the application of the fraud cross-reference and the loss amount calculation, arguing that the evidence was insufficient.The United States Court of Appeals for the First Circuit reviewed the case. The court held that the fraud cross-reference was correctly applied because the false statements made by call center representatives were within the scope of Kumar's conspiracy and were made in furtherance of the criminal activity. The court also found that the sentencing court did not clearly err in its loss amount calculation, as it relied on detailed government estimates and supporting data. The First Circuit affirmed Kumar's 87-month sentence. View "United States v. Kumar" on Justia Law

Nathan Reardon, the appellant, pleaded guilty in 2022 to five counts of bank fraud related to fraudulent loan applications for pandemic-relief funds. He was sentenced to five concurrent twenty-month terms of imprisonment followed by three years of supervised release. The First Circuit previously vacated a special condition of his supervised release that banned him from self-employment due to inadequate explanation. On remand, the district court provided a fuller explanation and retained the condition. Reardon’s supervised release began on July 7, 2023, but within six weeks, the probation office filed a petition to revoke it, citing multiple violations, including failure to provide financial information, engaging in self-employment, and incurring new credit charges without approval.The United States District Court for the District of Maine held a preliminary hearing and found probable cause for the violations, leading to Reardon's detention. At the revocation hearing, Reardon did not contest the violations. The district court calculated a guideline sentencing range of three to nine months and ultimately imposed a nine-month term of imprisonment followed by twenty-five months of supervised release. The court noted the immediacy and flagrancy of Reardon’s violations and his disregard for the conditions of his release.The United States Court of Appeals for the First Circuit reviewed the case and affirmed the district court’s decision. The appellate court found no procedural error, noting that the district court had adequately considered the relevant statutory sentencing factors and addressed the mitigating factors presented by Reardon. The court also held that the nine-month sentence was substantively reasonable given the nature and circumstances of Reardon’s violations. View "United States v. Reardon" on Justia Law

Damian Cortez was involved in a criminal case where he was charged with conspiracy to distribute and possess with intent to distribute controlled substances, and possession with intent to distribute fentanyl. The government alleged that Cortez was part of a Massachusetts gang known as "NOB" and was involved in various criminal activities, including drug trafficking. Cortez conditionally pled guilty to the charges after his motions to suppress evidence obtained from two search warrants were denied by the district court.The United States District Court for the District of Massachusetts denied Cortez's motions to suppress evidence seized from an apartment in Attleboro, Massachusetts, and from two cell phones. Cortez argued that the affidavit supporting the search warrant for the apartment did not establish probable cause that he was involved in a RICO conspiracy or that he resided in the apartment. He also requested a Franks hearing, claiming that the affidavit contained false statements and omissions. The district court found that the affidavit provided sufficient probable cause and denied the request for a Franks hearing.The United States Court of Appeals for the First Circuit reviewed the case and affirmed the district court's decision. The court held that the affidavit established probable cause to believe that Cortez was involved in a RICO conspiracy and that he resided in the Attleboro apartment. The court noted that the affidavit included evidence from GPS data, photographic evidence, and direct observations linking Cortez to the apartment. The court also found that Cortez did not make a substantial preliminary showing that the affidavit contained false statements or omissions necessary to warrant a Franks hearing. Therefore, the court upheld the denial of the motion to suppress and the request for a Franks hearing. View "United States v. Cortez" on Justia Law