United States v. Williams

549 F. App'x 813
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 12, 2013
Docket19-7050
StatusUnpublished
Cited by2 cases

This text of 549 F. App'x 813 (United States v. Williams) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Williams, 549 F. App'x 813 (10th Cir. 2013).

Opinion

ORDER AND JUDGMENT *

MARY BECK BRISCOE, Chief Judge.

Zachary Carl Williams appeals his conviction for conspiracy to misbrand prescription drugs in violation of 21 U.S.C. §§ 331(a), 331(k), 333(a), and 18 U.S.C. § 371. Williams raises five issues on appeal. In his first two issues he alleges the indictment was constructively amended in violation of his constitutional rights. In his third and fourth issues he alleges the jury was improperly instructed. Finally, Williams argues that he is entitled to tribal sovereign immunity because his pharmacy operation was authorized by a license issued by the Ponca Tribe, a federally recognized tribe. Finding no error, we affirm Williams’ conviction.

I

A. Factual Background

This case arises out of Williams’ operation of White Eagle Pharmacy (“White Eagle”) on the Ponca Tribe reservation. In February 2009, Williams appeared before the Ponca Tribe Business Committee, the tribe’s governing body, to propose that his company operate a tribal-owned pharmacy on tribal land. In return, White Eagle would pay the Ponca Tribe fifty cents per prescription and hire tribal members as pharmacy employees. Williams suggested that the Committee pass a pharmacy act in order to issue pharmacy licenses, and he provided a proposed pharmacy act that he represented was similar to Oklahoma’s Pharmacy Act. Williams also told the Committee that a *815 licensed pharmacist would be on duty and physically present at White Eagle at all times.

On March 17, 2009, the Committee passed the Ponca Tribe Pharmacy Act. The Act prescribed that an “Advisory Board” would oversee enforcement of the Act and issue licenses. The Ponca Tribe never established an Advisory Board, however. On June 19, 2009, the Secretary Treasurer of the Business Committee met with Williams and gave Williams two licenses from the Ponca Tribe which purported to allow Williams to transfer prescription drugs from Seneca Cayuga tribal land to Ponca tribal land. 1 Both licenses were issued to “White Eagle Rx,” effective from June 19, 2009, to June 19, 2014. On June 19, 2009, the Ponca Tribe entered into a “Pharmacy Management and Administrative Services Agreement” with Williams’ company, Abaci Holdings, LLC. Under this Agreement, the Ponca Tribe owned the White Eagle Pharmacy, and Abaci Holdings was slated to manage and operate the pharmacy.

White Eagle was not a walk-in pharmacy, but rather is described as a “fulfillment” pharmacy. White Eagle contracted with companies, such as Health Solutions Network, LLC (“Health Solutions”), to fill batch prescriptions. Health Solutions operated a website where customers from different states completed online questionnaires detailing their ailments. A doctor in Puerto Rico would then review the questionnaire and “prescribe” drugs solely on that basis. Drugs were prescribed without the prescribing doctor’s physical examination of the patient, or even a conversation with the patient regarding the patient’s ailments. Williams filled these online prescription drug orders without the presence or authorization of a licensed pharmacist. Williams simply had employees count pills into bottles and then ship the filled bottles to customers. White Eagle filled up to 1,200 orders per day. The primary drugs ordered and shipped were Soma, Tramadol, and Fioricet, which are prescription pain relievers or muscle relaxers.

B. Procedural Background

Although Williams was initially indicted on seven counts on July 7, 2010, the grand jury subsequently issued a superseding indictment on December 8, 2010, charging Williams with the following six counts: Count 1 charged conspiracy to distribute Fioricet, 2 a controlled substance, in violation of 21 U.S.C. §§ 841(h)(1), 846; Count 2 charged conspiracy to misbrand the prescription drugs Fioricet, Soma, and Tra-madol, in violation of 21 U.S.C. §§ 831(a), 331(k), 333(a), and 18 U.S.C. § 371; and Counts 3 through 6 charged distribution and aiding and abetting distribution of Fioricet via Fed-Ex shipment, in violation of 21 U.S.C. § 841(a) and 18 U.S.C. § 2.

Williams filed a motion to dismiss. He argued that the district court lacked subject matter jurisdiction to prosecute federal crimes committed in Indian Country, and that he was immune from suit under tribal sovereign immunity. Williams also asserted broad international human rights and aboriginal rights arguments. After *816 conducting a hearing on Williams’ motion, the district court denied the motion.

A jury subsequently found Williams guilty on Count 2 of the superseding indictment (conspiracy to distribute mis-branded drugs in violation of the Food, Drug, and Cosmetic Act), and not guilty on the remaining counts. The district court sentenced Williams to a term of thirty-seven months’ imprisonment followed by two years of supervised release.

C. Statutory and Regulatory Background

1. The Food, Drug, and Cosmetic Act

The Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. § 301 et seq., outlaws drug misbranding. Under 21 U.S.C. § 381, it is unlawful to introduce, deliver, or receive in interstate commerce mis-branded drugs. 3 Under 21 U.S.C. § 352(f), a drug is “misbranded” if it does not bear “adequate directions for use.” FDA regulations define “adequate directions for use” as “directions under which the layman can use a drug safely and for the purposes for which it is intended.” 21 C.F.R. § 201.5.

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Cite This Page — Counsel Stack

Bluebook (online)
549 F. App'x 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-williams-ca10-2013.