Background
A jury convicted Dehshid Nourian and Christopher Rydberg of healthcare fraud and money laundering after they recruited doctors to prescribe drugs to patients in exchange for a share of insurance proceeds. The scheme targeted federal employees receiving worker’s compensation and private Blue Cross Blue Shield enrollees. Nourian managed multiple pharmacies in the scheme, while Rydberg directed finances and prepared taxes. Nourian was convicted on sixteen counts and Rydberg on nine counts. Both defendants appealed their convictions and sentences.
The court’s reasoning
The court reviewed the sufficiency of the evidence de novo and found that a reasonable jury could conclude the defendants conspired to defraud both the Federal Employees Compensation Act and Blue Cross Blue Shield. The court held that the Federal Employees Compensation Act qualifies as a healthcare benefit program. Regarding money laundering, the court found sufficient evidence that the defendants knew the funds were proceeds of fraud. The court also rejected claims of prosecutorial misconduct, noting that any improper closing argument was cured by jury instructions. On sentencing, the court affirmed the application of a two-level enhancement for offenses involving ten or more victims. The court further upheld the forfeiture of a TD Ameritrade account because the defendants commingled tainted funds with untainted funds to disguise the source of the fraud.
What it means going forward
The decision reinforces the Fifth Circuit’s broad interpretation of healthcare fraud statutes and confirms that commingling illicit funds with legitimate accounts can subject entire accounts to forfeiture.