United States v. Breimeister

133 F.4th 496
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 7, 2025
Docket23-20326
StatusPublished

This text of 133 F.4th 496 (United States v. Breimeister) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Breimeister, 133 F.4th 496 (5th Cir. 2025).

Opinion

Case: 23-20326 Document: 116-1 Page: 1 Date Filed: 04/07/2025

United States Court of Appeals for the Fifth Circuit United States Court of Appeals ____________ Fifth Circuit

FILED No. 23-20326 April 7, 2025 ____________ Lyle W. Cayce Clerk United States of America,

Plaintiff—Appellee,

versus

Scott Breimeister,

Defendant—Appellant. ______________________________

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:18-CR-368-2 ______________________________

Before Haynes, Duncan, and Wilson, Circuit Judges. Cory T. Wilson, Circuit Judge: Scott Breimeister and four codefendants were jointly tried for allegedly defrauding public and private healthcare programs out of more than $140,000,000. Five weeks into trial—after the testimony of twenty-one Government witnesses—the Government made a series of late disclosures of evidence favorable to the defense which impacted nearly a third of the testimony to date. The district court explored possible remedies for the Government’s breach, but ultimately found the curative measures proposed by the parties unlikely to produce a fair verdict. The court sua sponte declared a mistrial, and Breimeister then moved to bar retrial. The district court Case: 23-20326 Document: 116-1 Page: 2 Date Filed: 04/07/2025

No. 23-20326

denied that motion, finding that the Double Jeopardy Clause did not preclude a second trial because the mistrial was a “manifest necessity.” Breimeister now brings this interlocutory appeal, and we affirm. I. Scott Breimeister and four other defendants allegedly engaged in a scheme to defraud public and private healthcare programs through a chain of Houston-area pharmacies. Their indictment alleges that the five codefendants submitted and caused to be submitted “false and fraudulent claims for compounded drugs, ‘kits,’ ‘patches,’ and other prescription drugs.” Further, Breimeister and his codefendants allegedly took “actions to conceal the scheme or obstruct the investigation” while defrauding the programs of more than $140,000,000 and individually profiting “between hundreds of thousands of dollars and tens of millions of dollars.” The defendants jointly proceeded to trial. During five weeks of trial, the Government presented twenty-one witnesses and a host of exhibits intended to summarize the alleged fraudulent transactions. One of the Government’s final witnesses, a certified public accountant and certified fraud examiner named William Chan, testified that he prepared twelve of the Government’s summary exhibits, utilizing only the source materials listed on the exhibits (primarily bank records) and the assistance of one accounting-firm colleague. However, cross-examination exposed holes in Chan’s methodology and source materials that raised concerns with the district court about the exhibits’ reliability. Based on those concerns and at the defense’s request, the court ordered the Government to produce the unredacted notes Chan kept while preparing his summary exhibits. Chan’s unredacted notes conflicted with his testimony in two material ways. First, they revealed that Chan had worked closely with the Government to prepare his summary exhibits, rather than with just one

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accounting-firm colleague. Second, they showed that Chan relied on sources beyond those listed on the exhibits. Specifically, Chan’s notes indicated that he relied on previously undisclosed Government files and that the Government instructed him as to which sources he should and should not cite on the summary exhibits. The defense’s continued cross-examination of Chan confirmed those inconsistencies. The defense moved to strike the entirety of Chan’s testimony and exhibits. The district court granted the motion in part, striking four summary exhibits and Chan’s related testimony and instructing the jury to disregard them. The Government then conducted its redirect examination of Chan. Following Chan’s testimony, the district court ordered the Government to revisit its files and ensure that all transcripts and notes from the Government’s pre-trial interviews of witnesses were turned over to the defense. Over the intervening weekend, the Government disclosed additional interview reports and notes from interviews conducted on twelve separate dates regarding some witnesses who had already testified and others who had yet to do so. Based on those additional disclosures, the defendants jointly moved for relief. Following the additional disclosures, the district court considered the defense’s motion and potential relief, stating that “[t]he motion raise[d] troubling concerns for the [c]ourt.” Counsel for the Government represented to the court that counsel had not seen any of the newly disclosed documents before trial and that the Government was still working to ensure that all documents were disclosed to the defense, would complete its review of the documents, and would make any required disclosures by the end of the day. Faced with four Government witnesses tainted by the late disclosures, the district court discussed potential remedies with the parties and grappled with a range of possible relief, from striking testimony and recalling witnesses

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to declaring a mistrial. The court deferred settling on the appropriate relief and instead ordered the Government to complete its review and make the required disclosures so that both parties could update the court and provide their requested relief in writing by the following morning. The district court also warned that a mistrial might be necessary if more witnesses were affected by additional disclosures. Overnight, the Government made additional disclosures, and Breimeister, with two other defendants, filed an updated, joint motion for relief that outlined their individual proposals to remedy the untimely disclosures. Breimeister’s section of the motion identified at least eight witnesses whose testimony was impacted. And the defendants all took issue with Government Exhibit 1—a large compilation of data upon which “[n]umerous summary exhibits [were] based”—arguing that the belated disclosures showed that the pre-admitted exhibit was unreliable. As for relief, Breimeister stated that he “oppose[d] a mistrial . . . unless one or more of the following” occurred: 1. [T]he Government ma[de] a binding representation on the record that it w[ould] not retry him; 2. the [c]ourt ma[de] a finding that it was forced to order a mistrial sua sponte solely because of the Government’s misconduct and not at Breimeister’s request; or 3. the [c]ourt ma[de] a finding that Government agents . . . intentionally omitted favorable information from the written 302s that the agents prepared for the prosecutors to produce to defense counsel.

Breimeister further argued that “[d]eclaring a mistrial at this juncture— without any of the above occurring—would prejudice” him by depriving him of the opportunity to move for acquittal when the Government rested or to have the jury render a verdict, thereby guaranteeing the Government a

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second bite at the apple. As an alternative to a mistrial, Breimeister proposed a complex, eight-part “combination of relief.” The Government filed a response that also proffered alternatives to a mistrial. The district court reconvened later that morning, stated that it had considered the parties’ written motions for relief, and without hearing argument, declared a mistrial sua sponte. In doing so, the district court explained that alternative remedies would not suffice and noted that the testimony of at least six of the twenty-one witnesses—roughly a third—had been tainted by the Government’s late disclosures.

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Cite This Page — Counsel Stack

Bluebook (online)
133 F.4th 496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-breimeister-ca5-2025.