United States v. Oliver Nkuku

461 F. App'x 392
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 17, 2012
Docket10-20832
StatusUnpublished

This text of 461 F. App'x 392 (United States v. Oliver Nkuku) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Oliver Nkuku, 461 F. App'x 392 (5th Cir. 2012).

Opinion

*394 PER CURIAM: *

Oliver Nkuku was convicted by a jury for conspiracy to commit Medicare fraud and three counts of Medicare fraud. The court then sentenced Nkuku to 120 months in prison, departing upward from the guidelines. Nkuku now appeals his conviction and sentence. We AFFIRM.

A.

Nkuku and his wife started KO Medical Supply, Inc., in the spring of 2006 in Houston. Nkuku’s wife filed paperwork with Medicare to obtain a billing number and listed Nkuku as a delegated official of KO. 1 The application represented that Nkuku had no adverse legal history although in fact he had spent nine months in federal prison for conspiracy to commit mail fraud in 2000. Based on this misinformation, Medicare issued KO Medical billing numbers, and KO Medical used the numbers to bill for motorized wheelchairs and scooters. These wheelchairs were allegedly being issued to Medicare beneficiaries as replacements for equipment lost in the Gulf Coast hurricanes of the last decade. While KO did in fact distribute the wheelchairs that it billed Medicare for, there was substantial concern by the government that the beneficiaries had no medical need for them.

The government investigated KO Medical and found that most of the wheelchairs were billed with a “CR Modifier,” authorizing approval without the usual doctor’s prescription and determination of medical necessity. The modifier was meant as an emergency measure to facilitate replacing medically necessary equipment damaged or lost because of weather catastrophes. Several witnesses testified they received chairs from KO Medical that they neither requested nor needed as replacements. While in operation, KO Medical billed Medicare $1,136,493. The government estimated that 83% of the claims submitted by KO were billed fraudulently under the CR Modifier.

The jury convicted Nkuku on all counts and the court sentenced him to 120 months in prison, three years of supervised release, and restitution in the amount of $453,112.10.

Nkuku appeals his conviction on the grounds that the district court erroneously admitted testimony regarding neoprene orthotics observed during an inspection at KO Medical, and the court erred by allowing him to be cross-examined about his assertion that he “paid his debt to society.” Nkuku also challenges his sentence.

Evidentiary rulings are reviewed for an abuse of discretion where, as here, the challenging party made timely objections at trial. United States v. Hernandez-Guevara, 162 F.3d 863, 869 (5th Cir.1998). Even if there was an error, this court is not required to disturb the conviction unless there is a reasonable probability that the improperly admitted evidence contributed to the conviction. United States v. Williams, 957 F.2d 1238, 1242 (5th Cir.1992).

Mark Porter, an investigator with a Medicare contractor, conducted several on-site inspections of KO Medical. He testified that he found only one wheelchair in its inventory, which was odd considering the large volume of business KO conduct *395 ed. Porter also observed several boxes of neoprene orthotics and stated that “Medicare stopped paying for all Neoprene or-thotics in 2009 ... because of rampant fraud and abuse.” Defense counsel objected to this testimony. Overruling the objection, the court allowed Porter to give a brief explanation why the orthotics were noteworthy. Porter responded that claims involving orthotics were under review during 2009 because of fraudulent billing for medically unnecessary and unreliable services. Because of the link between orthot-ics and fraud, Porter made note of the inventory to pass on to the appropriate law enforcement contacts. Following Porter’s testimony, the judge instructed the jury that Nkuku was only on trial for what was included in the indictment. The government made no mention of orthotics in its closing arguments.

Fed.R.Evid. 404(b) states that “[e]vi-dence of other crimes, wrongs, or acts is not admissible to prove ... character,” id., but the Rule does not prohibit admission of “intrinsic background information.” United States v. Miranda, 248 F.3d 434, 440 (5th Cir.2001). Evidence is intrinsic when the acts described and the crime charged are “inextricably intertwined,” so that the testimony is “necessary to provide coherence to the government’s case.” United States v. Torres, 685 F.2d 921, 924 (5th Cir.1982). “Intrinsic evidence is admissible to ‘complete the story of the crime by proving the immediate context of events in time and place.’” United States v. Rice, 607 F.3d 133, 141 (5th Cir.2010) (quoting United States v. Coleman, 78 F.3d 154, 156 (5th Cir.1996)).

The testimony about the orthotics was a significant link in explaining why KO was subjected to prepayment review by Medicare. During his investigation, Porter discovered one wheelchair in KO’s inventory and no apparent repair facilities for the devices. In contrast, KO had a substantial supply of neoprene orthotics, a product that the government believed was frequently sold in Medicare fraud schemes. Porter also found in his review of patient records that most of the wheelchairs were being billed with the CR Modifier. The testimony about the orthotics was among the audit facts intrinsic to raising Porter’s suspicions about KO and leading to further investigation. The court did not abuse its discretion in allowing this testimony.

Nkuku also criticizes the court’s allowing the government to cross-examine Nkuku about whether he had actually “paid his debt to society.” Evidence of Nkuku’s prior conviction for fraud was before the jury, and on direct examination Nkuku’s counsel asked him if he had paid his debt to society for his past conviction, to which Nkuku replied that he had. On cross-examination, and over an objection, the government asked if he had paid the restitution, to which Nkuku said no. Nkuku claims that this exceeded the scope of evidence allowed to impeach his character for truthfulness under Fed.R.Evid. 609(a).

Rule 609(a) allows the impeachment of the accused’s character for truthfulness by the admission of a prior conviction of a crime of dishonesty. Generally, such impeachment “is limited to the number of convictions, the nature of the crimes and the dates and times of the convictions.” United States v. Gordon, 780 F.2d 1165, 1176 (5th Cir.1986).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Coleman
78 F.3d 154 (Fifth Circuit, 1996)
Sherrod v. American Airlines, Inc.
132 F.3d 1112 (Fifth Circuit, 1998)
United States v. Miranda
248 F.3d 434 (Fifth Circuit, 2001)
United States v. Zuniga-Peralta
442 F.3d 345 (Fifth Circuit, 2006)
United States v. Cisneros-Gutierrez
517 F.3d 751 (Fifth Circuit, 2008)
United States v. Harris
597 F.3d 242 (Fifth Circuit, 2010)
United States v. Rice
607 F.3d 133 (Fifth Circuit, 2010)
United States v. Lige
635 F.3d 668 (Fifth Circuit, 2011)
United States v. James C. Gordon
780 F.2d 1165 (Fifth Circuit, 1986)
United States v. Francisco De Luna-Trujillo
868 F.2d 122 (Fifth Circuit, 1989)
United States v. Frank Williams, Jr.
957 F.2d 1238 (Fifth Circuit, 1992)
United States v. Jesus Hernandez-Guevara
162 F.3d 863 (Fifth Circuit, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
461 F. App'x 392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-oliver-nkuku-ca5-2012.