United States v. Yasmanny Benavides

470 F. App'x 782
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 24, 2012
Docket10-12363
StatusUnpublished
Cited by2 cases

This text of 470 F. App'x 782 (United States v. Yasmanny Benavides) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Yasmanny Benavides, 470 F. App'x 782 (11th Cir. 2012).

Opinions

PER CURIAM:

I. Introduction

Yasmanny Benavides appeals his conviction and sentencing on two counts of healthcare fraud and one count of conspiracy to commit the same. He alleges error on a number of rulings made by the district court. He also claims the court erred by applying to his sentence the four-level “organizer or leader” enhancement found in the Sentencing Guidelines. For the reasons discussed below, the district court’s decision is AFFIRMED.

II. Background

Miami was a hotbed for Medicare fraud in the early 2000s. One popular scheme involved forging prescriptions for expensive Durable Medical Equipment (DME), and then using an equipment company to invoice Medicare for reimbursement. To combat this epidemic, the FBI began a number of investigations in the Miami area. And these investigations bore fruit: the agency executed about 40 search warrants on August 18, 2004, including one to search All-Med Billing, a company that helped a number of DME companies commit fraud.

Against this backdrop, Reinaldo Guerra — the Government’s star witness against Benavides — ran more than 21 fraudulent DME companies. Guerra got his start in 2002, acting as the straw owner of Kathy Medical, a DME company engaged in billing Medicare fraudulently. Another man, Jose Luis Perez, had provided the purchase money for Kathy, handled all of the initial paperwork, and brought Guerra into the fold. Once in, Guerra cashed the Medicare checks sent to Kathy at Cash-flow Financial, a check-cashing outfit, and divided the profits with Perez after repaying him the initial purchase money. To protect Perez, only Guerra’s name appeared on Kathy’s paperwork. The duo eventually closed Kathy Medical, and Guerra graduated from his role as straw man, assuming ownership of two new companies. One of these was Lacary Medical, a company that Guerra had purchased at the suggestion of Greico Herrada.

It was at this point that Benavides entered the picture. Guerra and Herrada proposed that Benavides sign on as the nominal owner of Lacary, which required him to put his name on the paperwork closing the sale and the documents authorizing All-Med to do Lacary’s billing. In return, Benavides received 20% of the company’s profits.

Medicare eventually quit paying claims made by Lacary. At this point, Benavides asked Guerra to set up another DME company. According to Guerra’s testimony, [785]*785Erich Ruiz found Lily Orthopedic and agreed to sign on as nominal owner. Benavides and Guerra bought Lily for $90,000 on November 21, 2003, and they installed Ruiz as the strawman as planned. Ruiz, like Guerra and Benavides before him, signed the documents necessary for All-Med to handle the Medicare billing for Lily and for Cashflow to cash the Medicare checks obtained through the scheme.

All told, the trio bilked Medicare out of $4.7 million using Lily, a company that neither bought nor sold a single piece of medical equipment from December 2003 to August 2004, the time of the alleged conspiracy.

III. The Proceedings Below

This case began when the United States indicted Benavides and Ruiz on August 4, 2009. The indictment charged the pair with conspiracy to commit health care fraud (Count 1); three substantive counts of health care fraud (Counts 2-4); and-three counts of aggravated identity theft (Counts 5 — 7).1 Ruiz pled guilty; Benavides took his case to trial.

Just before trial, Benavides sought to keep evidence related to the Lacary fraud from coming into evidence. To this end, he filed a motion in limine, which the district court denied. The district court’s order also denied Benavides’ request to limit the scope of the evidence presented about Lacary. The court did however grant Benavides’ request for a standing objection to the admission of the Lacary evidence.

During the trial, Benavides objected to the Government’s attempt to introduce documents found during the FBI’s search of Cashflow. These documents — which ostensibly linked Benavides to Lily — were receipts with handwritten notations. Three of the receipts had written on them “Benabide (Lily Orthop.).” The other one read, “King (Lily orthopedic).” Benavides claimed the receipts were inadmissible hearsay and, either way, lacked sufficient authentication. The Government responded, claiming that Raul Martinez, a Cash-flow employee, wrote them, and that testimony by Rolf Gjertsen, an FBI agent, provided a sufficient foundation for admitting the receipts. The district court overruled Benavides’ objection and allowed in the evidence as a co-conspirator statement.

Benavides likewise objected to the Government’s use of summary charts in its case-in-chief. The objection had its genesis in the Government’s decision to call fourteen doctors who had their physician numbers used by either Lacary or Lily to submit false claims to Medicare. The Government had summary charts prepared so the doctors could easily identify the claims submitted under each doctor’s name and physician number. Because the title on each chart read “Lacary Medical Equipment/Lily Orthopedic,”2 Benavides objected and claimed that the charts would tend to mislead the jury by commingling the claims submitted by each company, thus conflating the two schemes. The district court overruled this objection too.

Guerra testified at length about his involvement in the Kathy, Lacary, and Lily schemes. During cross-examination, Benavides brought up the deal given to Guerra for testifying and established that Guerra sought to get his 14-year sentence reduced by up to a third because of his cooperation. The Sentencing Guidelines [786]*786calculation was important to the defense’s cross, because it showed that Guerra had something to gain from the Government by testifying. Confusion ensued after the prosecution’s redirect on the issue, and as a result, Benavides sought to recall Guerra after he had left the stand. The district court denied Benavides’ request.

Ruiz testified against Benavides at trial too. During his testimony, it came out that he had a prior conviction for selling prescription drugs illegally and for operating an illegal Internet pharmacy. Ruiz denied that his previous charges dealt with forging prescriptions, however, claiming that he merely continued working with a pharmacist whose license had expired. When Benavides attempted to cross Ruiz about the facts underlying his prior conviction, the prosecution objected. Benavides responded by claiming that he should get to inquire into the underlying facts of each crime “because the facts of his conviction are extremely relevant to the facts of this case.” (VIII Tr. at 149.) The district court disagreed and excluded the evidence because Benavides could not establish that Ruiz’s convictions had any connection to the case at hand.

Benavides testified as well. While on the stand, he admitted his involvement with Lacary, yet he maintained his innocence as to the Lily scheme. Benavides said that Herrada offered him a job with Lacary, telling Benavides that he would act as President of the company since Guerra wanted to keep his name off of any company documents. This prompted a hearsay objection by the Government. Benavides’ counsel responded by stating that Benavides knew the statements were false and that he did not want to offer them for the truth of the matter.

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470 F. App'x 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-yasmanny-benavides-ca11-2012.