United States v. Xiulu Ruan, No. 19-11508 (11th Cir. 2020)Annotate this Case
Defendants Ruan and Couch, pain management physicians, appealed their convictions for charges related to their involvement in a health care fraud scheme. Defendants were convicted of conspiring to run a medical practice constituting a racketeering enterprise in violation of the Racketeer Influenced and Corrupt Organizations Act; conspiring to violate the Controlled Substances Act by dispensing Schedule II drugs, fentanyl, and Schedule III drugs outside the usual course of professional practice and without a legitimate medical purpose; conspiracies to commit health care fraud and mail or wire fraud; and conspiracies to receive kickbacks in relation to a Federal health care program. Ruan and Couch were individually convicted of multiple counts of substantive drug distribution in violation of the Controlled Substances Act and Ruan was convicted of a money laundering conspiracy and two counts of substantive money laundering.
The court vacated defendants' convictions on Count 16 of the Superseding Indictment for conspiring to violate the Anti-Kickback statute based on their operation of their medical clinic’s in-house workers' compensation dispensary. In this case, the evidence was insufficient to establish beyond a reasonable doubt that an insurance provider paid for prescriptions with federal funds or that federal monies otherwise passed through the clinic's workers' compensation dispensary. The court remanded for resentencing and affirmed defendants' remaining convictions and sentences.
This opinion or order relates to an opinion or order originally issued on January 8, 2020.