United States v. Stanton G. Polin and Florence Phillips

194 F.3d 863, 1999 U.S. App. LEXIS 26515, 1999 WL 956516
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 20, 1999
Docket98-4264
StatusPublished
Cited by34 cases

This text of 194 F.3d 863 (United States v. Stanton G. Polin and Florence Phillips) 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. Stanton G. Polin and Florence Phillips, 194 F.3d 863, 1999 U.S. App. LEXIS 26515, 1999 WL 956516 (7th Cir. 1999).

Opinion

BAUER, Circuit Judge.

On May 19, 1998, a grand jury in the Northern District of Illinois returned a seven-count indictment against appellants Stanton G. Polin and Florence Phillips (“Polin” and “Phillips”), charging them with conspiring to pay, and paying, kickbacks for the referral of Medicare patients to the Center for Vascular Studies (“CVS”) in violation of 18 U.S.C. § 371 and 42 U.S.C. § 1329a-7b. CVS is a medieal facility that provides cardiac pacemaker monitoring services to Medicare beneficiaries. Polin was a medical doctor and CVS’s director. Phillips was a registered nurse at the center and administrative assistant to Polin. The defendants were tried before the district court on September 15 and 16, 1998. At the close of the government’s case, the defendants moved for acquittal, arguing that the government had charged Polin and Phillips under the wrong section of the statute and had failed to prove the crimes actually alleged in the indictment. The district court denied the defendants’ motion and returned judgments of guilty on all seven counts. Polin and Phillips appeal from the district court’s denial of their motions. We affirm.

I. BACKGROUND

A cardiac pacemaker is an electronic device used to regulate the heart. Once implanted into the patient’s chest or abdomen, it is used to govern the heartbeat. Because of its critical function, the pacemaker must be regularly monitored to ensure its continuing good function. The monitoring can be done either in person or over the telephone and is performed by either the implanting physician or an outside monitoring service such as CVS. In about thirty percent of the cases, the physician monitors his own patients. The remainder are referred to outside services.

In May, 1992, Phillips contacted Matthew Haberkorn (“Haberkorn”), a pacemaker sales representative, 1 and offered him fifty dollars cash for each Medicare patient he referred to CVS for monitoring services. From Polin’s and Phillips’ perspective, Haberkorn was an ideally situated target and potential partner in their referral for cash scheme. Haberkorn’s job as a sales representative included selling *865 pacemakers to hospitals and physicians, attending implant procedures and making sure that patients were properly monitored after the pacemaker was implanted.

Haberkorn testified at trial that the latter responsibility often required him to refer patients to outside services such as CVS for follow-up. If the physician decided to use an outside service, Haberkorn would contact such a service, give them the patient’s data and make sure the patient was set up for the proper monitoring. Although he admitted that the physician had the right to refuse any service he chose, Haberkorn stated that he had never been overruled by a physician during his fourteen year career.

As incentive to Haberkorn to send patients their way, Phillips proposed a classic kickback scheme: for each patient Haber-korn “referred,” Polin and Phillips would pay him fifty dollars, in cash. Haberkorn would not, however, receive payment if the patient said no, if the physician said no, if the patient died before monitoring services began, or if the patient was in a nursing home with which CVS already had a monitoring contract.

Thinking that Phillips’ offer of cash payments was “wrong,” Haberkorn contacted the HHS Office of the Inspector General and worked with a special agent to formulate a plan to expose Polin and Phillips. Between November, 1992 and June, 1994, Haberkorn made more than three dozen recordings of his meetings with both Polin and Phillips, including the occasions where they gave him the money. Haberkorn and the special agent also enlisted the help of Dr. Honeid Baxamusa, an internal medicine specialist. Dr. Baxamusa agreed to give Haberkorn four additional patients to refer to CVS.

Polin and Phillips paid Haberkorn fifty dollars for each of these four patients as well as fifty dollars each for two other patients Haberkorn had received and referred from another physician. 2

The government’s evidence was primarily the testimony of Haberkorn and the tape recordings. At the close of the government’s case, and in the face of overwhelming evidence, the defendants moved for the entry of a Judgment of Acquittal. They argued that they had been incorrectly charged under 42 U.S.C. § 1329a-7b(b)(2)(A) (the “refer prong”) and that the evidence showed only that they violated 42 U.S.C. § 1329a7b(b)(2)(B) (the “recommend prong”). They asserted that it was the patient’s physician who actually “referred” the patient. Haberkorn’s role had merely been to “recommend.” Therefore, they continued, having been charged only with contravening the refer prong and the evidence proving only a violation of the recommend prong, they were entitled to a judgment in their favor. The district court disagreed and denied the motions.

Polin and Phillips were found guilty by the district court of all seven counts of conspiring to, and paying, kickbacks in violation of the Medicare Anti-Kickback Act. Each was sentenced to three years probation, three hundred hours of community service and a fine of ten thousand dollars.

II. DISCUSSION

On appeal, Polin and Phillips assert that the district court erred in denying their Rule 29 motions. They argue that “because the cardiac pacemaker patients at issue were referred by their respective physicians, not by Haberkorn or Kalins” they did not violate 42 U.S.C. § 1320a7b(b)(2)(A) as charged. They concede that they may have violated section B of the Act because they paid Haberkorn and Kalins to “recommend” to physicians that Medicare patients be sent to CVS, but they declare that behavior is of no consequence and does not prove the charges against them. We disagree.

The district court’s ruling on the motion for entry of judgment of acquittal *866 is reviewed de novo. United States v. Draves, 103 F.3d 1328 (7th Cir.), cert. denied 521 U.S. 1127, 117 S.Ct. 2528, 138 L.Ed.2d 1028 (1997). We review the entire record, but any inferences drawn therefrom are taken in the light most favorable to the government and we will reverse only if there is no evidence from which the trier- of fact could have found the essential elements of the crime beyond a reasonable doubt. Id. (citation omitted).

42 U.S.C. § 1320a-7b(b)(2) provides:

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

Related

United States v. Schena
142 F.4th 1217 (Ninth Circuit, 2025)
United States v. Stroud
Fifth Circuit, 2025
United States v. Mark Sorensen
134 F.4th 493 (Seventh Circuit, 2025)
United States v. Scott Carlberg
108 F.4th 925 (Seventh Circuit, 2024)
United States v. Marchetti
96 F.4th 818 (Fifth Circuit, 2024)
United States v. Cooper
38 F.4th 428 (Fifth Circuit, 2022)
US, et.al v. Latonya Mallory
988 F.3d 730 (Fourth Circuit, 2021)
Guilfoile v. Shields
913 F.3d 178 (First Circuit, 2019)
United States v. Jenette George
900 F.3d 405 (Seventh Circuit, 2018)
United States v. Zia Iqbal
869 F.3d 627 (Eighth Circuit, 2017)
United States ex rel. Brown v. Celgene Corp.
226 F. Supp. 3d 1032 (C.D. California, 2016)
United States v. Williams
218 F. Supp. 3d 730 (N.D. Illinois, 2016)
United States v. George
171 F. Supp. 3d 810 (N.D. Illinois, 2016)
United States v. Kamal Patel
778 F.3d 607 (Seventh Circuit, 2015)
United States v. Raymond Shoemaker
746 F.3d 614 (Fifth Circuit, 2014)
United States v. Patel
17 F. Supp. 3d 814 (N.D. Illinois, 2014)
United States v. Chris Vernon
723 F.3d 1234 (Eleventh Circuit, 2013)
US Ex Rel. Wall v. Vista Hospice Care, Inc.
778 F. Supp. 2d 709 (N.D. Texas, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
194 F.3d 863, 1999 U.S. App. LEXIS 26515, 1999 WL 956516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-stanton-g-polin-and-florence-phillips-ca7-1999.