Opinion ID: 626814
Heading Depth: 4
Heading Rank: 2

Heading: Dr. Margules's Role

Text: The plaintiffs have adequately alleged Dr. Margules's involvement in the operation or management of the enterprise. Reves v. Ernst & Young held that, although liability is not limited to upper management, a person can be liable under RICO only if he or she is part of the operation or management of the enterprise. 507 U.S. 170, 185, 113 S.Ct. 1163, 122 L.Ed.2d 525 (1993). The defendants in Reves were not part of the operation of the enterprise because they simply prepared standard financial statements based on information from management's accounting system. Id. at 186, 113 S.Ct. 1163. Dr. Margules, on the other hand, allegedly did more than participate in his  own affairs of evaluating medical conditions. Id. at 184-85, 113 S.Ct. 1163. According to the complaint, Dr. Margules's evaluations were not objective medical reports. Dr. Margules was a `cut off' doctor... upon whom Crawford and Cassens could rely for opinions which they could cite as grounds for cutting off or denying benefits. R. 1 (Compl. ¶ 6B). He allegedly fraudulently slanted his medical evaluations to serve the purposes of the enterprise, with the express or implied promise of future payment of money. Id. Therefore, the complaint adequately alleges that Dr. Margules was part of the operation or management of the enterprise.