United States v. Virginia Dillard

505 F. App'x 516
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 20, 2012
Docket11-2368
StatusUnpublished
Cited by2 cases

This text of 505 F. App'x 516 (United States v. Virginia Dillard) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Virginia Dillard, 505 F. App'x 516 (6th Cir. 2012).

Opinion

OPINION

RONALD LEE GILMAN, Circuit Judge.

Virginia Dillard, who pleaded guilty to a drug-trafficking conspiracy, challenges her 112-month prison sentence. She claims that the district court used a speculative formula to calculate the amount of drugs attributable to her, resulting in an inappropriate offense-level calculation and an excessive term of imprisonment. For the reasons set forth below, we AFFIRM the judgment of the district court.

I. BACKGROUND

Gwendolyn Washington is a medical doctor previously practicing in Detroit. Virginia Dillard is Dr. Washington’s niece and was an employee in her office. Dr. Washington had a general practice, and many of her patients were Medicare beneficiaries. Federal agents, suspecting Dr. Washington of committing healthcare fraud, executed a search warrant at her office in January 2010. Medicare then ceased all payments to Dr. Washington for February and March 2010 and, beginning in April 2010, subjected her bills to heightened scrutiny. These changes resulted in a dramatic decline in Medicare payments to Dr. Washington.

To compensate for the medical practice’s declining fortunes, Dr. Washington and Dillard hatched a plan to sell prescription drugs on the street. Under this plan, Dr. Washington would write prescriptions— not requested by any patient — for powerful Schedule II painkillers. Dillard would then pick up the painkillers at pharmacies in Detroit and sell them on the street to drug dealers she knew. The scheme worked as planned. Dr. Washington began writing fake prescriptions for OxyCon-tin in February 2010. Around August 2010, when the manufacturer changed Ox-yContin’s formula to curtail its abuse, Dr. Washington switched to prescribing Opana ER, which is like OxyContin but twice as potent. And then, in December 2010, Dr. Washington began prescribing Roxicodone, which works much more quickly than the other two drugs. In making these changes, Dr. Washington apparently took her cues from Dillard, who was familiar with the demand on the street.

At the beginning of the scheme, Dr. Washington attempted to fill OxyContin prescriptions through the mail-order pharmacy MEDCO in addition to using Detroit-area pharmacies. But MEDCO’s investigators contacted several of Dr. Washington’s patients to verify the prescriptions. The patients told MEDCO that they had never been prescribed Oxy-Contin and had never even heard of the drug.

Suspecting wrongdoing, federal agents initiated surveillance of Dr. Washington in August 2010. The surveillance showed Dillard driving Dr. Washington’s car to various pharmacies in Detroit and filling prescriptions for Schedule II painkillers. *518 When picking up the medications, Dillard would falsely tell the pharmacists that she had patients in the car who were unable to walk in. Later surveillance showed Dillard making the pharmacy trips alone. On one occasion in February 2011, agents saw Dillard drive to a pharmacy, enter the pharmacy, exit with a white bag, drive to a residence, enter the residence, and emerge shortly afterwards without the white bag. Data from the Michigan Automated Prescription System (MAPS) revealed that three prescriptions of Opana ER by Dr. Washington, totaling 180 40-milligram tablets, were filled on that day. The data also revealed that no one at the residence visited by Dillard was prescribed controlled substances at the time.

Agents conducted surveillance on Dillard again in March 2011. They saw that Dillard and another person left the medical office in the morning and drove to Pickens Pharmacy. Dillard entered the pharmacy and exited shortly afterwards with a white bag. She then walked to a nearby liquor store, where she got into a waiting car. The agents followed the car and pulled it over. Dillard was found to have on her person 60 Opana PR pills, 90 Roxicodone pills, and six prescriptions written by Dr. Washington, including two for Roxicodone and two for Xanax.

Two days later, Dr. Washington confessed to participating in a drug-distribution conspiracy with Dillard. Dr. Washington admitted that, starting in February 2010, she would write prescriptions for painkillers and Dillard would fill the prescriptions and sell the drugs. For every OxyContin prescription that Dr. Washington wrote, the doctor would receive approximately $1,000 and Dillard would receive approximately $600.

Dillard confessed to the drug-distribution scheme in an interview with FBI agents later in March 2011. According to Dillard, Dr. Washington “had gone from a rich doctor to a broke doctor” after her difficulties with Medicare billing. She needed money, and she asked Dillard to help sell prescription narcotics. Dr. Washington knew that Dillard, a former drug addict and drug seller, would know people who were in the market for prescription drugs. Dillard stated that, in one transaction, she sold 90 80-milligram tablets of OxyContin for approximately $2,200, kept $800, and gave $1,400 to Dr. Washington. She also confessed to a similar transaction where she sold Opana ER for $2,000, kept $400, and gave $1,600 to Dr. Washington. Dillard knew that some of the people to whom she was selling drugs would turn around and sell the drugs to other people. She admitted that she would fill prescriptions at least once a week at Pickens and Focus Pharmacies, and that she sold prescription narcotics “roughly two to three times per week.”

In her FBI interview, Dillard named several people to whom she had sold drugs and several non-patients who had approached Dr. Washington for painkillers. She also said that Pickens Pharmacy was “crooked” and overbilled insurance companies. But she did not name any participants other than herself and Dr. Washington in the prescription and pickup end of the drug-distribution scheme. Nor did Dillard identify anyone other than herself who made the first sales (as opposed to subsequent resales) of the drugs.

The federal government brought a 81-count indictment against Dillard and Washington in April 2011. Dillard was charged with one count of conspiracy to possess with intent to distribute and conspiracy to distribute controlled substances, in violation of 21 U.S.C. § 846; five counts of possession with intent to distribute controlled substances and aiding and abetting in the same, in violation of 21 U.S.C. *519 § 841(a)(1) and 18 U.S.C. § 2; and one count of distribution of controlled substances and aiding and abetting in the same, in violation of 21 U.S.C. § 841(a)(1) and 18 U.S.C. § 2. In July 2011, Dillard pleaded guilty to all the charges pending against her without a plea agreement.

The Probation Department prepared a Presentence Report in September 2011, and the district court held a sentencing hearing in October. Aside from a number of objections to minor factual details that did not affect her sentence, Dillard’s only objection to the Presentence Report focused on the amount of drugs attributable to her. The Presentence Report noted that, according to the MAPS data, Dr.

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Cite This Page — Counsel Stack

Bluebook (online)
505 F. App'x 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-virginia-dillard-ca6-2012.