United States v. Coker

514 F.3d 562, 2008 U.S. App. LEXIS 1335, 2008 WL 190320
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 24, 2008
Docket06-6504
StatusPublished
Cited by31 cases

This text of 514 F.3d 562 (United States v. Coker) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Coker, 514 F.3d 562, 2008 U.S. App. LEXIS 1335, 2008 WL 190320 (6th Cir. 2008).

Opinion

OPINION

BOGGS, Chief Judge.

A grand jury indicted Natalie Coker on five counts of conspiring to defraud the United States, taking bribes, and violating the federal conflict of interest laws. Coker pleaded guilty to a single count of committing an illegal conflict of interest, in return for having the other charges dropped. The district judge sentenced her to forty-six months of imprisonment. Coker appeals, arguing that prosecutorial misconduct and incorrect guidelines calculations warrant vacating her sentence. We affirm because her various arguments are either waived, withdrawn, or meritless.

*565 I

Natalie Coker worked as the Assistant Director of the Veteran’s Administration’s Consolidated Mail Outpatient Pharmacy (“CMOP”) in Murfreesboro, Tennessee. Her supervisor was Joseph Haymond. CMOP mailed subsidized prescription drugs to veterans. In 1999, Coker and Haymond, aided by several co-conspirators, began exploiting their public jobs for personal gain.

A

One co-conspirator, Michael Walsh, owned Industrial Supply Company. In 1999, he learned from a business associate, Dick Pruett, that CMOP was looking for someone to supply security tape at a lower price than the $18.50 per roll CMOP was paying 3M. Walsh found a vendor in New Jersey, CGM, willing to sell tape for $2.50 a roll. 1 After Haymond approved samples of the tape, Pruett arranged a meeting on August 19, 1999, between himself, Hay-mond, Coker, and Walsh to discuss the sale. At the meeting, Haymond told Walsh to sell the tape to CMOP for $6.51 per roll, pay Haymond and Coker each a kickback of $1 per roll, and keep the rest. Coker told Walsh to subdivide each order into smaller parts to circumvent official purchasing rules and facilitate the kickback.

Soon afterwards, Walsh began selling tape to the CMOP. He later raised his price to $6.90 to help cover the taxes he was paying on the sales. Coker and Hay-mond knew of, and did not object to, the price increase. Walsh testified that his usual markup was 30% and, absent the kickbacks, he would have sold the tape for between $3.40 and $3.50 a roll. Over the next 22 months, Walsh sold over 115,000 rolls of tape to CMOP, and paid Coker and Haymond over $115,000 each in kickbacks. The scheme ended in 2001 when the VA’s regional purchasing department took over the tape purchases.

Walsh continued to sell other supplies to CMOP after the tape conspiracy ended. In early 2004, Haymond told Walsh that CMOP had sixteen extra pallets of six-by-nine mailer bags and asked if Walsh could sell them elsewhere. Walsh contacted Jay Cooper, Director of the Dallas CMOP. Walsh knew Cooper from previous deals, unrelated to CMOP, where Walsh had paid kickbacks to Cooper, and this time Walsh convinced Cooper to buy five of the pallets from CMOP. After the sale, Haymond sought his usual kickback, and told Walsh to pay Coker her cut immediately because she “needed the money.” Coker’s share was $3500. Coker then ordered Walsh to write, on Walsh’s stationary, a letter explaining the sale that would help Coker justify the sale in case the CMOP was ever audited. Walsh complied. In fall 2005, Walsh began cooperating with the FBI’s investigation into the CMOP and agreed to wear a wire during his conversations with Haymond and Coker.

Another co-conspirator, Michael Barrett, practiced law in Alabama until he was disbarred for, as he euphemistically put it, “using some client funds to pay bills.” He then entered the consulting business with his partner Kevin Bowling. They founded EconoGenesys, which made money by helping other businesses win government contracts and then taking a commission on the contract. Around January 2002, another VA employee referred Coker and Haymond to Barrett for advice. Several months later, Barrett began connecting *566 contractors with the CMOP. From 2000-OS, about ninety percent of EconoGene-sys’s revenue came from placing clients with the CMOP. Coker and Haymond knew about the contracts, and they hired Barrett as a temporary employee of the CMOP from July to October 2002.

Sometime during Barrett’s temporary employment, Haymond and Coker gave Barrett a spreadsheet showing all the contracts that Barrett had set up with CMOP. They demanded that Barrett pay them half of his profits. Barrett protested that if he paid them half, he would end up losing money after taxes. Coker responded that the taxes were Barrett’s problem, and that if he did not pay, he “would be out of the CMOP and she would tell everyone what a sorry bastard [he] was.” The three of them met again several weeks later, and Barrett agreed to pay the kickbacks as demanded. Barrett began making payments and continued to do so until the end of 2003. He paid Haymond and Coker a combined total of between $60,000 and $90,000.

Around the time of Barrett’s temporary work for CMOP, Coker and Haymond also asked Barrett to find a reliable company to repack, or prepack, prescription drugs into specific quantities and then ship the drugs to patients. When Barrett told his business partner Kevin Bowling of the request, Bowling suggested that Bowling’s father-in-law Bob Allen might be interested in forming a company to handle the job. Barrett, Bowling, Allen, Coker, and Hay-mond met to discuss the details of the operation, and then Bowling, Allen, and two other minor investors formed PrePak Systems, Inc. (“PrePak”) to handle the job. Coker helped PrePak with initial logistical and regulatory issues and wrote a formal letter to help PrePak obtain credit. PrePak received the contract in May 2003.

At the same time that Coker was advising PrePak’s start-up operations and helping PrePak win the CMOP contract, Coker began to negotiate with PrePak for employment. These negotiations took place over e-mail between November 7 and November 15. The parties discussed extensively the terms of employment, but Coker ended up declining the offer because she did not want to move.

B

Coker and Haymond were arrested on November 29, 2005. Haymond killed himself the next day. A grand jury indicted Coker on December 28, 2005, and issued a superseding indictment on February 22, 2006. The superseding indictment charged Coker with one count of conspiring with Haymond and Walsh to defraud the United States, in violation of 18 U.S.C. § 371, three counts of bribery, in violation of 18 U.S.C. § 201(b)(2), and one count of having an illegal conflict of interest by negotiating for employment with PrePak when that company had official business before her as a government employee, in violation of 18 U.S.C. §§ 208(a) and 216(a)(2). On March 24, 2006, Coker pleaded guilty to the illegal conflict of interest count in return for having the other counts dropped.

The plea agreement stated that the maximum punishment was five years of imprisonment. It also contained two other paragraphs pertinent to this appeal.

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Bluebook (online)
514 F.3d 562, 2008 U.S. App. LEXIS 1335, 2008 WL 190320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-coker-ca6-2008.