HDRB&B Litigation Department Chair Mark A. Berman and Partner Kelly A. Zampino won an acquittal in a federal healthcare fraud conspiracy case tried before a jury and Judge Michael A. Shipp in U.S. District Court in Trenton over two weeks in June and July. The prosecution arose from parallel USAO-DNJ and ED Michigan DOJ Healthcare Fraud Task Force investigations into two Pennsylvania- and Florida-based healthcare companies that owned pharmacies across the United States.
In September 2019, a federal grand jury in Detroit returned an indictment against five corporate employees, including the CEO, the Chief Compliance Officer, a Pharmacist-in-Charge, the Operations Manager, and the Operations Supervisor, who was the firm’s client. In September 2022, Mark and Kelly won a motion in federal court in Michigan for a severance and to transfer our client’s trial to the District of New Jersey.
Last year, the company’s Chief Compliance Officer was convicted at trial by a federal jury in Detroit after the CEO, Pharmacist-in-Charge, and the Operations Manager pleaded guilty to the charges against them and agreed to cooperate with the government. All three ultimately testified as government witnesses against our client. The defense presented at trial was that, although we live in an increasingly cynical world, it is not so cynical that it is illegal to trust and rely on one’s co-workers, colleagues, and superiors, and that corporate violations of non-binding Medicare guidance do not give rise to a reasonable inference of criminal intent to defraud.
The jury returned a “not guilty” verdict after deliberating less than two hours.
If you or your business are facing the complex legal challenges posed by allegations of federal healthcare fraud or other federal criminal charges, you can trust the experience and expertise of HDRB&B’s litigation team to secure the best possible outcome, including at trial. Contact us at today.