Vakilian v. Shaw

335 F.3d 509
Court of Appeals for the Sixth Circuit·Decided July 2, 2003·No. Nos. 01-2377, 01-2443·Published·Cited by 154 cases

Opinion

OPINION

SILER, Circuit Judge.

In this interlocutory appeal, Defendant Wesley Shaw, Special Agent for the Michigan Attorney General’s Office, appeals the district court’s denial of absolute and qualified immunity regarding claims brought by the estate of Dr. Mohammad M. Vakilian pursuant to 42 U.S.C. §§ 1983 and 1985(3) for alleged violations of Vakilian’s constitutional rights during the state’s investigar tion and prosecution of him for Medicaid fraud. Vakilian-cross-appeals, requesting that we exercise our pendent appellate jurisdiction to reverse the district court’s order granting summary judgment in favor of Defendant Richard Koenigsknecht, Assistant Attorney General for the State of Michigan, based on absolute prosecuto-rial immunity. For the reasons stated below, we AFFIRM the denial of absolute immunity to Shaw. We also AFFIRM in part and REVERSE in part the district court’s decision denying him qualified immunity. With respect to the claims against Koenigsknecht, we choose to exercise our discretion to AFFIRM the grant of summary judgment on the Fourth Amendment claim, but decline to exercise pendent appellate jurisdiction to review the district court’s grant of summary judgment to Koenigsknecht on the § 1985(3) claim.

BACKGROUND

Following the dismissal of criminal charges, S.A. Vakilian, administrator of the estate of the late Mohammad M. Vakilian, M.D., sued Koenigsknecht and Shaw, seeking relief under 42 U.S.C. §§ 1983 and 1985(3) for alleged violations of Vakilian’s civil and constitutional rights during the state’s investigation and prosecution of him for Medicaid fraud. The complaint alleged that Koenigsknecht and Shaw conspired to violate Vakilian’s Fourth and Fourteenth Amendment rights by prosecuting him without probable cause and that the defendants’ actions were motivated by animus toward Vakilian because of his ethnicity or national origin.

In 1994, Shaw was assigned to a federal task force to investigate Vakilian’s employer, “Health Stop” medical clinics, for suspected Medicaid fraud. The task force executed search warrants for records and interviewed several patients, employees, and doctors-at all four Health Stop locations. The investigation ultimately revealed a system of illegal kickbacks to employee-physicians in the form of monthly bonuses that were based upon the number of medical tests ordered by the physicians. Several physicians admitted that they willingly participated in the scheme.

Although there was no direct evidence showing that Vakilian knew that he was receiving an illegal kickback, circumstantial evidence implicated his participation in the scheme. His employment' contract contained the same bonus provision as sev[514] eral individuals who admitted liability, and records established that his monthly bonuses were based upon the number of medical tests he ordered for his patients.

After reviewing this evidence, Koenig-sknecht authorized a complaint against Vakilian, along with several other physicians, charging them with multiple violations of the Michigan False Claims Act (MFCA), which makes it illegal to receive a kickback for ordering tests covered by Medicaid.1 Shaw then took the complaints to the state district court for the purpose of obtaining arrest warrants for all of the physicians. When testifying, Shaw told the judge that Vakilian “received additional money above what he’s supposed to get by [ordering] excessive amounts of tests,” and indicated that “[t]here was agreement between [Vakilian] and the owner, Dr. Baig, to [ ] perform these services and that he would receive money for his services.” Vakilian was subsequently charged and bound over for trial.

On November 17, 1997, the Wayne County Circuit Court reversed the finding of the district court and quashed the information. The Michigan Court of Appeals upheld the dismissal of the charges, citing a lack of evidence that Vakilian knowingly received a kickback, a necessary element of the charge. At the time Shaw testified before the district court, the MFCA did not contain an element of intent or knowledge. However, after Vakilian was charged, the Michigan Court of Appeals ruled that general intent was a requirement under the statute.

The estate subsequently filed this civil action pursuant to 42 U.S.C. § 1983, claiming that the defendants individually, and as part of a conspiracy, violated Vakiliaris Fourth Amendment rights by arresting and prosecuting him without probable cause. The theory of Vakiliaris case is that Shaw, on the advice of Koenigsknecht, knowingly gave false or misleading testimony to the judge in order to demonstrate probable cause for an arrest warrant. The complaint also alleges that the defendants’ actions were motivated by national origin discrimination, and the defendants are therefore liable under 42 U.S.C. § 1985(3) for conspiring to deprive Vakilian of equal protection of the law.2 Specifically, the estate argues that Vakilian, an American citizen who was born in Iran, was subjected to discriminatory treatment when the task force chose not to interview him, as they did other potential Anglo-American suspects, despite knowing that not all doctors who received the bonus were aware that it was derived from illegal means. The estate also cites evidence that ten [515] foreign-born, Asian physicians and one Jewish-American physician were prosecuted, whereas three white American, non-Jewish physicians, who admitted to participation in the illegal scheme, were not.

Koenigsknecht and Shaw filed a motion to dismiss and for summary judgment with supporting affidavits. Yakilian filed a response supported by documentation obtained from the earlier criminal case. The district court granted summary judgment to Koenigsknecht on all federal claims based upon absolute immunity. It declined to grant immunity to Shaw, however, on grounds that a factual dispute remained as to whether he acted with intent or discriminatory animus.

JURISDICTION

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Vakilian v. Shaw, 335 F.3d 509 (6th Cir. 2003).

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