Document ID: ./input/supremecourt_opinions/opinions/boundvolumes/529bv.pdf
Page Number: 745.0

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Unit: $U55

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670

FISCHER v. UNITED STATES

Opinion of the Court

tion which performed billing audits for health care organiza-
In 1993 petitioner, on QMC’s behalf, negotiated a $1.2
tions.
million loan from West Volusia Hospital Authority (WVHA),
a municipal agency responsible for operating two hospitals
located in West Volusia County, Florida. Both hospitals
participate in the Medicare program, and in 1993 WVHA
received between $10 and $15 million in Medicare funds.

A February 1994 audit of WVHA’s ﬁnancial affairs raised
questions about the QMC loan. An investigation revealed
QMC used the loan proceeds to repay creditors and to raise
the salaries of its ﬁve owner-employees, including petitioner.
It was determined that petitioner had arranged for QMC to
advance at least $100,000 to a private company owned by an
individual who had assisted QMC in securing a letter of
credit in connection with the WVHA loan. QMC, at peti-
tioner’s directive, also committed portions of the loan pro-
ceeds to speculative securities. These investments yielded
losses of almost $400,000. The investigation further uncov-
ered use of the loan proceeds to pay, through an intermediate
transfer, a $10,000 kickback to WVHA’s chief ﬁnancial ofﬁcer,
the individual with whom petitioner had negotiated the loan
in the ﬁrst instance. QMC defaulted on its obligation to
WVHA and ﬁled for bankruptcy.

In 1996 petitioner was indicted by a federal grand jury on
13 counts, including charges of defrauding an organization
which receives beneﬁts under a federal assistance program,
18 U. S. C. § 666(a)(1)(A), and of paying a kickback to one of
its agents, § 666(a)(2). A jury convicted petitioner on all
counts charged, and the District Court sentenced him to 65
imprisonment and a 3-year term of supervised
months’
release. Petitioner,
in addition, was ordered to pay $1.2
million in restitution.

On appeal petitioner argued that the Government failed to
prove WVHA, as the organization affected by his wrongdo-
ing, received “beneﬁts in excess of $10,000 under a Federal
program,” as required by 18 U. S. C. § 666(b). Rejecting the