United States v. Margaret Davis

764 F.3d 690, 2014 U.S. App. LEXIS 16131, 2014 WL 4090812
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 20, 2014
Docket13-3297
StatusPublished
Cited by28 cases

This text of 764 F.3d 690 (United States v. Margaret Davis) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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. Margaret Davis, 764 F.3d 690, 2014 U.S. App. LEXIS 16131, 2014 WL 4090812 (7th Cir. 2014).

Opinion

ROVNER, Circuit Judge.

By all accounts, Margaret Davis relished her role as the “Mother Teresa” of the west side of Chicago. As a long time nurse and assistant professor of nursing at Chicago State University, she ran several different public health programs aimed at improving the health care of the African-American community. In addition to her roles at African American AIDS Network, Health Works of Cook County, Healthy Start, Southeast Chicago, and the Healthcare Consortium of Illinois, she was also a program director for the Chicago Chapter *692 of the National Black Nurses Association (CCBNA). In her position as program director for CCBNA, Davis solicited and oversaw public and private grants, contracts, and funds awarded to CCBNA. Between December 2005 and March 2009, Davis solicited and obtained contracts and grants totaling approximately $1,062,000 from various Illinois state agencies.

Unfortunately for the intended beneficiaries of those funds, Davis and her co-conspirator diverted a large portion of the money for their own and other unintended uses. This appeal is limited to one specific aspect of sentencing so we need not elaborate on the details of the scheme other than to say that the court estimated that, over the course of three and a half years, Davis diverted approximately $377,000. She did so by, among other things, writing checks to herself, friends, and family members; concealing conflicts of interest; hiring unqualified family members and other acquaintances for positions in projects; forging co-signatures; and falsifying information.

Davis pleaded guilty to one count of mail fraud and one count of money laundering and waived her right to appeal the reasonableness of the sentence, but reserved the right to appeal any procedural error committed by the district court or the amount of restitution, the latter of which she does not appeal.

Under the terms of the plea agreement, the parties concurred that based on the factors contained in 18 U.S.C. § 3553, Davis could be sentenced to, and the government would recommend, no higher than a below-guidelines sentence of 41 months’ imprisonment — a significant break from the advisory guidelines range calculation of 57-71 months. The agreement preserved Davis’ ability to challenge the guideline calculation and argue for whatever sentence she deemed appropriate. Davis waived the right to appeal the reasonableness of the sentence but reserved the right to challenge on appeal any procedural error at sentencing. She now claims that the district court erred procedurally by failing to adequately take into account her mental health when considering mitigating factors.

The mental health history that Davis claims was ignored was summarized in a presentence investigation report submitted to the court prior to sentencing. The report revealed that in 2007, doctors diagnosed Davis with bipolar disorder following an incident of steroid-induced psychosis that resulted from treatment for multiple sclerosis. Davis informed the probation officer who prepared the pre-sentence report that while that particular episode brought forth the diagnosis, she had been experiencing symptoms associated with bipolar disorder since the 1970s. In February 2009, approximately three years after the charged scheme to defraud began, and a few months before it ended, Davis was hospitalized for having thoughts of and planning suicide. And then in October 2009, she was hospitalized again after an episode of mania, during which time she was abnormally agitated and complained of decreased cognitive function. She underwent a neu-ropsychological evaluation on March 24, 2010, which revealed psychological distress including significant symptoms of depression, somatic complaints, and bizarre sensory experiences. Just a little more than six months later, from October 10 through October 27, 2010, she was again hospitalized at Rush University Medical Center following a manic episode. She returned to the hospital from February 10-25, 2011, due to worsening depression and problems with caring for herself. Davis reported to the probation officer that, at the time of the interview, her *693 mental health was stabilized through medication, counseling, anger management, and sleep management.

After revealing these facts, the presen-tence report specifically noted that Davis’ mental and emotional conditions might be relevant in determining whether a departure was warranted pursuant to United States Sentencing Guidelines (U.S.S.G.) § 5H1.3, and that under U.S.S.G. § 5K2.13 an adjustment might be warranted if Davis committed the offense while suffering from a significantly reduced mental capacity which substantially contributed to the commission of the offense. Finally, the pre-sentence report noted that the court could consider a sentence outside of the advisory Guidelines based on Davis’ mental and physical conditions pursuant to 18 U.S.C. § 3553(a)(1), which requires a sentencing court to consider a defendant’s history and characteristics.

Prior to sentencing, Davis filed a 105-page sentencing memorandum with 56 exhibits — 400 pages in all. Davis’ argument that her mental health was a mitigating factor was the seventh of eight arguments in the memorandum.

To support her claim, she provided her mental health records and the 2012 and 2013 statements of five treating mental health professionals from several different health care facilities. One treating psychiatrist wrote to the court that “it is highly likely that [Davis] had at least some of these clinical manifestations [of mania and major depression as part of bipolar I disorder] during the period she committed the erime(s).” R. 115. She also presented reports written by two retained forensic health care professionals. The first, Dr. Bernard Rubin, M.D., from the University of Chicago, reviewed Davis’ records, but did not see her in person nor treat her. He found that Davis had psychological and physical difficulties which began to limit her capacities for insight and judgment, including impulse control, as early as mid-2006 to early 2007. The second retained expert, Sheryl Dolezal, Psy.D., described Davis’ hypomanie behavior and physical and mental health conditions that lead to mood swings, aggression, emotional outbursts, paranoia, impulsivity and compromised judgment and decisionmaking, which Dr. Dolezal opined began prior to 2007. She wrote that, “Although Ms. Davis’ choices/crimes ... cannot be blamed entirely on her mental health or [multiple sclerosis], it is likely that they had some impact on her judgment and emotional state at the time.” ,(R. 103, Exh. 52, p. 8). She also noted, “How much of these behaviors were driving her poor judgment and decision making is difficult to determine, but are likely a factor.” Id. The sentencing memorandum also pointed out that certain members of the CCBNA had noticed symptoms of mental health problems dating back to 2006 and worsening from 2007 to 2010 (R. 103, p. 67).

The sentencing memorandum urged the court to address her mental condition and the effect it had on her ability to “exercise the power of reason and control her behavior.” (R.103, p. 78-79).

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Bluebook (online)
764 F.3d 690, 2014 U.S. App. LEXIS 16131, 2014 WL 4090812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-margaret-davis-ca7-2014.