United States v. Michael

260 F. Supp. 3d 845
CourtDistrict Court, W.D. Kentucky
DecidedMay 15, 2017
DocketCIVIL ACTION NO. 3:16CR-101-CRS
StatusPublished

This text of 260 F. Supp. 3d 845 (United States v. Michael) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Michael, 260 F. Supp. 3d 845 (W.D. Ky. 2017).

Opinion

MEMORANDUM OPINION

Charles R. Simpson III, Senior Judge

This matter is before the court on motion of the defendants, Philip E. Michael, II (“Michael”) and Meds 2 Go Express Pharmacy, Inc. (“Meds 2 Go”), to dismiss Count 1 of the Second Superseding Indictment (“SSI”) charging them with knowingly and intentionally conspiring to unlawfully distribute and dispense controlled [847]*847substances.1,2 The defendants have moved to dismiss these counts for insufficiency of the indictment, citing Hamling v. United States, 418 U.S. 87, 177, 94 S.Ct. 2887, 41 L.Ed.2d 590 (1974) and Russell v. United States, 369 U.S. 749, 761, 82 S.Ct. 1038, 8 L.Ed.2d 240 (1962).

An indictment must provide a “plain, concise, and definite written statement of the essential facts constituting the offense charged.” Fed.R.Crim.P. 7(c). The purpose of an indictment is “to inform the defendant of the nature of the accusation against him.” Russell, 369 U.S. at 767, 82 S.Ct. 1038 (quoting United States v. Hess, 124 U.S. 483, 487, 8 S.Ct. 571, 31 L.Ed. 516 (1888)). “The Federal Rules of Criminal Procedure, 18 U.S.C.A., were .designed to eliminate technicalities in criminal pleading and are to be construed to secure simplicity in procedure. Rule 2, F.R.Crim.Proc.” United States v. Debrow, 346 U.S. 374, 376, 74 S.Ct. 113, 98 L.Ed. 92 (1953). As explained by the Supreme Court as early as 1895, an indictment need not be a literary work of art:

[T]he true test is, not whether it might possibly have been made more certain, but whether it contains every element of the offense intended to be charged, and sufficiently apprises the defendant of what he must be prepared to meet, and, in case any other proceedings are taken against him for a similar offense, whether the record shows with accuracy to what extent he may plead a former acquittal or conviction. Evans v. U.S., 153 U.S. 584, 587, 588, 14 S.Ct. 934 [38 L.Ed. 830 (1894) ]; Batchelor v. U.S., 156 U.S. 426, 15 S.Ct. 446 [39 L.Ed. 478 (1895) ].

Cochran v. United States, 157 U.S. 286, 290, 15 S.Ct. 628, 630, 39 L.Ed. 704 (1895).

The indictment must be read as a whole, accepting the factual allegations as true, and construing those allegations in a practical sense with all the necessary implications. United States v. Reed, 77 F.3d 139, 140 n. 1 (6th Cir. 1996) (en banc). An indictment is to be construed liberally in favor of its sufficiency. United States v. Davis, 306 F.3d 398, 411 (6th Cir. 2002).

Count 1 of the SSI alleges that

From at least in or about October 2010 and continuing until at least in or about April 2012, in the Western District of Kentucky, Jefferson County, Kentucky, and elsewhere, PHILIP MICHAEL, EUTON LAING, defendants herein, combined, conspired, confederated, and agreed with one another and others, known and unknown to the Grand Jury, to engage in a scheme to sell distribute, and dispense prescription drugs over the Internet, and to deliver those prescription drugs to customers, without issuance of valid prescriptions.

SSI, ¶ 23. The paragraph then goes on to describe in detail the means by which online drug orders were fulfilled without the issuance of a valid prescription. SSI, ¶ 23(a)-(k). The SSI specifically alleges that Michael billed the website operators for prescriptions which Aracoma and Meds 2 Go pharmacies filled, and funds in payment were wired to Michael’s accounts. SSI, ¶¶ 24-27. Additionally, the SSI alleges that Laing and others were paid by the website operators for transmission of (invalid)3 prescriptions, and alleges that it [848]*848was an object of the conspiracy that defendants Michael and Laing and others would deliver, distribute, and dispense controlled substances, including Butalbital, a Schedule III controlled substance, by means of the Internet, and aided and abetted each other in doing so, in a manner not authorized by the Controlled Substances Act, Chapter 841 of Title 21 U.S.C. SSI, ¶¶ 24-29.

As noted herein, the indictment must be read as a whole. The SSI adequately charges a conspiracy to unlawfully distribute and dispense controlled substances inasmuch as Michael, Laing, and Meds 2 Go are alleged to have knowingly and willfully conspired together and with others to engage in a scheme to sell, distribute, and dispense prescription drugs over the Internet without issuance of a .valid prescription. SSI, ¶ 23. ,

The United States summarily explains that “the. factual allegations in the Second Superseding Indictment ... describe how [the defendants] schemed to defraud customers of their money, by intentionally misleading customers to believe that the prescription drugs purchased from the RX Limited websites were legally prescribed and dispensed.” The allegations, when read as a whole, support this summary description.

Paragraph 23 describes the process by which purchases of prescription drugs were made from the RX Limited entities and then were dispensed and shipped by “Filling Pharmacies” such as Meds 2 Go and Aracoma Pharmacy. The SSI states that the prescription websites would provide an online medical questionnaire relating to the drug the customer wished to purchase, often prepopulating certain answers so that the customer would not be disqualified from- receiving that drug. Often the website would represent that a “physician consultation” was required pri- or to the order being filled. However, it is alleged that the customer would complete the transaction, paying on-line with a credit card, and then receive the drug, without the physician consultation having been done. The SSI describes that, unbeknownst to the customer, the website operator would send the completed medical questionnaire to an “Issuing Doctor”'4 who would, without any sort of consultation or contact with the customer or verification of the information provided, issue a prescription which was, thus, invalid. Accordingly, there was a “loss” to the customer, despite the customer’s receipt of the drug in the mail. As explained in United States v. Ihenacho, 716 F.3d 266, 277 (1st Cir. 2013), “From the face, of it, the consumers had received entirely legally prescribed drugs. But in fact, they had not.” The Ihenacho court quoted from United States v. Bhutani, 266 F.3d 661, 670 (7th Cir.

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Related

United States v. Hess
124 U.S. 483 (Supreme Court, 1888)
Evans v. United States
153 U.S. 584 (Supreme Court, 1894)
Batchelor v. United States
156 U.S. 426 (Supreme Court, 1895)
Cochran & Sayre v. United States
157 U.S. 286 (Supreme Court, 1895)
United States v. Debrow
346 U.S. 374 (Supreme Court, 1953)
Russell v. United States
369 U.S. 749 (Supreme Court, 1962)
Hamling v. United States
418 U.S. 87 (Supreme Court, 1974)
Lamie v. United States Trustee
540 U.S. 526 (Supreme Court, 2004)
United States v. Rosalind K. Reed
77 F.3d 139 (Sixth Circuit, 1996)
United States v. David Devon Davis
306 F.3d 398 (Sixth Circuit, 2002)
United States v. Ihenacho
716 F.3d 266 (First Circuit, 2013)
Contemporary Industries Corp. v. Frost
564 F.3d 981 (Eighth Circuit, 2009)
United States v. Smith
573 F.3d 639 (Eighth Circuit, 2009)
United States v. Williams
549 F. App'x 813 (Tenth Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
260 F. Supp. 3d 845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-michael-kywd-2017.