United States v. Tiffany Foster

Court of Appeals for the Eleventh Circuit·Decided January 8, 2019·No. 16-17347·Unpublished

Opinion

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 16-17347

D.C. Docket No. 1:14-cr-20323-CMA-4

UNITED STATES OF AMERICA, Plaintiff - Appellee,

versus

TIFFANY FOSTER, a.k.a. Tiffany Coleman, a.k.a. Tiffany Lee, a.k.a. Tiffany Smith, a.k.a. Tiffany Coleman Smith,

Defendant - Appellant.

Appeal from the United States District Court for the Southern District of Florida

(January 8, 2019)

Before MARTIN, JORDAN and WALKER, * Circuit Judges. PER CURIAM:

A jury convicted Tiffany Foster of charges involving patient recruiting and illegal kickbacks in a health-care fraud scheme. See 18 U.S.C. §§ 1349, 371. The district court granted her motion for judgment of acquittal, see Fed. R. Crim. P. 29(c), ruling that she had withdrawn from the scheme more than five years before the date of the indictment (which was in May of 2014). See United States v. Foster, 103 F.Supp.3d 1335, 1340-43 (S.D. Fla. 2015). The government appealed, and we reversed, holding that a reasonable jury could have found that Ms. Foster did not withdraw from the scheme more than five years prior to her indictment. See United States v. Foster, 668 F.App’x 881, 881-82 (11th Cir. 2016). On remand, the district court sentenced Ms. Foster to 97 months of imprisonment. See D.E. 508 at 2.

Ms. Foster now appeals her conviction. She argues that government counsel engaged in misconduct during his cross-examination of her only witness by referencing the convictions of co-defendants, implying knowledge of facts not in evidence, inserting his own personal opinion regarding the witness’ credibility, and placing the imprimatur of a federal judge on his personal evaluation of the witness.

*

Honorable John M. Walker, Jr., United States Circuit Judge for the Second Circuit, sitting by designation.

After review of the briefs and extensive trial record, and with the benefit of oral argument, we agree with Ms. Foster that government counsel improperly inserted his own personal opinion regarding the defense witness’ credibility into the proceedings, and improperly placed the imprimatur of a magistrate judge on his own personal evaluation of the witness. We conclude, however, that the error was not prejudicial to Ms. Foster given the witness’ limited testimony. As a result, we affirm.

I

Testimony at trial established that, to receive Medicare benefits for inpatient psychiatric services, beneficiaries must have a need for 24-hour medical supervision due to a mental disorder. See D.E. 351 at 196, 198-99. Medicare beneficiaries have a lifetime maximum of 190 days’ coverage for inpatient psychiatric services. See 42 C.F.R. § 409.62.

Hollywood Pavilion operated a facility that, among other things, billed Medicare for inpatient psychiatric services. Hollywood Pavilion and several of its high-level employees, including Chief Executive Officer Karen Kallen-Zury, engaged in a scheme to defraud Medicare by submitting bills for beneficiaries who did not satisfy the requirements for inpatient psychiatric services. Hollywood Pavilion relied on patient recruiters like Ms. Foster to illegally refer patients in exchange for money.

A

Ms. Foster does not challenge the sufficiency of the evidence demonstrating the charged offenses or conspiracies centering around Hollywood Pavilion. She also does not contest the evidence showing her membership in the charged schemes until September of 2005. See Br. for Appellant at 3.

The crucial jury issue in Ms. Foster’s case was whether she withdrew from the conspiracy before the five-year statute of limitations period. See 18 U.S.C. § 3282(a). In support of her withdrawal defense, Ms. Foster introduced evidence of conduct she claimed demonstrated withdrawal.

First, Ms. Foster resigned from Hollywood Pavilion on September 13, 2005, by faxing a letter of resignation to Ms. Kallen-Zury. The government tried to counter the resignation with evidence that Ms. Foster severed ties with Hollywood Pavilion because her pay was reduced and because she could make more money elsewhere.

Second, Ms. Foster elicited testimony from Andres Durango, an FBI special agent who testified for the government, about statements she made to federal authorities. Agent Durango testified that Ms. Foster disclosed the Hollywood Pavilion scheme to the FBI in March of 2009 during an interview. Agent Durango further testified that Ms. Foster informed him that Hollywood Pavilion had engaged in illegal conduct, including “recycling clients,” “assess[ing] the same person numerous times within a month,” “billing Medicare for services that [were] not

provided,” “threaten[ing] some clients of withholding their disability checks if they did not return within 30 days,” and providing improper brokerage contracts between Hollywood Pavilion and patient brokers. See D.E. 351 at 121-26. The government attempted to show that Ms. Foster did not provide the agents with any inculpatory statements and that she misled them in many ways.

Third, Ms. Foster called Aaron Danzig—who had already testified on behalf of a co-defendant—as her only witness. Mr. Danzig, an attorney in private practice, had been an Assistant U.S. Attorney. He and his firm had been retained to defend Hollywood Pavilion and Ms. Kallen-Zury against potential federal criminal charges. Mr. Danzig explained that his firm investigated the alleged Hollywood Pavilion kickback scheme and tried to convince government officials that criminal charges were inappropriate. Mr. Danzig testified that he called Ms. Foster in the fall of 2008 to request her assistance with his internal investigation. He recounted that Ms. Foster refused to assist him in any manner because she “hated Karen Kallen-Zury” and because “working for her was like Nightmare on Elm Street Part III.” D.E. 358 at 52.

B

On cross-examination, the prosecutor tried to impugn Mr. Danzig’s integrity and credibility in a number of ways. Because they bear on our analysis, we set out the prosecutor’s questions and Mr. Danzig’s answers in detail.

First, the prosecutor suggested through questions that Mr. Danzig had not told certain Hollywood Pavilion employees (as he was required to do) that he was representing the company and had improperly implied that he could and did represent them in an individual capacity. See id. at 56-64. Mr. Danzig said that he had told one employee (but not others) that he was representing the company and admitted that he had told at least one employee that he could represent her individually in responding to the FBI’s request for an interview. See id. at 59-63.

Second, the prosecutor suggested that Mr. Danzig had obstructed justice by telling a number of Hollywood Pavilion employees that they should not speak to the FBI. See id. at 59-62. Mr. Danzig denied doing any such thing, explaining that he told the employees that it was their decision as to whether to speak to the FBI. See id.

Third, the prosecutor suggested that Mr. Danzig had—in violation of the attorney-client privilege—improperly turned over to the Department of Justice statements that one Hollywood Pavilion employee (the one whom he told he could represent her individually) had made. Mr. Danzig admitted turning over some of the employee’s statements, but denied that he had violated the attorney-client privilege. See id. at 63-64.

Fourth, the prosecutor suggested that Mr. Danzig had been told by some witnesses that Hollywood Pavilion was paying recruiters to refer patients. Mr.

Danzig, however, denied that he had received such information, and rejected any accusation that he had written false reports of his interviews with witnesses. See id. at 65-66.

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