United States v. Habiboola Niamatali

712 F. App'x 417
Court of Appeals for the Fifth Circuit·Decided January 26, 2018·No. 17-40150·Unpublished·Cited by 1 cases

Opinion

PER CURIAM: *

This is an appeal from a jury conviction and sentence for conspiring to distribute, and to possess with intent to distribute, controlled substances under 21 U.S.C. §§ 841, 846. Because we conclude that venue was improper, we reverse, vacate the judgment and remand.

FACTS AND PROCEDURAL HISTORY

Dr. Habiboola Niamatali, a native of Guyana, was a primary-care physician specializing in internal medicine who operated two medical clinics in Garland and Lancaster in the Northern District of Texas. While reviewing pharmacy records, Drug Enforcement Agency (DEA) investigators began noticing Niamatali’s name on numerous controlled-substance prescriptions and began an investigation.

DEA Diversion Investigator Susannah Herkert testified that, from 2008-2011, hy-drocodone, alprazolam, and promethazine with codeine (cough syrup) accounted for approximately 77 percent of the controlled-substance prescriptions written by Niama-tali. Further, Herkert said that Niamatali ranked second in the number of prescriptions written for hydrocodone out of approximately 6,000 DEA registrants in the Dallas area. Herkert said that Niamatali’s patients were predominantly African American, often traveled from long distances, including other states, waited in long lines outside his clinics, and often paid cash. 1 Authorities characterized Niamata-li’s practice as a “pill mill,” a facility where prescriptions for controlled substances are typically written for cash and are not issued for legitimate medical reasons.

Two undercover police officers working with the DEÁ posed as patients and visited Niamatali’s clinics a total of seven times. Herkert briefed the officers on how to act and what to say about faked injuries or illnesses to obtain the targeted prescriptions. She also provided one of the officers with a fake document from another doctor regarding a prior knee injury and a driver’s license with a fake name, and instructed her to portray an exotic dancer with an ankle injury. The officers were also wired with recording devices, which did not function properly at least two times and had technical difficulties some other times. Herkert testified that, with the exception of the first visit when one of the officers was turned away for not having documentation from another doctor as a new patient, the visits resulted in prescriptions for either hydrocodone, alprazo-lam, or promethazine with codeine and were paid for in cash. She said these prescriptions were obtained outside the scope of professional practice and not for medical purposes.

Search warrants were then served on the clinics, the pharmacy next to the Lancaster clinic and Niamatali’s residence on June 14, 2011, or June 16, 2011, Authorities seized patient files containing either hydrocodone, alprazolam or promethazine with codeine prescriptions from February of 2010 forward. Herkert said authorities were searching for patient files, documentation related to the drugs in question or cash at Niamatali’s home. She said authorities believed Niamatali had a large sum of currency at the house because there had been a traffic stop during the investigation in which Niamatali allegedly pulled an envelope of cash out of his lab coat. Approximately $214,000 was found at Niamatali’s house. Some of the cash was bound with rubber bands and some was in envelopes marked with the name of the clinic, the amount of money, the date, the day of the week, and how many patients were seen in the morning or afternoon. Herkert also interviewed Niamatali at his residence the day of the search.

Niamatali acknowledged that his practices were located in high-crime areas, but explained that the hospitals had closed and that it was an underserved area. He had previously worked at the hospital in Garland and had an office attached to the hospital where he maintained a private practice. He later began working at the hospital in Lancaster and also had an office there. He also said that he saw many uninsured blue collar workers who often suffered injuries or illness, could not afford to miss work, and paid in cash or received Medicare or Medicaid. 2 He admitted to recently cutting corners in an effort to get his staff out at a reasonable hour.

Eventually, Niamatali surrendered his DEA controlled substance registration pending review, but was still able to practice medicine. The Texas Medical Board had investigated Niamatali, but had not taken any action to suspend or revoke his license at the time of trial.

• Niamatali was subsequently indicted and convicted of conspiracy to possess with the intent to distribute controlled substances in violation of 21 U.S.C. §§ 841, 846. He was sentenced to 78 months of imprisonment, two years of supervised release, ordered to pay a $50,000 fine and a $100 special assessment, and denied federal benefits for five years.

DISCUSSION

I. Whether the evidence was sufficient to establish venue in the Eastern District of Texas.

This court reviews a venue challenge properly preserved by a motion for judgment of acquittal de novo. United States v. Romans, 823 F.3d 299, 309 (5th Cir. 2016). The court considers the evidence in the light most favorable to the verdict and “will affirm where a rational jury could conclude that the government established venue by a preponderance of the evidence.” Id. (internal marks omitted); see also United States v. Strain, 396 F.3d 689, 692 (5th Cir. 2005). In a conspiracy case, “venue is proper in any district where the agreement was formed or an overt act occurred.” United States v. Caldwell, 16 F.3d 623, 624 (5th Cir.1994). An overt act is “performed to effect the object of a conspiracy, although it remains separate and distinct from the conspiracy itself.” Romans, 823 F.3d at 310 (quoting United States v. Pomranz, 43 F.3d 156, 160 (5th Cir. 1995)).

In general, “[t]o prove a conspiracy, the government must prove (1) the existence of an agreement between two or more persons to violate the narcotics laws; (2) that each conspirator knew of the conspiracy and intended to join it; and (3) that each alleged conspirator participated in the conspiracy.” United States v. Morris, 46 F.3d 410, 414-15 (5th Cir. 1995). “Everyone alleged to be part of the same single conspiracy must share a common goal.” Id. at 415. Specifically with regard to a conspiracy to possess with intent to distribute controlled substances, “[t]he overall objective or goal [is] for everyone in the conspiracy to profit from the illicit purchase and selling of [controlled substances].” Id.

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United States v. Habiboola Niamatali, 712 F. App'x 417 (5th Cir. 2018).

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