Los Angeles Doctor Acquitted on Charges of Conspiracy and Falsification of Records Relating to 2003 Liver Transplant

According to the Los Angeles Times, Dr. Richard R. Lopez, Jr., head of the liver transplant program at St. Vincent Medical Center in Los Angeles, was acquitted by a jury in the U.S. District Court for the Central District of California on Friday, on charges conspiracy, concealment of material fact and falsification of records. The charges related to a liver transplant in 2003. Dr. Lopez acknowledged that he was involved in a decision to give a liver intended for a patient to another patient more than 50 places down the transplant waiting list, which constituted a violation of transplant rules. The government charged Dr. Lopez with orchestrating a cover up of the violation. The liver was intended for a patient residing in Saudi Arabia, and was given to another patient residing in Saudi Arabia. Under the transplant rules, the organ should have been given to the next person on the list--a patient at the University of California, Los Angeles, Medical Center.

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St. Vincent initially reported the actual recipient of the liver to the United Network for Organ Sharing, a private, non-group contracted by the U.S. Department of Health and Human Services which oversees transplantation nationwide. Later the same day, the hospital's staff retracted the notification and incorrectly reported that the liver had gone to the individual which it had been offered to. The government alleged that St. Vincent continued to file false documents concerning the liver. The defense argued that Dr. Lopez had no knowledge of the falsification of the documents, and that Dr. Lopez was being made “a scapegoat for everything that was wrong at St. Vincent’s.”

St. Vincent has subsequently shut down its liver transplant program.

 

For serious criminal matters, contact the offices of Gillen Withers & Lake LLC in Savannah or Atlanta.

California Businessman Acquitted on Tax Charges; Did Not Review or Authorize Tax Filings Due to Kidnapping of Son

Earlier this month, as reported in the Wall Street Journal's MarketWatch, a Federal jury in the U.S. District Court for the Central District of California acquitted Howard H. Berger, a business consultant, on four criminal tax charges. The charges stemmed from Mr. Berger's alleged filing of 2006 personal and partnership tax returns allegedly claiming a false charitable donation of $1 million.

The defense at trial presented compelling evidence that Mr. Berger never personally reviewed or authorized his 2006 return. The compelling evidence was that, four days before the return was due in October of 2007, Mr. Berger's ex-wife kidnapped their 4 year-old son from his preschool and fled with the child to her native country of South Africa. Furthermore, this was not the first time the former Mrs. Berger had abducted the child--she had refused to return to the U.S. after taking the child to visit her family in 2005. It took Mr. Berger 8 months working with the U.S. State Department to obtain a court order for the return of his son. The defense furthermore undermined the testimony of IRS agents regarding alleged false statements by Mr. Berger regarding his access to the charity's bank accounts or statements.

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"Hero" or "Terrorist" Cuban Exile Luis Posada Carriles Feted in Miami Following Acquittal on 11 Counts; Deportation Sought by U.S. Government

Luis Posada Carriles was 30 years old at the time of the 1959 Cuban Revolution. He was sent to prison by the regime of Fidel Castro and subsequently sought asylum in Mexico. Posada then emigrated to the United States where he helped to organize President John F. Kennedy's and the CIA's failed 1961 Bay of Pigs invasion. He then returned to the U.S. where he became a 2nd Lieutenant in the U.S. Army and was active in the CIA's Operation 40--a guerilla force which operated covertly to overthrow the Castro regime. Posada also developed close ties to anti-Castro groups in the U.S., including the Cuban American National Foundation.

Eventually suspected by the CIA of alleged involvement in several bombing plots, Posada relocated to Venezuela in 1968. Carriles became a chief of operations for Venezuela's intelligence agencies. The CIA severed all ties with Posada in 1976, on suspicion that he was allegedly involved in cocaine trafficking. That same year, he was arrested in Venezuela for alleged involvement in the bombing of Cubana airlines flight 455, which killed all 73 people on board. He was acquitted in a trial in military court, however the verdict was overturned and Posada was retried in a civil court. He escaped from prison in Venezuela and sought asylum in Chile.

Posada was imprisoned in Chile until 1985, when he escaped from prison again, dressing as a priest. He fled to El Salvador, where he again became involved in U.S. activities in the region, helping to provide supplies to the Contra forces opposed to the Sandinista regime of Nicaragua for the administration of President Ronald Reagan. Following the Reagan administration, Posada became a security advisor to the Guatemalan government. He was shot in Guatemala City in 1990, upon information and belief by Cuban agents.

Posada was implicated in a series of bombings in Cuba in 1997 which killed a Canadian citizen and wounded 11 other people. He was arrested in Panama City in 2000 with 200 pounds of explosives which were allegedly to be used to assassinate Castro, who was to visit Panama for the first time since 1959. In 2004, Panamanian President Mireya Moscoso pardoned Posada and his alleged co-conspirators. Posada requested asylum in the United States in 2005, and he was detained by the Department of Homeland Security, which sought to deport him. He was released on bond in 2007, and was indicted on seven counts of alleged immigration fraud. In 2009, a grand jury in El Paso, Texas, issued a superseding indictment against Posada, charging him with 11 counts, including immigration fraud, obstruction of a terrorism investigation and terrorism charges relating to the 1997 Cuban bombings. As reported by the Miami Herald, Posada was tried in a 13 week trial in the Western District of Texas in 2010. The jury took 3 hours to find him not guilty on all charges. 

Last week, the 83 year-old Posada received a gala dinner in Miami by Cuban exile organizations including Alpha 66, intended to help defray his legal expenses. Posada's counsel stated that they believed that the jury was favorably disposed to Posada as a result of his military history. However, as a result of his 2004 Panamanian conviction, Posada is barred from seeking residency in the U.S. No other countries will accept Posada, however, besides Cuba and Venezuela, and the U.S. has refused to deport him to Cuba or Venezuela, citing concerns that he might be tortured. Venezuela has announced that it will re-file its petition to extradite Posada. Venezuelan President Hugo Chavez has called Posada the "biggest terrorist" on the continent, and Castro has denounced Posada as a "coward."

USA Today on Misconduct by Federal Prosecutors; AUSA in Senator Ted Stevens Prosecution Takes Life;

USA Today ran a lengthy piece on prosecutorial misconduct on September 22. The article states that, since 1997, federal courts have determined that Department of Justice attorneys violated laws or ethical rules in some 201 cases, including the duty expressed by Supreme Court Justice George Sutherland over 70 years ago in Berger v. United States, 295 U.S. 78 (1935);

The United States Attorney is the representative not of an ordinary party to a controversy, but of a sovereignty whose obligation to govern impartially is as compelling as its obligation to govern at all, and whose interest, therefore, in a criminal prosecution is not that it shall win a case, but that justice shall be done. As such, he is in a peculiar and very definite sense the servant of the law, the two-fold aim of which is that guilt shall not escape or innocence suffer. He may prosecute with earnestness and vigor -- indeed, he should do so. But, while he may strike hard blows, he is not at liberty to strike foul ones. It is as much his duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one.

Most of the cases of misconduct involved concealment of favorable or impeaching evidence from the defendant and presenting false testimony to the jury. In the cases found by the reporters as part of a six month investigation, the misconduct by the prosecution was so egregious that courts dismissed the charges against the defendants or overturned the defendants' convictions. The story states that investigations of prosecutorial misconduct by the Department of Justice prompted by complaints from judges rose to 61 last year, from 42 in 2001. The Department's Office of Professional Responsibility has reported that it has completed more than 750 investigations over the past decade, and that it has found intentional violations in 68 cases. Reporters found that only one prosecutor had been barred from practicing law, even temporarily, in the past 12 years. In one rare exception, in 2007 the Department prosecuted Richard Convertino, a former Assistant U.S. Attorney, for allegedly obstructing justice in his handling of a Detroit terrorism case. Convertino was acquitted.

The story cites the case of Nino Lyons, who was alleged to have been a drug trafficker, and allegations that prosecutors concealed evidence which would have discredited the witnesses against him, many of whom were incarcerated convicted felons. The prosecution was alleged to have withheld from Mr. Lyons' defense promises made to the witnesses to reduce their prison time, and the failure of one key witness to even identify Mr. Lyons. The concealed evidence came to light only after it was suggested in a government filing after Mr. Lyons had already been incarcerated for three years. The U.S. District Court for the Central District of Florida overturned Mr. Lyons' conviction and declared him innocent.  The ordeal also cost Mr. Lyons his home and his business. U.S. District Judge Gregory Presnell wrote in his order that prosecutors engaged in "a concerted campaign of prosecutorial abuse" including covering up evidence and letting felons lie to the jury. Judge Presnell further said that prosecutors "brazenly" defied court orders and presented witnesses who were "allowed, if not encouraged, to lie under oath." As small compensation, the Justice Department paid $150,000 of Mr. Lyons' legal bills in a confidential settlement. The story states that the Department of Justice has paid nearly $5.3 million in legal bills for wrongly accused defendants.

The article noted the heavy caseload and lack of supervision of many federal prosecutors as a possible causes of misconduct. In response to the article, Acting Deputy Attorney General Gary Grinder wrote a letter to the editor, which may be read here, in which he defended that the number of cases of prosecutorial misconduct is actually "minuscule," given the fact that the Department of Justice prosecuted more than 720,000 cases and more than 1 million defendants in the time period covered by the study, suggesting that serious prosecutorial misconduct only occurs in approximately 1 in 3,600 cases.

In related news, following the dismissal of the prosecution of late Alaska Senator Ted Stevens, the Department of Justice commenced an investigation of several Department attorneys for potential prosecutorial misconduct. Senator Stevens was killed in a plane crash on August 9, 2010. One of the attorneys under investigation was Assistant U.S. Attorney Nicholas A. Marsh. Marsh, aged 37, committed suicide late last month, as reported in the Louisville Courier-Journal.

U.S. District Judge Emmet Sullivan appointed a special prosecutor to investigate what he called the worst misconduct he had seen in nearly 25 years on the bench. Marsh's attorney issued statements to the media following his death that Marsh was fearful of the investigation preventing him from continuing to work at the Department of Justice, and indicated that Marsh and investigators were actually "on the verge of a successful resolution." The Department has expressed its condolences to Marsh's family, as does the Blog.

 

 

LAPD Officer Acquitted on Weapons Export Charges

It is a rather slow news day, so the Blog would like to take the opportunity to note that, earlier this month, a jury in the U.S. District Court for the Central District of California acquitted Los Angeles Police Department Officer Johnny Augustus Baltazar on charges of illegally exporting weapons and ammunition to the Central American nation of Belize, as reported in the L.A. Times. Baltazar was alleged to have purchased eight .40-caliber handguns, two 9-millimeter handguns and more than 1,500 rounds of ammunition from the LAPD police academy store for his Belize business, Elite Security. The guns and ammunition were shipped inside a safe, however the shipment was stopped by Belize officials who determined that the shipment was allegedly not in compliance with regulations banning the export of handguns larger than 9 mm. The officials sent the shipment back, and Baltazar planned to substitute smaller caliber guns for the larger caliber ones, however Immigration and Customs Enforcement agency discovered them and started an investigation.

Baltazar's counsel emphasized the confusing nature of export regulations to the jury at trial. He cited errors by the shipping company. He also argued that Baltazar was a law-abiding person merely looking to build a business in Belize for his retirement. A juror questioned following the verdict stated that he believed that Baltazar was merely following the advice of the shipping company. Baltazar remains an LAPD officer, however he has been on leave since the LAPD was notified of the investigation.

Judge Dismisses SEC Complaint, Drug Charges, Against Former Broadcom Executives in Case of Prosecutorial Misconduct

Yesterday, a federal judge dismissed alleged drug charges against Henry Nicholas, the former Chief Executive of Broadcom Corp., a manufacturer of integrated circuits for broadband communications. In a related civil action, the judge, U.S. District Judge Cormac Carney of the U.S. District Court for the Central District of California, also ordered the Securities and Exchange Commission to amend alleged fraud charges against Mr. Nicholas and other former Broadcom executives within seven days, stating that he found "serious problems of proof" with the SEC's complaint against the former executives and inquired as to what proof the SEC had against them, as reported by The National Law Journal. The court had previously dismissed the SEC's complaint without prejudice.

Last month, during the trial of Mr. Nicholas and former Broadcom Chief Financial Officer William Ruehle, the court had granted Nicholas' and other defendants' motions to dismiss charges of backdating stock options based on prosecutorial misconduct and entered judgments of acquittal. Judge Carney found that the government "distorted the truth-finding process" and infringed on the defendants' due process rights to a fair trial. The court also questioned the evidence supporting the charges, noting that there was "considerable debate" regarding certain accounting practices used by Broadcom and many other major companies, including Microsoft and Apple.

The defendants made their prosecutorial misconduct claims after the court granted immunity to former Broadcom executives David Dull and Henry Samueli at the request of counsel for Mr. Ruehle so that the witnesses would not refused to answer based upon their Fifth Amendment privilege against self incrimination. Mr. Ruehle wanted Mr. Dull and Mr. Samueli to testify in order to rebut the testimony of Nancy Tullos, former Broadcom Chief of Human Resources, a witness for the government who had pled guilty in 2007 to obstruction of justice charges. The court found that the prosecution had improperly influenced Dull's, Samueli's and Tullos' testimony. Judge Carney also reprimanded the government for leaking misleading information regarding the grand jury proceedings to the news media. It set a hearing for the government to show cause as to why the narcotics case against Mr. Nicholas should continue.

At trial, he court also set aside Mr. Samueli's plea of guilty to making alleged false statements to the SEC following his testimony in Mr. Ruehle's and Mr. Nicholas' trial, stating that he had difficulty finding how Mr. Samueli had committed any crime. Judge Carney found that the government had pressured Broadcom into terminating Mr. Samueli, calling the government's treatment of him "shameful."

The court furthermore criticized the government for leaving Mr. Dull "hanging in the wind" for two years, treating him as an alleged co-conspirator but not charging him. The prosecution had entered a nonprosecution agreement with Mr. Dull after threatening to charge him with perjury based upon statements which Mr. Dull intended to make in his testimony in the Ruehle/Nicholas trial.

The extensive allegations of prosecutorial misconduct in the case against Mr. Nicholas and the other defendants included an allegation by the defense that the government had used Mr. Nicholas' 13 year-old son to gather evidence against his father.


Defendant in Stock Option Backdating Case Requests Hearing Based on Prosecutorial Misconduct/Interference with Witnesses

As reported by Law.com, Bruce Karatz, Chief Executive Officers of KB Home, a home construction corporation based in Los Angeles, California, was indicted in the action of U.S. v. Nicholas, 2:09-cr-00203-ODW (C.D.Ca. 2009), on 20 counts of fraud for defrauding the company and its shareholders of millions of dollars in undisclosed backdated stock option over a period of seven years, and concealing the fraud from KB Home's  directors, compensation committee and shareholders. Karatz's trial in the U.S. District Court for the Central District of California is scheduled to begin on February 23.

Karatz's attorneys have requested a hearing regarding whether prosecutorial misconduct has tainted the government's case against Karatz. Karatz contends that two witnesses for the government--James Johnson, former Chairman of the Board of Directors' Compensation Committee for KB Home, and Gary Ray, former Vice President of Human Resources--initially believed that the stock options grant practice was lawful, but changed their position following contacts with the prosecution. Karatz's lawyers want to examine Johnson regarding why he denied allegedly defending KB Home's option granting process during an internal investigation by the company's outside counsel in his statements to prosecutors. 

The defense also wants to question Ray, who has pled guilty to obstruction of justice and is cooperating with the government, regarding why he had allegedly previously maintained that the process was "lawful and proper." Following is a link to

Karatz's Motion for Evidentiary Hearing Regarding Testimony of Crucial Witnesses

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Karatz's motion is based on an order in December by U.S. District Judge Cormac Carney in the action of U.S. v. Nicholas, SACR 08-00139 CJC (C.D.Ca. 2008), another backdating case, in which the Court dismissed the government's indictment against co-founder of Broadcom Corp., Henry Nicholas, and former Broadcom Chief Financial Officer William Ruehle, blasting the prosecution for "distorting the truth-finding process" by intimidating and improperly influencing key witnesses. Karatz also relies on the Ninth Circuit Court of Appeals' overturning last August of the conviction of former Chief Executive Officer for Brocade Communication Systems, Inc., Gregory Reyes, for backdating based on false statements by the prosecution in closing arguments that Brocade's finance department didn't know about backdating. A hearing on Karatz's motion has been scheduled for February 8.