United States v. Pedrick

181 F.3d 1264, 1999 U.S. App. LEXIS 16932, 1999 WL 528215
Court of Appeals for the Eleventh Circuit·Decided July 22, 1999·No. 98-8870·Published·Cited by 28 cases

Opinion

HULL, Circuit Judge:

The Government appeals the district court’s order granting Defendant Mary Jane Pedrick’s motion for a new trial. After review, we affirm.

*1266 I. BACKGROUND

Pedrick was tried jointly with co-defendant Andrew Shankman, M.D. Pedrick and Shankman were charged jointly with one count of conspiracy to defraud Medicare, Medicaid, and CHAMPUS 1 in violation of 18 U.S.C. § 371 (Count 1) and eighty-nine counts of mail and wire fraud in violation of 18 U.S.C. §§ 1341 and 1343 (Counts 2 to 90). In addition, Shankman alone was subject to ten counts of unlawfully dispensing controlled substances in violation of 21 U.S.C. § 841(a)(1) (Counts 91 to 100) and twenty-five counts of money laundering to promote the scheme to defraud in violation of 18 U.S.C. §§ 2 and 1956(a)(l)(A)(i) (Counts 101 to 125).

Shankman was a psychiatrist who owned and operated Shankman/Davidson Psychiatric Management, Inc. (“SDPM”), along with co-defendant Thomas Davidson. 2 Pe-drick was a therapist who worked for Dr. Shankman and SDPM. Prior to trial, Pe-drick moved to sever her case, alleging that she would suffer compelling prejudice if tried with her co-defendants, especially in light of the unlawful drug dispensation charges against Shankman. Pedrick’s pretrial motions for severance were denied.

During the four-day trial, the Government presented fifty-five witnesses 3 and introduced thousands of documents. After deliberating for about three and a half hours, 4 the jury found Pedrick guilty of all 90 counts against her and Shankman guilty of all 125 counts against him.

Following the jury’s verdict, the district court granted Pedrick’s motion for a new trial but denied Shankman’s similar motion. 5 The district court granted Pedrick a new trial on these three grounds: (1) while sufficient to preclude a judgment of acquittal, the evidence weighed heavily enough against the verdict to require a new trial; (2) the Government’s reliance on violations of civil regulations affected Pedrick’s substantial rights; and (3) Pedrick did not receive a fair trial and suffered compelling prejudice as a result of being tried jointly with Shankman. The Government appeals the grant of a new trial to Pedrick.

II.. STANDARD OF REVIEW

A district court’s decision to grant a new trial in a criminal case, like a decision to deny a new trial, generally is reviewed for clear abuse of discretion. United States v. Vicaria, 12 F.3d 195, 197 (11th Cir.1994); United States v. Cox, 995 *1267 F.2d 1041, 1043 (11th Cir.1993). Thus, we review for clear abuse of discretion the trial court’s decision to grant a new trial based on the civil regulations and severance issues.

Where a court’s decision is based on the weight of the evidence, however, the decision to grant a motion for new trial will be “more closely scrutinize^]” than the denial of such a motion. Cox, 995 F.2d at 1043-44. This more stringent standard of review is to ensure that proper deference is given to a jury’s factual determinations. Id. Consequently, we review under this more stringent, abuse-of-discretion standard the trial court’s decision to grant a new trial based on the weight of the evidence.

III. DISCUSSION

After review, we find no clear abuse of discretion in the trial court’s granting a new trial based on its finding that Pedrick suffered compelling prejudice in being tried jointly with Shankman! Our conclu- ■ sion on severance pretermits the need to reach the other grounds relied on by the trial court.

A district court may grant' a new trial when a defendant was unable to receive a fair trial and suffered actual, compelling prejudice as a result of a joint trial. See United States v. Cassano, 132 F.3d 646, 651 (11th Cir.), cert. denied, — U.S. -, 119 S.Ct. 103, 142 L.Ed.2d 82 (1998). In determining whether the trial court abused its discretion in finding that Pedrick suffered such compelling prejudice, we examine the charges and evidence against Shankman versus those against Pedrick.

A. Charges and Overwhelming Evidence Against Shankman

In Count 1, Shankman was charged, along with his company SDPM,. Thomas Davidson, Michael Davidson, and Pedrick, with conspiring to defraud the United States by obtaining money from government programs through false claims for services not rendered as claimed and for non-reimbursable services. In Counts 2 to 55 and 86 to 90, these same Defendants were charged with mail fraud due to their causing the reimbursement checks listed in the indictment to be sent from the government programs to SDPM’s main office. In Counts 56 to 85, these same ■ Defendants were charged with wire fraud for electronically transmitting claims for reimbursement from SDPM’s main office to the government programs and thereby causing those programs to issue to SDPM the reimbursement checks listed in the indictment. Shankman also was charged with unlawful drug dispensation, and he and the Davidsons were charged with money laundering.

•The evidence presented against Shank-man on these charges was so overwhelming in -quantity and egregious in quality that it explains why the district court found that Pedrick had suffered compelling prejudice as a result of being tried jointly with Shankman. 6 The Government offered substantial evidence of Shankman’s knowledge about and involvement in SDPM’s submission of false claims to defraud and obtain money from the government. As an owner of SDPM, Shankman participated in policy decisions about how SDPM’s main office would bill the government for his and the therapists’ services and oversaw the main office’s preparation and submission of claims to the government programs. These claims were all submitted in Shankman’s name, and the checks SDPM received from- the government programs were made out to either Shankman or SDPM.

The Government introduced evidence that Shankman continued to permit SDPM’s main office to submit claims to the' government fraudulently billing therapists’ services. In 1990, an administrative *1268

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United States v. Pedrick, 181 F.3d 1264, 1999 U.S. App. LEXIS 16932, 1999 WL 528215 (11th Cir. 1999).

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