United States v. John Holland

117 F.4th 1352
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 25, 2024
Docket22-14219
StatusPublished

This text of 117 F.4th 1352 (United States v. John Holland) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. John Holland, 117 F.4th 1352 (11th Cir. 2024).

Opinion

USCA11 Case: 22-14219 Document: 87-1 Date Filed: 09/25/2024 Page: 1 of 18

[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 22-14219 ____________________

UNITED STATES OF AMERICA, Plaintiff-Appellant, versus JOHN HOLLAND, EDMUNDO COTA, WILLIAM MOORE, Defendants-Appellees.

Appeal from the United States District Court for the Northern District of Georgia D.C. Docket No. 1:17-cr-00234-AT-CMS-1 ____________________ USCA11 Case: 22-14219 Document: 87-1 Date Filed: 09/25/2024 Page: 2 of 18

2 Opinion of the Court 22-14219

Before WILSON, JILL PRYOR, and BRASHER, Circuit Judges. BRASHER, Circuit Judge: This appeal is about an exclusion from the hearsay rule for the statements of a party’s coconspirators. The government ac- cused the defendants of participating in an illegal healthcare kick- back scheme and sought to introduce at trial out-of-court state- ments made by the defendants’ alleged coconspirators. But because the district court held that the government failed to prove that the defendants had the relevant mental state to make their conduct a crime, the district court refused to admit the statements. The dis- trict court erred. One need not show that a conspiracy was unlaw- ful to introduce coconspirator statements. So long as those state- ments were made during and in furtherance of a joint venture that included an opposing party, the statements are admissible. Because the district court excluded the statements in this case based on an erroneous view of the law, we reverse and remand. I.

The Anti-Kickback Statute is a federal law prohibiting peo- ple from referring or accepting the referral of patients covered by a federal healthcare program in exchange for a payment. 42 U.S.C. § 1320a–7b. This statute was allegedly violated by John Holland, William Moore, and Ed Cota. Cota and his wife Tracey ran a set of clinics for Hispanic women and children, which the parties call Clinica. Holland and Moore, meanwhile, were hospital executives for Tenet Healthcare. Holland and Moore allegedly increased the number of childbirths at Tenet hospitals by paying the Cotas to USCA11 Case: 22-14219 Document: 87-1 Date Filed: 09/25/2024 Page: 3 of 18

22-14219 Opinion of the Court 3

refer Medicaid or Medicare-covered pregnant women to the hospi- tals. The payments, the government says, came in the form of con- tracts to hire the Cotas to provide translation services for the women that they referred. Tracey Cota pleaded guilty to violating the AKS by partici- pating in this scheme. The district court accepted that plea, finding “a basis of fact that comprehends each and every element of the offense charged to which she is pleading.” But the other defendants maintain that their business relationship did not violate the AKS, in part because they lacked the relevant mental state or mens rea. In prosecuting the three defendants, the government in- tended to rely on out-of-court statements from several of their un- indicted coconspirators. The defendants moved for a pretrial hear- ing under United States v. James, 590 F.2d 575 (5th Cir. 1979) (en banc),1 which requires a district court to determine the admissibil- ity of coconspirator statements under an exclusion from the hear- say rule. The government consistently objected to how the defend- ants envisioned the hearing, calling it an improper “attempt to con- duct a mini-trial” on the AKS conspiracy charge. The government argued that the court should not allow the defendants “to contest whether a crime occurred” or address the “wholesale exclusion of all co-conspirator statements on the ground that no crime oc- curred.” In its final brief in response to the defendants’ arguments,

1 We are bound by decisions of the United States Court of Appeals for the Fifth Circuit issued before October 1, 1981. Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc). USCA11 Case: 22-14219 Document: 87-1 Date Filed: 09/25/2024 Page: 4 of 18

4 Opinion of the Court 22-14219

the government asked the district court to decline the defendants’ “invitation to hold an impermissible summary judgment proceed- ing” on whether the defendants committed a crime. Over the government’s objection, the district court decided to hold a pretrial “paper” hearing to test whether the government could prove that the defendants engaged in an AKS conspiracy with their alleged coconspirators. Based on the government’s eviden- tiary presentation, including the guilty plea of one coconspirator, Tracey Cota, the district court recognized that the charged cocon- spirators worked together toward a common goal: “It is beyond dispute that (1) Holland, Moore, and Cota worked together to cre- ate contractual relationships between Clinica and Tenet hospitals, (2) under the terms of the contracts, Tenet paid Clinica, and (3) Clinica referred patients to Tenet hospitals.” But the district court held that this showing was not good enough. To admit the offered coconspirator statements, the district court believed that the gov- ernment had to prove by a preponderance of the evidence that the defendants’ conduct was illegal to meet its burden under Rule 801(d). Specifically, the district court concluded that the govern- ment needed to show that the participants in this scheme willfully violated the AKS. And the district court believed willfulness re- quired knowledge of illegality. Because the district court found that the government did not prove knowledge of illegality, and thus willfulness, to its satisfaction at the paper hearing, the district court reasoned that the government had not proven the existence of an USCA11 Case: 22-14219 Document: 87-1 Date Filed: 09/25/2024 Page: 5 of 18

22-14219 Opinion of the Court 5

illegal AKS conspiracy. And without an illegal conspiracy, the dis- trict court held that it could not admit coconspirator statements under the coconspirator exclusion from the hearsay rule. The government appealed the district court’s decision. In their briefing, all parties assumed implicitly that the government had to prove the charged AKS conspiracy to admit the statements, with the government insisting that it could prove the defendants’ guilt and the defendants maintaining that it could not. But in a let- ter to the parties, we raised a question left unaddressed by them: Does a conspiracy need to be unlawful to introduce coconspirator statements under the Federal Rules of Evidence? In other words, was the district court wrong to conclude that the government needed to prove, before trial, all the elements of an illegal AKS con- spiracy to have the coconspirator statements admitted? The parties addressed this question at oral argument and in letters to the court under Federal Rule of Appellate Procedure 28(j). We answer it now. II.

Under 18 U.S.C. § 3731, the United States can appeal a dis- trict court’s decision to exclude evidence in a criminal proceeding. Here, the government appeals after the district court excluded statements from the defendants’ alleged coconspirators. We re- view a district court’s evidentiary rulings, including those concern- ing the admissibility of coconspirator statements, for an abuse of discretion. United States v.

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Bluebook (online)
117 F.4th 1352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-holland-ca11-2024.