FILED U.S. COURT OF AP P E A LS E LE V EN T HC IRC U IT MAY 15, 2008 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H]

I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 07- 10425 N on -A rgum entC al endar

________________________ D. C . Do c k e tNo . 0 6 - 2 0 3 6 2 - C V- F AM U N I T E D S T A T E S O F A M E R I C A , P la in tif f - A p p e lle e , v ersu s 1 0 1 5 0 NW 1 3 3 S T R E E T , HI AL E AH GA R DE NS , F L OR I DA , t oge the rw i th a l l appur t e na nc e s the r e t o a nd al l i m prov em ent s there on , and C ol on i al B a nk A c c ountN um be r8032896576, D e f e n d a n t, IS A B E L S A N T O S , and V anes saR od ri gu ez , the m i norgr a ndda ught e rof I s a be l S a nt os throu gh her m other, Is abel G uerr a, C la im a n t- A p p e lla n t.

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f orthe S outhe rn D i s tr i c tof F l or i da

_________________________ ( M ay 15, 2008)2

B efo re C A RN E S , H U L L an d P R Y O R , C i rcu i tJu d g es. P E R C U R I A M: T h is is Is ab el S an to s a n d h erm in o r g ra n d d au g h ter V an es sa R o d riq u ez ’s appe a l of the di s tr i c tc our t ’ s or de rof f or f e i tur e a ga i ns tS a nt os ’ hom e a nd the ba nk ac coun tow ned b y S ant os i n trustfor R od ri qu ez . I. I s a b e l G u e rr a , S a n to s ’ d a u g h te ra n d R o d r ig u e z ’s m o th e r , e n g a g e d in h e a lth ca re fr aud and vari ou s other c ri m es throu gh tw o com pani es she ow ned, O ce an M e di c a l S uppl i e s , I nc . a nd U ni t e d P ha r m a c y D i s c ount , I nc . O n M a r c h 30, 2001 S ant os bo ug htthe ho use thati s one of the obj ec t s of thi s f orfe i ture procee di ng . It c os t$390, 000, a nd the $206, 041. 26 tha tS a nt os pa i d up f r ontc a m e f

r om a ba nk ac coun tfund ed by O ce an and U ni t ed. T he re m ai nd erof the pu rc hase pri ce w as c ove r e d by a m or t ga ge on the pr ope r ty . B e tw e e n A pr i l 27, 2001 a nd A pr i l 28, 2002, S a nt os m a de he rm or t ga ge pa y m e nt s on the hous e — a t ot a l of $7 4, 32 2. 60

— fr om the sa m e a cc ou ntthatsupp l i ed the i ni t i al m on ey . S he l at er m a de a $1293. 55 pa y m e ntf r om a n a c c ountf

unde d s ol e l y by U ni t e d a nd a $22, 000 paym entfr om an O ce an corporat e a cc ou nt . T ho se tw o acc ou nt s w er e l at er f or f e i t e d be c a us e the y c ont a i ne d the pr oc e e ds of c r i m i na l a c t i vi ty . O n J une 3, 2002 S a nt os m a de the f i na l $102, 015. 56 pa y m e ntf r om the or i gi na l ba nk a c c ount3

o u t o f w h ic h h a d c o m e h e rin itia l $ 2 0 6 ,0 4 1 .2 6 p a y m e n t. O n A pr i l 25, 2004— one da y a f t e ra uthor i t i e s obt a i ne d s e a r c h w a rr a nt s f or G ue rr a ’ s tw o c om pa ni e s — S a nt os de pos i t e d a $105, 000 c a s hi e r ’ s c he c k i nt o the ba nk a c c ounttha ti s the othe robj e c tof thi s f or f e i tur e pr oc e e di ng. T he m one y f or the c a s hi e r ’ s c he c k c a m e f r om a n O c e a n a c c ounta ta nothe rba nk. G ue rr a ’ s i nvol ve m e ntw i th O c e a n a nd U ni t e d l e d t o he rc onvi c t i on on, a m o n g o th e rc h a r g e s , f

if te e n c o u n ts o f

h e a lth c a r e f

r a u d in v io la tio n o f

1 8 U .S .C . § 1 3 4 7 a n d o n e c o u n t o f

c o n s p ir a c y to v io la te th e a n ti- r e f e rr a l s ta tu te , 4 2 U .S .C . § 13 20 a- 7b (b)( 2)(A ). T he j ury a l so foun d b y aprepon dera nce of the evi dence that ni ne t e e n s pe c i f

i c a s s e t s of

G ue rr a ’ s w e r e s ubj e c tt o f or f e i tur e . A l though S a nt os w a s c ha r ge d w i th s truc tur i ng f i na nc i a l tr a ns a c t i ons f

orthe purpos e of

e va di ng r e por t i ng r e qui r e m e nt s i n vi ol a t i on of 18 U . S . C . § 371 a nd 31 U . S . C . §§ 5313 & 5324( a ) ( 3) be c a us e of

he ri nvol ve m e nti n O c e a n, the c our te nt e r e d a j udgm e ntof ac qu i tt al for herun der F eder al R ul e of C ri m i nal P roce du re 29 i nsofaras that c h a r g e w a s c o n c e rn e d . G ue rr a a nd he rtw o of

he rc o- de f

e nda nt s appe a l e d the i rc onvi c t i ons a nd s e n te n c e s . S e e U n ite d S ta te s v . M e d in a , 4 8 5 F .3 d 1 2 9 1 ( 1 1 th C ir . 2 0 0 7 ) . W e vaca t ed G uerr a’ s c on vi ct i on s on three of the heal th car e f raud coun t s bec ause , a l though s he vi ol a t e d the a nt i - r e f e rr a l s t a tut e by pa y i ng ki c kba c ks , thos e ki c kba c ks4

occurre d b ef

ore s he si gn ed her appl i ca t i on s t o b e aM edi ca re prov i der a nd so w er e nothe a l th c a r e f

r a ud. I d. a t1305. W e a f f i r m e d he rc onvi c t i ons ba s e d on the ki ckbacks s he pai d aft ersi gn i ng her app l i ca t i on s t o b e aM edi ca re prov i der, vaca t ed her s ent ence , and rem anded for res ent enci ng . Id. W hi l e G uerr a’ s app ea l w a s pe ndi ng, the gove rnm e ntbr oughtthi s i n r e m c i vi l f or f e i tur e pr oc e e di ng a ga i ns tS a nt os ’ hom e a nd the ba nk a c c ounts he he l d i n trus tf orR odr i gue z . S a nt os and R od ri gu ez op po se d the ac t i on and fi l ed cl ai m s on the prop erty. T he part i es fi l ed cr oss- m ot i on s f

or sum m ary j ud gm ent , and S ant os and R od ri gu ez al so m ov ed to ta k e th e c a s e o f

f o f th e tr ia l c a le n d a rp e n d in g th e r e s o lu tio n o f th o s e m o tio n s . T h e d is tr ic t c o u r t d e n ie d a ll o f th e m o tio n s . W hen i tbeca m e c l ea r thatthe ca se w as go i ng t o tri al , G uerr a a nd her f orm er s e c r e t a ry , I s a be l C a ne pa— both i n pr i s on a tthe t i m e be c a us e of the i ri nvol ve m e nt w i th O ce an—

j oi nt l y pet i t i on ed the courtfor w ri t s of habea s c orpu s a d t es t i fi ca nd um t o b e a l l ow ed t o t es t i fy atthe forf ei ture tri al . T he di stri ctcourt d e n i e d th e i rj o i n tp e t i t i o n a s u n t i m e l y b e c a u s e th e tr i a l wa s t o b e h e l d l e s s th a n two w ee ks l at er . B ef

ore tri al , bo th p art i es st i pu l at ed t o a j oi ntst at em entof un di sput ed f a c ts th a t in c lu d e d th e tr a n s c r ip ts o f G u e rr a ’s a n d S a n to s ’ tr ia l. A ft er h eari n g arg u m en t s b ased o n th e ev i d en ce i n th e reco rd an d th e p art i es’ s t i pul a t i ons , the di s tr i c tc our tf ound tha tthe gove rnm e ntha d m e ti t s bur de n of5

p ro v i n g b y a p rep o n d eran ce o f th e ev i d en ce th atth e m o n i es u sed t o p u rch ase S a nt os ’ hom e a nd ba nk a c c ountw e r e tr a c e a bl e t o he a l th c a r e f r a ud a nd e nt e r e d a j udgm e ntof

f or f e i tur e i n f

a vorof the gove rnm e nt . I n the c our s e of doi ng s o, the c o u r t f o u n d th a t S a n to s w a s in e lig ib le f o rth e in n o c e n t o w n e rd e f e n s e to f o r f e itu r e . S a n to s a n d R o d r ig u e z n o w ap p e a l. II. In an ap p ea l fro m an in re m civ il fo rf eitu re , w e r ev iew th e d istrict co u rt’s fi nd i ng s of f

ac ton l y f

or cl ea r e rr or and i t s c on cl usi on s of l aw de no vo . U ni t ed S t at es v. W atki ns, 32 0 F . 3d 12 79 , 12 81 (11t h C i r. 20 03 ). S a nt os a nd R odr i gue z f i r s tc ont e nd tha tthe di s tr i c tc our te rr e d i n or de r i ng thatthe ho use a nd bank ac coun tbe forf ei t ed because the go vernm ent ’ s f orfe i ture c om pl a i nts t a t e d tha tthe pr ope r ty w a s s ubj e c tt o f or f e i tur e a s the pr oc e e ds of heal th car e f

raud un der 18 U . S . C . § 1 34 7 and G uerr a onl y vi ol at ed the ant i -r ef erra l st atut e. T hi s a rgum entre l i es on a m i sund er st andi ng of ou r dec i si on i n the cr i m i nal appeal . W e hel d thaton ce G uerr a s i gn ed the appl i ca t i on t o b ec om e aM edi ca re p r o v id e rh e rs u b s e q u e n t v io la tio n s o f th e a n ti- r e f

e rr a l s ta tu te c o n s titu te d h e a lth c a r e f r a ud. M e di na , 485 F . 3d a t1298. S he s i gne d the appl i c a t i on f orU ni t e d on M ay 1 8 , 2 0 0 0 th e ap p l i cat i o n fo r O cean o n M ay 4 , 2 0 0 1 . Id . at1 2 9 5 . T h e h o u se pa y m e nt s m a de w i th m one y f r om G ue rr a ’ s c om pa ni e s s pa nne d the pe r i od f r om6

M ar ch 30 , 20 01 t o Jun e 3, 20 02 . T he bank ac coun tati ss ue i n thi s c as e w as fund ed on A pri l 25 , 20 04 . T here fore , du ri ng the peri od thatU ni t ed and O ce an fund s w er e bei ng used t o p ay for G uerr a’ s m other’ s hou se , G eurr a w as com m i tt i ng heal th car e f r a ud thr ough thos e c om pa ni e s . G ue rr a w a s s t i l l c om m i tt i ng he a l th c a r e f r a ud w h e n s h e d r e w a $ 1 0 5 ,0 0 0 c a s h ie r ’s c h e c ko n th e U n ite d a n d O c e a n a c c o u n t, w h ic h w a s f

u n d e d o n A p r il 2 5 , 2 0 0 4 , to g iv e to h e rm o th e ra n d d a u g h te r . S a n to s a n d R o d r ig u e z n e x t c o n te n d th a t th e d is tr ic t c o u r t e rr e d b y f a ilin g to honorthe pa r t i e s ’ s t i pul a t i on tha ta l l of the pr e s c r i pt i on m e di c a t i ons f i l l e d by U n ite d w e r e m e d ic a lly n e c e s s a ry a n d w e r e a c tu a lly d is p e n s e d to M e d ic a r e p a tie n ts . T he y a r gue tha tbe c a us e of thi s s t i pul a t i on the r e w a s no f r a ud a nd, the r e f

or e , the courterre d i n o rder i ng the forf ei ture. N oton l y w er e tho se fa ct s notst i pu l at ed, they w ou l d n otl ea d t o the concl usi on thatS ant os and R od ri gu ez re ac h anyw ay . E very t i me G u e rr a r e c e i v e d a p a y me n tf r o m M e d i c a r e f

o ra c l a i m th a tr e s u l t e d f r o m a k ic k b a c k , s h e c o m m itte d f r a u d b e c a u s e M e d ic a r e w o u ld n o t h a v e p a id th e c la im ha d i tknow n of

the ki c kba c k. S e e i d. a t1298. T he r e f or e , w he the rthe pres cr i pt i on s f

i l l ed by U ni t ed af

t erG uerr a s i gn ed the M edi ca re prov i der appl i c a t i on w e r e ne c e s s a ry ornoti s i rr e l e va nt . T he ki c kba c ks tha tl e d t o the cl ai m s m ade them fr audu l ent , so the m on ey pai d for the cl ai m s i s the proceeds of a cr i m e.7

S a nt os a nd R odr i gue z ’ s thi r d c ont e nt i on i s tha tthe di s tr i c tc our te rr e d by denyi ng G uerr a a nd C anepa’ s j oi ntappl i ca t i on for w ri t s of habea s c orpu s a d t e s t i f i c a ndum . W e w i l l notr e ve r s e a di s tr i c tc our tba s e d on i t s de ni a l of a w r i tof h ab ea s c o rp u s a d testifican d u m u n less th e a p p ellan t can sh o w th at “th e p riso n er ’s pr e s e nc e w oul d s ubs t a nt i a l l y f ur the rthe r e s ol ut i on of

the c a s e . ” U ni t e d S t a t e s v. W r i ght , 63 F . 3d 1067, 1071 ( 11th C i r . 1995) . T hi s r e qui r e s tha ta n appl i c a t i on f or the w r i tpr of

f e rthe s ubs t a nc e of

the pot e nt i a l w i tne s s ’ t e s t i m ony . I d. B e c a us e the ap p lic a tio n d id n o t c o n ta in a p r o f f e r , th e d is tr ic t c o u r t d id n o t e rrin d e n y in g it. F i na l l y , S a nt os a nd R odr i gue z c ont e nd tha tc ol l a t e r a l e s t oppe l pr e c l ude d the di s tr i c tc our tf

r om f i ndi ng tha tS a nt os w a s a w a r e of G ue rr a ’ s i l l e ga l a c t i vi t i e s a nd thus notpr ot e c t e d by the i nnoc e ntow ne rde f e ns e . B e c a us e S a nt os w a s a c qui tt e d of the c ha r ge s a ga i ns the ri n the c r i m i na l c a s e , S a nt os a nd R odr i gue z a s s e r ttha tthe fa ctshe di d n otkn ow of her daugh t er ’ s c ri m i nal ac t i vi t i es has a l re ady bee n litig a te d a n d th e r e s u lt w a s b in d in g o n th e d is tr ic t c o u r t. T h is a r g u m e n t is u n s o u n d . Se e O n e Lo tEme r a l d Cu tSt o n e s & O n e Ri n g v . U n i t e d St a t e s , 4 0 9 U . S. 232, 235, 93 S . C t . 489, 493 ( 1972) ( hol di ng tha ta c r i m i na l a c qui tt a l doe s notha ve c o l l a t e r a l e s t o p p e l e f

f e c to n a l a t e rc i v i l f

o r f e i tu r e p r o c e e d i n g b a s e d o n th e s a me cond uct ). Iti s a l so i rr el evant . T he di stri ctcourtas sum ed thatS ant os w as un aw ar e thatthe ho use a nd m on ey w er e tra ce abl e t o the proceeds of acr i m e. T he court8

n o n eth el ess fo u n d th atS an t o s w as i n el i g i b l e fo r th e i n n o cen to w n er d efen se because s he pai d n othi ng for the prop erty s ubj ec tt o forfe i ture a nd the prop erty w as tr a c e a b le to th e p r o c e e d s o f a c r im in a l o f

f e n s e . S e e 1 8 U .S .C . § 9 8 3 ( d ) ( 3 ) ( B ) ( iii) . S ant os and R od ri gu ez have fai l ed t o i dent i fy any l egal errors i n the di stri ct c our t ’ s or de r . T he r e c or d a m pl y s uppor t s the di s tr i c tc our t ’ s f i ndi ng tha tthe m one y us e d t o pur c ha s e S a nt os ’ hom e a nd the m one y de pos i t e d i n the ba nk a c c o u n t s h e h e ld in tru s t f o rR o d r ig u e z w a s tr a c e a b le to h e a lth c a r e f r a u d . AF F I RME D.