United States v. Thuna

382 F. Supp. 3d 166
CourtUnited States District Court
DecidedMay 28, 2019
DocketCriminal No. 18-487 (FAB)
StatusPublished

This text of 382 F. Supp. 3d 166 (United States v. Thuna) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Thuna, 382 F. Supp. 3d 166 (usdistct 2019).

Opinion

FRANCISCO A. BESOSA, UNITED STATES DISTRICT JUDGE

Eli Lilly and Company ("Lilly"), which is not a party here, requests that the Court enter an Order of Restitution directing defendant Martin Thuna ("Thuna") to pay Lilly $ 2,099,018.01 pursuant to 18 U.S.C. sections 3663(a)(2) ("Victim and Witness Protection Act," or "VWPA"), 3664, and 3771(e)(2)(A) ("Crime Victims' Rights Act," or "CVRA"). (Docket No. 23.) The United States and Thuna oppose Lilly's motion. (Docket Nos. 33 & 41.) For the reasons set forth below, the Court DENIES Lilly's motion for restitution. (Docket No. 23.)

I. Background

On August 8, 2018, Thuna pled guilty to a one-count information charging Introduction into Interstate Commerce of Misbranded Drugs with Intent to Defraud, in violation of 21 U.S.C. sections 331(a), 333(a)(2), and 352(a), with forfeiture provisions. (Docket Nos. 3 & 4.) According to the plea agreement:

During the period of January 2007 to May 2011, Martin Thuna caused [Droguería de la Villa, Inc. ("DDLV") ] to *169introduce and deliver for introduction into interstate commerce misbranded drugs, that is, wholesale shipments of prescriptions [sic] drugs with false labeling (pedigrees and transaction histories) in order to mislead and defraud the [Federal Food and Drug Administration ("FDA") ] of its lawful regulation of the legitimate drug supply chain. The prescription drugs distributed by DDLV in the manner stated above were in turn sold at retail level and paid in part by health care benefit programs. The parties have stipulated that for Sentencing Guideline purposes, the offense conduct caused a loss of more than $ 1,500,000.

(Docket No. 4 at p. 13.) The plea agreement stipulates that "the Court may impose restitution." Id. at p. 2. The plea agreement also states that "the parties [ ] agree that restitution is not proper in this case, since there are no readily identifiable consumers and health care benefit programs related to this offense." Id. at p. 2.

On December 11, 2018, Lilly requested that the Court recognize Lilly as a victim of Thuna's criminal conduct pursuant to the VWPA and the CVRA and award Lilly restitution. (Docket No. 23 at p. 1.) Lilly argues that Thuna "proximately harmed Lilly when he caused misbranded Lilly pharmaceuticals to be introduced into interstate commerce with the intent to defraud." Id. at p. 2. Lilly asserts that Thuna's conduct "undermined the image and brand name of Lilly, the trust doctors and patients place in those brands, and the legitimate efforts of Lilly to recoup its investment in life saving new drugs." Id. at p. 3. Lilly maintains that Thuna's conduct also "harmed Lilly by displacing sales of its legitimate products" and that Lilly's "lost wholesale sales total[ ] at least $ 2,099,018.01." Id.

II. Legal Standard

"Federal courts possess no inherent authority to order restitution, and may do so only as explicitly empowered by statute." United States v. Hensley, 91 F.3d 274, 276 (1st Cir. 1996) (citation omitted). Congress enacted the VWPA to ensure "that Federal crime victims receive the fullest possible restitution from criminal wrongdoers." Hughey v. United States, 495 U.S. 411, 420, 110 S.Ct. 1979, 109 L.Ed.2d 408 (1990) (internal citation and quotation marks omitted). Congress later enacted the CVRA, which guarantees federal crime victims "[t]he right to full and timely restitution as provided in law." 18 U.S.C. § 3771(a)(6).

Restitution rights pursuant to the VWPA and the CVRA "attach only if the claimant is a 'victim' under the VWPA, or a 'crime victim' under the CVRA." United States v. Credit Suisse AG, No. 14-188, 2014 WL 5026739, at *3 (E.D. Va. Sept. 29, 2014) (citing 18 U.S.C. §§ 3663(a)(2), 3771(e) ). The definition of "victim" pursuant to the VWPA and the definition of "crime victim" pursuant to the CVRA are "nearly identical." Id. According to the VWPA, a "victim" is "a person directly and proximately harmed as a result of the commission of an offense for which restitution may be ordered." 18 U.S.C. § 3663(a)(2).1

*170Similarly, the CVRA defines "crime victim" as "a person directly and proximately harmed as a result of the commission of a Federal offense or an offense in the District of Columbia." 18 U.S.C. § 3771(e)(2)(A).

Federal courts apply the same legal standard to the VWPA and the CVRA in determining a claimant's victim status. See, e.g., In re McNulty, 597 F.3d 344, 350 n.6 (6th Cir. 2010) ("[W]e find our case law construing the VWPA ... persuasive, both for how the CVRA is to be interpreted procedurally and for when an individual qualifies as a victim."); In re Rendon Galvis, 564 F.3d 170, 173-76 (2d Cir. 2009) (applying the same analysis to the VWPA and the CVRA in finding that the claimant was not a victim pursuant to the statutes); Credit Suisse AG, No. 14-188, 2014 WL 5026739

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Bluebook (online)
382 F. Supp. 3d 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-thuna-usdistct-2019.