Opinion ID: 683222
Heading Depth: 2
Heading Rank: 1

Heading: District Court's Admission of Videotape

Text: 16 The first substantive issue presented for review is DeSalvo's contention that the District Court erred in admitting as evidence the promotional videotape she made after leaving HWC, which described her new business and her knowledge and proficiency in performing lost charge audits. DeSalvo claims that this videotape was not similar conduct within the meaning of Rule 404(b) of the Federal Rules of Evidence. In essence, she argues that since the promotional presentation itself was not illegal, it could not have been used as similar acts evidence to imply her previous knowledge that the Medicare claims she was submitting on behalf of Regency Hills were false. 17 In addition, DeSalvo maintains that the videotape should have been excluded under Rule 403 of the Federal Rules of Evidence because misrepresentations contained within it made the tape more prejudicial to her than it was probative on the issue of her knowledge. 18 In a written order the District Court specifically dismissed DeSalvo's evidentiary objections. On the Rule 404(b) similar acts objection, the Court found, In sum, the fact that DeSalvo continued to bill for non-surgical supplies after being accused of fraudulent billing and during the time in which she claimed extensive experience regarding Medicare billing makes it more likely that she knew she was fraudulently billing all along and intended to do so. As to DeSalvo's allegation that the videotape was unfairly prejudicial, the Court found that while such prejudice existed, it was within the scope of prejudice permitted by this Circuit and did not substantially outweigh the tape's probative value.
19 We review evidentiary questions for an abuse of trial court discretion. United States v. Hill, 953 F.2d 452, 455 (9th Cir.1991); United States v. Catabran, 836 F.2d 453, 456 (9th Cir.1988).
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21 Rule 404(b) character evidence objection. 22 Rule 404(b) of the Federal Rules of Evidence provides: 23 Evidence of other crimes, wrongs, or acts is not admissible to prove the character of a person in order to show action in conformity therewith. It may, however, be admissible for other purposes, such as proof of motive, opportunity, intent, preparation, plan, knowledge, identity or absence of mistake or accident.... 24 Fed.R.Evid. 404(b) (emphasis added). This Rule has been interpreted as one of inclusion and generally allows admission of other crimes or acts evidence  'except where it tends to prove criminal disposition.'  United States v. Ayers, 924 F.2d 1468, 1472-73 (9th Cir.1991) (quoting United States v. Rocha, 553 F.2d 615, 616 (9th Cir.1977)). This Court applies a four-part test to determine the admissibility of evidence under Rule 404(b): (1) there must be a sufficient degree of evidence for the jury to find that the other acts were in fact committed; (2) the other acts evidence may only be introduced to prove a material issue in the case; (3) the other acts must not be too remote in time to the conduct charged; and (4) the other acts must be sufficiently similar to the charged conduct when they are being introduced to show intent. Ayers, 924 F.2d at 1473 (citing United States v. Spillone, 879 F.2d 514, 518-20 (9th Cir.1989), cert. denied, 498 U.S. 878, 111 S.Ct. 210, 112 L.Ed.2d 170 (1990)). 25 In this case, the parties do not dispute that the first three elements of the Ayers test are met. On the first element, the promotional videotape itself provides sufficient evidence that the subsequent act was in fact committed. As to the second element (use of the subsequent acts evidence to prove a material issue) the videotape was admitted to show DeSalvo's knowledge that the Medicare claims she previously submitted were false, a necessary component of the crimes she was charged with. Again, this element is apparent and not challenged. The third element of the Ayers test, proximity in time, has also been met. The specific conduct on which DeSalvo was convicted (that is, the submission of false claims for Regency Hills) occurred in May and June of 1990, while the videotape was made during the summer of the following year. Under the circumstances, it cannot be said that the videotaped subsequent conduct was too remote in time. See Ayers, 924 F.2d at 1474 (finding that subsequent acts taking place over the course of two years after the charged crime were not too remote). 26 Therefore, the only ground for argument in this case involves the fourth element of the Ayers test: sufficient similarity between the subsequent acts and the conduct being charged. DeSalvo contends that the District Court erred in admitting the videotape because the conduct portrayed on the tape is not similar to the offenses charged in the indictment. Appellant's Brief at 20. She goes on to claim that [t]he promotional presentation was no more than advertising, as distinguished from the actual submission of claims to Medicare, and that therefore, admittedly false statements in the presentation went only to her character as a person who lies, rather than to her knowledge that past Medicare claims were fraudulent. Id. 27 An examination of the crimes DeSalvo was charged with reveals that her argument must fail. In overruling the objection on this issue, the trial court found that the distinction DeSalvo was trying to draw between the conduct charged and that exhibited on the videotape was without merit in lieu of the fact that she is simply charged with mischaracterizing and billing for nonsurgical dressings and bandages. 28 In essence, the ten counts of mail fraud brought against DeSalvo alleged her involvement in a scheme to convince medical care providers that they could reap substantial, no-risk rewards for subscribing to a lost charge Medicare audit. The focus of these charges was that DeSalvo knew that the lost charge Medicare claims she was submitting on behalf of providers were false. Since it was undeniable that false Medicare claims had been submitted, DeSalvo's primary defense was that she had no such knowledge that the claims were false. To establish knowledge, the Government introduced the videotape, which showed DeSalvo promoting a Medicare provider audit program mirroring the mail fraud scheme on which she was indicted. On the videotape, DeSalvo claimed knowledge and expertise in furnishing Medicare providers with substantial, no-risk benefits by subscribing to lost charge audit services. The videotape illustrated DeSalvo's promotion of and proficiency in lost charge audits, thus tending to show that when she previously submitted false Medicare claims, she knew them to be false. Similar cases have found applicability of Rule 404(b) in less persuasive circumstances. See United States v. McDonald, 576 F.2d 1350, 1356 (9th Cir.) (finding that developer's subsequent statements on land deals implied knowledge of previously fraudulent conduct), cert. denied, 439 U.S. 830, 99 S.Ct. 105, 58 L.Ed.2d 124 (1978); see also United States v. Bibo-Rodriguez, 922 F.2d 1398, 1399 (9th Cir.) (holding that despite differences in method, evidence of subsequent drug smuggling could be admitted to show prior knowledge and intent), cert. denied, 501 U.S. 1234, 111 S.Ct. 2861, 115 L.Ed.2d 1028 (1991). Therefore, DeSalvo's Rule 404(b) objection will be dismissed and the District Court's finding on this issue sustained. 29
30 unfair prejudice objection. 31 Rule 403 of the Federal Rules of Evidence provides that [a]lthough relevant, evidence may be excluded if its probative value is substantially outweighed by the danger of unfair prejudice.... Fed.R.Evid. 403. Rule 403 has been interpreted as a final check on the admission of extrinsic acts evidence, which may only be received if on balance, its probative value is not substantially outweighed by the danger of unfair prejudice to the defendant. United States v. Hodges, 770 F.2d 1475, 1479 (9th Cir.1985). 32 DeSalvo argues that admission of the videotape, including its undeniably false statements and misrepresentations, allowed her jury to draw the impermissible impression that because she lied on the tape, she was likely to have engaged in the fraud with which she was charged. This argument, however, is misplaced. As the Government's brief suggests, if anything, the false statements DeSalvo gives on the videotape make it more relevant to her knowledge that the past Medicare claims she submitted were false. That is, the fact that DeSalvo grossly misrepresented the details of the lost charge audit she was promoting on the tape goes to show her fraudulent intent underlying the audits themselves, exactly the point on which the Government claims the videotape is relevant. This additional relevance cannot be deemed a ground on which we could characterize the tape as showing unfair prejudice outweighing the videotape's probative value. See Hodges, 770 F.2d at 1479. Therefore, DeSalvo's Rule 403 objection shall likewise be dismissed, and the District Court's finding on this issue shall be sustained. 33