United States v. Dennis Romano

970 F.2d 164, 1992 WL 165327
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 3, 1992
Docket91-1999
StatusPublished
Cited by80 cases

This text of 970 F.2d 164 (United States v. Dennis Romano) 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. Dennis Romano, 970 F.2d 164, 1992 WL 165327 (6th Cir. 1992).

Opinions

[165]*165MERRITT, Chief Judge.

Defendant Dennis Romano was convicted on twelve counts of conspiracy, Medicaid fraud, Medicaid kickbacks, mail fraud, and unlawful distribution of controlled substances and sentenced to a total of fifteen years imprisonment. On appeal, Romano argues that the evidence is insufficient to support his conviction on each count. In addition, defendant challenges his sentence on two bases. The first is a double counting claim; the defendant claims that the District Court improperly enhanced his sentence for the same conduct under two different provisions of the Federal Sentencing Guidelines, § 3B1.1(a) and § 2F1.1(b)(2). Second, the defendant objects that his sentence is excessive because it is much greater than sentences received by most of his co-conspirators. We affirm defendant’s conviction, but find that the District Court improperly enhanced defendant’s sentence under two separate provisions for the same conduct. Therefore, we vacate the defendant’s sentence and remand for resentencing consistent with this opinion.

I. Facts

Between 1985 and 1988, the defendant Romano and convicted co-conspirator David Stephanie, owned and operated three medical clinics in Detroit. The clinics each operated in substantially the same fashion for the purpose of defrauding the State of Michigan Medicaid Program and Blue Cross Blue Shield of Michigan. Patients visited the clinics to obtain prescription drugs (typically codeine-based medications) either for personal use or to deal on the streets. To obtain the drugs, the patients were required to submit to a number of unnecessary medical tests. The clinics then billed Medicaid and Blue Cross for performing the tests. Romano and Stephanie also received kickbacks from the American Clinical Laboratory, where blood and urine samples were sent for evaluation, and from the pharmacists who filled the prescriptions.

The Defendant hired doctors for the use of their names to prescribe medications and provider numbers to bill Medicaid for tests performed on patients. Although clinic personnel actually administered the tests to the patients, none of the claims for services submitted to the Medicaid program were for the purpose of diagnosing or treating specified illnesses or injuries. Moreover, none of the physicians who submitted claims for services provided those services themselves nor were the services performed under the direct supervision of any licensed physician. In fact, it appears that none of the Medicaid recipients ever saw a licensed physician authorized to bill under the Medicaid program. The doctors employed by the clinics rarely, if ever, saw patients themselves or even went to the clinics. Only one doctor regularly was present at the clinics, and he sat in an office and filled out charts. Therefore, all of the claims submitted by the Romano clinics to Medicaid were fraudulent.

The kickbacks were disguised as rent or sales commissions, but the evidence showed that the payments were actually made for referring business to the clinics and pharmacists from the clinics. In addition, the defendant’s wife was put on the payroll of the American Clinical Laboratory although she performed no services there. Thus, these payments constituted unlawful Medicaid kickbacks.

II. Analysis

A. Sufficiency of the Evidence

Defendant’s first assignment of error is that there is insufficient evidence to sustain his conviction on each count. The standard for reviewing a claim of insufficient evidence “is whether after viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crimes beyond a reasonable doubt.” United States v. Martin, 897 F.2d 1368, 1373 (6th Cir.1990). It is a very difficult burden to overcome. In this case the question is not a close one. There is substantial evidence on the record from which the jury could have inferred defendant’s guilt.

Numerous witnesses who had been involved in the operation of the clinics or in [166]*166the kickbacks testified against Romano at trial. Most of the witnesses had previously pled guilty to related offenses and agreed to cooperate. The witnesses included: David Stephanie; Ronald Mansur and Sharon Romzek, owners of the American Clinical Laboratory; Delores Woods and Auss Johnson, employees of the clinics; William .McPhail and John Robertson, doctors employed by the clinics; Carl Scott, Stanley Goldberg, and Douglas Schram, pharmacists who made kickback payments to Romano; and Linda Fisher, a previous owner of one of the clinics who continued to manage the clinic after she sold it to Romano. Witnesses described in detail the various fraudulent schemes perpetuated through the clinics including the receipt of kickback payments and fraudulent billing. Testimony also indicated that Romano knew about and approved of billing Medicaid for the unnecessary testing.

Based on this testimony and other evidence that was produced with regard to the operation of the Romano clinics, the jury could easily conclude that Romano was guilty on each of the twelve counts for which he was convicted. Consequently, we affirm defendant’s conviction and turn to the challenges he makes with respect to his sentence.

B. Sentencing

1. Double Counting

Defendant first claims that the District Court erred by enhancing defendant’s sentence under § 3Bl.l(a), the aggravating role provision, for being an organizer and manager of the criminal activity with control over five or more participants, and § 2Fl.l(b)(2), the fraud and deceit provision, for engaging in more than minimal planning.1 Defendant received a four level increase in his base sentence for his aggravating role and a two level increase for the degree of planning involved. Defendant argues that, because minimal planning is necessarily required to be an organizer or leader of a criminal activity involving five or more persons, he should not have received an enhancement under both sections.

The government argues that the defendant incorrectly equates the two provisions and the conduct considered under each. It interprets the provisions for more than minimal planning and being an organizer or leader as separate and distinct provisions requiring distinct facts. The government points to the decision of the Fourth Circuit in United States v. Curtis, 934 F.2d 553 (4th Cir.1991), in which the Court found it permissible to increase a defendant’s sentence by two levels for more than minimal planning as well as two levels for being an organizer or a manager.

The Court in Curtis acknowledged that double counting is impermissible under the Guidelines, but adopted a very narrow view of when that prohibition applies. The Court found that only when the Guidelines explicitly prohibit double counting2 will it be impermissible to raise a defendant’s offense level under one provision when another offense guideline already takes into account the same conduct. In all other cases, the Court concluded, the offense level adjustments for each guideline are cumulative. Thus, it is appropriate to increase the offense level for each enhancement.

We disagree with the narrow view of double counting explained in

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Bluebook (online)
970 F.2d 164, 1992 WL 165327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-dennis-romano-ca6-1992.