United States v. Tangtang Zhao

CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 24, 2025
Docket23-3366
StatusPublished

This text of United States v. Tangtang Zhao (United States v. Tangtang Zhao) 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. Tangtang Zhao, (7th Cir. 2025).

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 23-3366 UNITED STATES OF AMERICA, Plaintiff-Appellee, v.

TANGTANG ZHAO, Defendant-Appellant. ____________________

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:21-cr-00505-1 — Manish S. Shah, Judge. ____________________

ARGUED NOVEMBER 8, 2024 — DECIDED JUNE 23, 2025 ____________________

Before RIPPLE, HAMILTON, and KIRSCH, Circuit Judges. HAMILTON, Circuit Judge. In late 2020, the federal govern- ment implemented a vaccination program to immunize the public against the novel coronavirus, COVID-19. The govern- ment supplied private entities with vaccine doses and ancil- lary supplies at no cost, so long as the entities agreed to com- ply with the terms of a provider agreement. Among the items the government provided were COVID-19 vaccination record cards to be completed and given to each vaccine recipient. 2 No. 23-3366

During the pandemic, defendant-appellant Tangtang Zhao, a pharmacist employed at Walgreens, took blank vac- cination cards from his workplace and sold them on eBay.com for his personal benefit. Zhao was charged with and convicted on twelve counts of theft of government property in violation of 18 U.S.C. § 641. On appeal, he argues that the government presented insufficient evidence to prove that the vaccination cards were government property when he took them from his workplace. He also challenges the trial judge’s response to the jury’s question about the definition of government property and parts of the jury instructions. We affirm. To secure a conviction under section 641, the government had to prove that it maintained sufficient “super- vision and control” over the vaccination cards in Walgreens’ possession. See United States v. Wheadon, 794 F.2d 1277, 1283– 84 (7th Cir. 1986). The government presented evidence that it controlled the use and distribution of the cards, retained ac- cess to the cards for quality assurance purposes, and could terminate Walgreens’ participation in the vaccination pro- gram for failure to comply with the provider agreement. From that evidence, the jury could find that the government’s su- pervision and control over the vaccination cards was suffi- cient to retain their federal character. The trial court also did not err in denying Zhao’s motions for judgment of acquittal, in answering the jury’s question, or in instructing the jury. I. Factual and Procedural Background A. The COVID-19 Vaccination Program The evidence presented at trial established the facts as fol- lows. On January 31, 2020, the Secretary of the Department of Health and Human Services (HHS) declared a national public No. 23-3366 3

health emergency due to the spread of a novel coronavirus known as COVID-19. On March 13, 2020, the President de- clared a national emergency. During the ensuing months, the federal government worked with pharmaceutical and bio- technology companies to develop effective vaccines for COVID-19 with unprecedented speed. The 2023 Nobel Prize in Physiology or Medicine was awarded to Katalin Karikó and Drew Weissman for their discoveries that enabled the de- velopment of effective vaccines using messenger RNA mole- cules. The federal government raced to distribute the new vac- cines as widely and quickly as possible. The government dis- tributed the new vaccines at no cost to providers that enrolled in the Centers for Disease Control and Prevention’s (CDC) COVID-19 vaccination program. At the same time, the federal government contracted with a private company to procure and distribute “ancillary kits” that contained supplies needed to administer the vaccines. The ancillary kits were also pro- vided at no cost to providers authorized to distribute COVID- 19 vaccine doses. The kits included COVID-19 vaccination record cards. The CDC provided a template for the cards’ de- sign specifying their dimensions and contents. The cards fea- tured both HHS’s and the CDC’s official symbols. After the kits were assembled, they were shipped to authorized provid- ers. Pursuant to the procurement contract, the kits, including the vaccination cards, became the federal government’s prop- erty after the government was invoiced, and they remained government property throughout the shipping process. CDC entered into agreements to distribute the vaccine with certain large retail pharmacy corporations, including Walgreens. In January 2021, Walgreens began providing in- 4 No. 23-3366

store vaccinations pursuant to its agreement with the CDC. The agreement prohibited Walgreens from selling or seeking reimbursement for the vaccine and ancillary supplies. It re- quired Walgreens to give each vaccine recipient or his or her legal representative a completed vaccination card. The agree- ment also included a hyperlink to a page on the CDC’s web- site that provided updated guidance and required providers to “monitor such identified guidance for updates and comply with such updates.” B. Defendant’s Thefts and Sales of COVID-19 Vaccination Cards Between March 24 and April 13, 2021, defendant Zhao was employed as a pharmacist at a Walgreens administering the COVID-19 vaccines. During this period, he listed 658 COVID- 19 vaccination cards for sale on eBay. He sold 630 of those cards, raising the cards’ price over time from $7.99 each to a high of $10.99 per card. Zhao received at least $5,600 from sell- ing vaccination cards. Some of the people who bought a vac- cination card reported doing so out of fear that unvaccinated people might be arrested or that the vaccination cards might be necessary to obtain food. In the title of the eBay listings and in communications with potential purchasers, Zhao empha- sized the cards’ authenticity. eBay sent Zhao five notices that it had removed his listings because they violated eBay’s government items policy. Zhao’s account was eventually placed on a 10-day selling restriction. After a reporter contacted Zhao through his eBay account, Zhao stopped selling vaccination cards and told eBay users inquiring about additional vaccination cards that his account had been hacked. No. 23-3366 5

C. Criminal Proceedings A grand jury charged Zhao with twelve counts of theft of government property in violation of 18 U.S.C. § 641. 1 The case was tried to a jury. At the close of the government’s case, Zhao moved for a judgment of acquittal on all counts. He argued primarily that the government had not shown that the vac- cination cards were government property at the time he took them. The district court denied the motion, and the jury found Zhao guilty on all counts. After trial, Zhao renewed his motion for judgment of ac- quittal. The district court denied his motion. The court sen- tenced Zhao to a one-year term of probation and imposed a

1 18 U.S.C. § 641 reads as follows:

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