Argued: September 13, 2017
from the United States District Court for the Western
District of Virginia, at Abingdon. James P. Jones, District
Judge. (1:14-cr-00023-JPJ-PMS-1; 1:14-cr-00023-JPJ-PMS-2)
Michael John Khouri, LAW OFFICES OF MICHAEL KHOURI, Laguna
Hills, California; Nancy Combs Dickenson, OFFICE OF THE
FEDERAL PUBLIC DEFENDER, Abingdon, Virginia, for Appellants.
Marie Myatt, OFFICE OF THE UNITED STATES ATTORNEY, Abingdon,
Virginia, for Appellee.
W. Shelton, Federal Public Defender, OFFICE OF THE FEDERAL
PUBLIC DEFENDER, Roanoke, Virginia, for Appellant
D. Webb. Rick A. Mountcastle, Acting United States Attorney,
OFFICE OF THE UNITED STATES ATTORNEY, Roanoke, Virginia, for
MOTZ, DUNCAN, and WYNN, Circuit Judges.
GRIBBON MOTZ, Circuit Judge
bench trial, the district court found Beth Palin and Joseph
Webb (wife and husband) guilty of health care fraud and
conspiracy to engage in health care fraud, in violation of 18
U.S.C. §§ 1347 and 1349. Palin and Webb appeal,
principally contending the district court failed to apply the
correct standard of materiality and failed to find their
misrepresentations were material. For the reasons that
follow, we affirm.
a two-week trial, the district court considered numerous
documents and the testimony of more than twenty witnesses. We
briefly summarize that evidence.
owned Mountain Empire Medical Care ("MEMC"), an
addiction medicine clinic, and Bristol Laboratories
("the Lab"), which processed urine drug tests
ordered by MEMC doctors, among others. Webb assisted ...