People v. Medinas

180 Misc. 2d 251, 689 N.Y.S.2d 345, 1999 N.Y. Misc. LEXIS 106
CourtNew York Supreme Court
DecidedFebruary 4, 1999
StatusPublished
Cited by3 cases

This text of 180 Misc. 2d 251 (People v. Medinas) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Medinas, 180 Misc. 2d 251, 689 N.Y.S.2d 345, 1999 N.Y. Misc. LEXIS 106 (N.Y. Super. Ct. 1999).

Opinion

OPINION OF THE COURT

Michael R. Juviler, J.

This case raises unresolved questions that are central to the enforcement and application of a recent statute, article 178 of the Penal Law (L 1995, ch 81, § 94, eff Nov. 1, 1995). Article 178 deals with the unauthorized sale or purchase of prescription medications and prescriptions.

The indictment contains one count, which charges the defendant with criminal diversion of prescription medications and prescriptions in the third degree (Penal Law § 178.15), a class E felony. The charge alleges that the defendant knowingly bought three prescription medications whose value was more [253]*253than $1,000 from a person not authorized to sell them. He moves for an inspection of the Grand Jury minutes (CPL 210.30) and for dismissal or reduction of the charge (CPL 210.20 [1], [1-a]).

The questions raised are: (1) Does the element relating to value, which aggravates the misdemeanor to a felony, refer to the value of the medications, or to the value of the benefit exchanged for the medications? (2) Was the crime charged impossible, because the seller was an undercover investigator? (3) Does each medication require a separate count, or was it proper to join the three medications in one count?

THE CHARGE AND THE APPLICABLE STATUTE

The indictment contains one count, which alleges that “on or about and between November 1 and November 30, 1997, in the County of Kings * * * the defendant * * * knowingly received, in exchange for U.S. currency, from person(s) known to the Grand Jury * * * 300 tablets Procardia XL 60 mg.; 200 Procardia XL 90 mg.; 30 tablets Diflucan 200 mg.; with knowledge and reasonable grounds to know that the seller or transferor was not authorized by law to sell or transfer such prescription medications. The value of the prescription medications received was over one thousand dollars.”

Every offense under article 178 of the Penal Law includes a “criminal diversion act”, a term defined in Penal Law § 178.00 (3). The full text of this definition follows; the defendant is charged under paragraph (b):

“ ‘Criminal diversion act’ means an act or acts in which a person knowingly:

“(a) transfers or delivers, in exchange for anything of pecuniary value, a prescription medication or device with knowledge or reasonable grounds to know that the recipient has no medical need for it; or

“(b) receives, in exchange for anything of pecuniary value, a prescription medication or device with knowledge or reasonable grounds to know that the seller or transferor is not authorized by law to sell or transfer such prescription medication or device; or

“(c) transfers or delivers a prescription in exchange for anything of pecuniary value; or

“(d) receives a prescription in exchange for anything of pecuniary value.”

Penal Law § 178.10 provides that a person is guilty of criminal diversion of prescription medicines and prescriptions in the [254]*254fourth degree when he or she “commits a criminal diversion act.” This offense is a class A misdemeanor. The offense is raised to a class E felony, the crime charged in this case, when the offender “commits a criminal diversion act, and the value of the benefit exchanged is in excess of one thousand dollars” (Penal Law § 178.15 [1]). Higher degrees of felonies occur when the value of the benefit exchanged is greater.

“[T]he primary force behind [article 178 of the Penal Law] appears to have been the desire to create penalties for, and to make more effective the prosecution of, those involved in the thriving but illicit business of trading in Medicaid prescriptions and medications for reasons of monetary profit, not health” (Donnino, Practice Commentary, McKinney’s Cons Laws of NY, Book 39, Penal Law art 178, at 113).

Béfore article 178 was added to the Penal Law, unauthorized trafficking in prescriptions and prescription medications was a misdemeanor covered only by the Education Law (Education Law § 6808 [1]; §§ 6810, 6811 [12]). Article 178 of the Penal Law was enacted as part of chapter 81 of the Laws of 1995, a comprehensive measure designed to reform Medicaid and welfare by increasing efficiency and reducing fraud (Governor’s Mem approving L 1995, ch 81, 1995 McKinney’s Session Laws of NY, at 2296-2302). The new Penal Law provisions of article 178 are broader than the Education Law sections. In addition, unlike the Education Law, article 178 contains felony sections, whose purpose is to “assist prosecutors in tracking down and convicting persons who are illegally selling prescription drugs” (Governor’s Mem, op. cit., at 2300). Chapter 81 also added to “the number of auditors and investigators to monitor the transactions of health care providers” (ibid.).

THE EVIDENCE

The evidence before the Grand Jury shows that on November 7, 1997, an undercover investigator working for the Medicaid Fraud Control Unit of the New York State Attorney-General’s Office went to a video store with 200 90-mg tablets of a prescription medication known as Procardia XL, and 30 200-mg tablets of a prescription medication called Diflucan. These drugs had been provided by the manufacturers in sealed containers, and a special investigator in the Medicaid Fraud Control Unit had put the pills in plastic vials and had given them to the undercover agent to sell at the video store.

The undercover investigator spoke briefly with the defendant, who was operating the store. Although the defendant [255]*255initially said that he was not interested in buying anything because he had no money, the undercover agent handed the defendant a bag containing the 230 tablets. After further conversation, the defendant took the bag to the rear of the store. Presently, he returned without the tablets and handed the undercover agent $115 in cash.

Six days later, on November 13, 1997, the undercover investigator returned to the video store with 300 60-mg tablets of Procardia XL and gave them to the defendant, who bought them for $120 in cash.

A senior special auditor investigator for Medicaid fraud employed by the Attorney-General’s Office testified that according to the schedule of Medicaid-reimbursement prices for the tablets involved in this case the total value of all the tablets sold to the defendant was $1,389.19, which included $775.67 on November 7 ($471.92 for 200 tablets of Procardia XL 90-mg and $303.75 for 30 tablets of Diflucan 200-mg) and $613.52 on November 13 for 300 tablets of Procardia XL 60-mg.

THE ISSUES PRESENTED AND CONCLUSIONS OF LAW

I

One issue presented is whether the “value of the benefit exchanged” during the alleged transaction (Penal Law § 178.15 [1]) was in excess of $1,000, as the count alleges. If not, the offense is a class A misdemeanor (Penal Law § 178.10), not a class E felony.

The Attorney-General contends that the phrase “the value of the benefit exchanged” refers not to the price that the buyer pays for a medication in an illegal transaction, but to the fair value of the medication in the lawful retail market, in this case $1,389.19 for the amounts of the three medications involved. Although the statute is not entirely free from ambiguity (see, Donnino, op. cit.; cf., People v Fournier, Sup Ct, Bronx County, indictment No.

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Cite This Page — Counsel Stack

Bluebook (online)
180 Misc. 2d 251, 689 N.Y.S.2d 345, 1999 N.Y. Misc. LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-medinas-nysupct-1999.