Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

Richard Hall and his partners established a pharmacy business to capitalize on the market for compounded drugs, targeting federal insurers for high reimbursements. They created two pharmacies, Rxpress and Xpress Compounding, to handle private and federal insurance claims, respectively. The business model involved paying marketers commissions to secure prescriptions from physicians, which led to over $59 million in federal healthcare reimbursements. Hall and his partners were indicted for conspiracy to defraud the United States, paying and receiving illegal kickbacks, and money laundering.The United States District Court for the Northern District of Texas tried the case. The jury found Hall guilty on multiple counts, including conspiracy to defraud the United States and paying illegal kickbacks. The district court sentenced Hall to 52 months in prison, three years of supervised release, and ordered him to pay over $59 million in restitution. Hall's motion for release pending appeal was denied by both the district court and the appellate court.The United States Court of Appeals for the Fifth Circuit reviewed the case. Hall raised four arguments on appeal: improper jury instructions regarding the burden of proof for the safe-harbor defense under the Anti-Kickback Statute (AKS), the definition of "employee" in the jury instructions, the exclusion of his proposed jury instruction on kickback recipients, and the imposition of restitution. The Fifth Circuit held that the district court correctly placed the burden of persuasion for the safe-harbor defense on Hall, properly defined "employee" in the jury instructions, and did not err in excluding Hall's proposed instruction on kickback recipients. The court also upheld the restitution order, finding it appropriate based on the total loss to the government. Consequently, the Fifth Circuit affirmed Hall's convictions and the district court's restitution order. View "United States v. Hall" on Justia Law

Scott Breimeister and four codefendants were tried for allegedly defrauding public and private healthcare programs of over $140 million through a scheme involving false claims for prescription drugs. During the trial, the Government made late disclosures of evidence favorable to the defense, affecting a significant portion of the testimony. The district court, concerned about the fairness of the trial, declared a mistrial sua sponte after determining that curative measures would not suffice to ensure a fair verdict.The United States District Court for the Southern District of Texas denied Breimeister's subsequent motion to bar retrial, finding that the Double Jeopardy Clause did not preclude a second trial because the mistrial was a "manifest necessity." Breimeister appealed this decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The appellate court held that Breimeister had impliedly consented to the mistrial by failing to object contemporaneously, and thus, the Double Jeopardy Clause did not bar retrial. Additionally, the court found that the district court did not abuse its discretion in declaring a mistrial due to manifest necessity, given the extensive impact of the Government's late disclosures on the trial's fairness. The appellate court concluded that the district court had carefully considered alternatives and acted within its discretion in declaring a mistrial. View "United States v. Breimeister" on Justia Law

A Texas state jury convicted Jesus Jaime Jimenez of organized crime involving violent robbery, and he was sentenced to 50 years in prison. Jimenez filed a federal habeas corpus petition, claiming his conviction was tainted by judicial bias due to the trial judge's relationship with the district attorney, who had misappropriated funds to pay for the judge's travel expenses.Jimenez first appealed his conviction through the Texas court system, where the Fourth Court of Appeals affirmed the jury's verdict, and the Texas Court of Criminal Appeals (TCCA) refused his petition for discretionary review. He then filed a state habeas corpus application, which was remanded by the TCCA to the trial court for findings on his claims of ineffective assistance of counsel, Brady violations, and judicial bias. The trial court rejected his claims, and the TCCA denied relief without a written order. Jimenez subsequently filed a federal habeas petition, which was initially denied as time-barred. However, the Fifth Circuit granted a certificate of appealability (COA), vacated the district court's decision, and remanded for further consideration. On remand, the district court again denied the petition as time-barred, but the Fifth Circuit found Jimenez entitled to equitable tolling and remanded for consideration on the merits. The district court ultimately denied relief on the merits, and Jimenez appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case and denied Jimenez's habeas relief. The court held that the state court's adjudication of Jimenez's judicial-bias claim was not contrary to, nor an unreasonable application of, clearly established federal law. The court found that the trial judge's actions, while inappropriate, did not demonstrate actual or presumptive bias against Jimenez. The Fifth Circuit also denied Jimenez's motion to expand the COA to include his ineffective assistance of counsel and Brady claims, concluding that the district court's resolution of these claims was not debatable among jurists of reason. The court affirmed the district court's judgment and denied habeas relief. View "Jimenez v. Guerrero" on Justia Law

Adam Earnest, Christopher Randell, and James Klish were involved in preparing and filing fraudulent tax returns through Sunbelt Tax Services, a company owned by Earnest. They falsely claimed millions of dollars in education credits for their clients. Previously, Earnest and Randell had worked at American Tax Service, where they engaged in similar fraudulent activities. Despite being audited and penalized by the IRS for these activities, they continued their fraudulent practices at Sunbelt. The IRS discovered that Sunbelt filed 4,509 tax returns claiming $4,899,653 in education credits without proper documentation.The defendants were charged in February 2022 with conspiracy to defraud the United States and assisting in the preparation of false tax returns. After a seven-day trial, a jury found Earnest, Randell, and Klish guilty of conspiracy, and Earnest and Randell were also found guilty of aiding and assisting in the preparation of false tax returns. The government estimated a total tax loss of $10,078,767, which included returns filed at both American and Sunbelt. The district court overruled objections to this calculation but conservatively estimated the loss to be between $3.5 million and $9.5 million. Earnest was sentenced to 100 months, Klish to 50 months, and Randell to 70 months in prison.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court's judgment, rejecting the defendants' arguments regarding the admission of evidence from their time at American, the summary chart exhibit, and claims of constructive amendment of the indictment. The court also found sufficient evidence to support Earnest's conviction for aiding and assisting in the preparation of a false tax return and upheld the district court's tax loss calculation and denial of a mitigating role reduction for Klish. View "United States v. Earnest" on Justia Law

In May 2019, Hezron Stuart committed two armed robberies at gas stations in Houston. He was indicted on two counts of Hobbs Act robbery and two counts of using a firearm during a crime of violence. While awaiting trial, Stuart assaulted a prison officer, leading to an additional indictment. The cases were consolidated and later transferred to Judge Rosenthal. During the trial, the jury was instructed on the charges, and the government presented evidence linking Stuart to the robberies, including testimony about a prior assault involving the same gun used in the robberies.The United States District Court for the Southern District of Texas initially joined the robbery and assault charges. During the trial, the court severed the assault charge, instructing the jury to disregard any mention of it. Stuart, representing himself, cross-examined witnesses and contested the identification evidence. The court limited his ability to question a witness about specific pending charges, which Stuart argued violated his confrontation rights.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the district court did not abuse its discretion in admitting testimony about the May 7 assault, as it was relevant to establishing Stuart's identity as the robber. The court also found no reversible error in the district court's and prosecutor's mention of the prison assault charge, as it was mitigated by the court's instructions to the jury. Additionally, the court ruled that Stuart's confrontation rights were not violated by limiting cross-examination about the witness's specific charges. Finally, the court determined that Stuart's right to a speedy trial was not violated, as the delays were largely attributable to his own actions. The Fifth Circuit affirmed the district court's judgment. View "USA v. Stuart" on Justia Law

In 2010, Thomas Steven Sanders kidnapped and murdered a twelve-year-old girl, L.R., after killing her mother, Suellen Roberts. Sanders was apprehended and confessed to the crimes. He was prosecuted under federal law and, in 2014, a jury in the Western District of Louisiana convicted him of kidnapping and murder, sentencing him to death on both counts.Sanders appealed, raising numerous challenges to his convictions and sentences. The United States Court of Appeals for the Fifth Circuit reviewed the case. Sanders argued that the district court erred by not ordering a competency hearing, denying his motion to suppress statements made during interrogation, and violating the Double Jeopardy Clause by imposing two sentences for one act. He also challenged the jury selection process, the death-qualification of the jury, the sufficiency of the evidence, the admission of victim impact testimony, prosecutorial misconduct, and the constitutionality of the Federal Death Penalty Act (FDPA).The Fifth Circuit found that the district court did not abuse its discretion in failing to order a competency hearing or in denying the motion to suppress. However, the court agreed with Sanders that his conviction and sentence under 18 U.S.C. § 924(c) and (j) violated the Double Jeopardy Clause, as Congress did not authorize cumulative punishment for violations of § 1201(a) and § 924(j). Consequently, the court vacated Sanders’s conviction and sentence under Count Two of the indictment.The court rejected Sanders’s other arguments, including those related to jury selection, death-qualification, sufficiency of the evidence, victim impact testimony, prosecutorial misconduct, and the constitutionality of the FDPA. The court concluded that Sanders’s sentences were not imposed under the influence of passion, prejudice, or any other arbitrary factor and that the cumulative-error doctrine did not apply. The Fifth Circuit affirmed the district court’s judgment in all other respects. View "United States v. Sanders" on Justia Law

Jeremy Jason Schnur, previously convicted of multiple felonies including aggravated battery, burglary, and robbery, was indicted for unlawfully possessing a firearm as a convicted felon under 18 U.S.C. § 922(g)(1). Schnur was apprehended by law enforcement at the Hard Rock Casino in Biloxi, Mississippi, where he was found in possession of a loaded Canik 9mm semiautomatic pistol. Schnur moved to dismiss the indictment, arguing that § 922(g)(1) violated his Second Amendment rights as applied to him. The district court denied his motion, and after a bench trial, found him guilty.The United States District Court for the Southern District of Mississippi denied Schnur's motion to dismiss the indictment. Schnur waived his right to a jury trial and proceeded to a bench trial based on stipulations regarding his possession of the firearm and his felony convictions. The district court found Schnur guilty and sentenced him to seventy-eight months of imprisonment, three years of supervised release, and a $3,000 fine. Schnur appealed the decision, maintaining his as-applied Second Amendment challenge.The United States Court of Appeals for the Fifth Circuit reviewed the constitutionality of § 922(g)(1) de novo. The court held that the Second Amendment's plain text covers Schnur's conduct, but the government demonstrated that disarming Schnur is consistent with the Nation's historical tradition of firearm regulation. The court cited precedents indicating that individuals with violent criminal histories, like Schnur's aggravated battery conviction, can be constitutionally disarmed. The court also referenced Schnur's robbery and burglary convictions, which further supported the constitutionality of § 922(g)(1) as applied to him. The Fifth Circuit affirmed the district court's judgment and upheld the constitutionality of § 922(g)(1) in Schnur's case. View "United States v. Schnur" on Justia Law

Trevor Dylan Lehew pleaded guilty to Aggravated Sexual Abuse of a Child under 18 U.S.C. § 2241(c). As part of his plea agreement, he waived his right to appeal, with certain exceptions. Lehew challenged a $5,000 special assessment imposed under the Justice for Victims of Trafficking Act, arguing that the appeal waiver did not apply because he was indigent and that the special assessment exceeded the statutory maximum.The United States District Court for the Western District of Texas accepted Lehew's guilty plea and sentenced him to 420 months of imprisonment, a $100 special assessment, the $5,000 JVTA special assessment, and supervised release. The court did not explicitly discuss Lehew's indigency during the sentencing hearing but adopted the presentence investigation report (PSR), which detailed Lehew's financial situation and potential future earnings.The United States Court of Appeals for the Fifth Circuit reviewed the case. Lehew argued that the district court erred by imposing the JVTA special assessment without determining his indigency and that his appeal waiver did not bar this challenge. The Fifth Circuit concluded that the appeal waiver barred Lehew's challenge. The court noted that the district court implicitly found Lehew to be non-indigent by adopting the PSR, which included information about his financial history and future earning potential. The court held that the district court conducted the requisite analysis by adopting the PSR and that Lehew's appeal waiver expressly waived any challenges to the determination of any monetary penalty or obligation.The Fifth Circuit affirmed the district court's judgment, concluding that Lehew could not appeal the JVTA special assessment as a sentence in excess of the statutory maximum and that his appeal waiver barred his appeal. View "United States v. Lehew" on Justia Law

Texas Game Warden Dustin Delgado arrested Joshua McClain for driving while intoxicated after observing his truck swerve and conducting field sobriety tests. McClain later sued Delgado for false arrest. The district court denied Delgado qualified immunity. However, because McClain did not carry his burden to show Delgado violated his constitutional rights, the United States Court of Appeals for the Fifth Circuit reversed the district court's decision.The United States District Court for the Western District of Texas initially reviewed the case. Delgado moved for summary judgment on both the false arrest and malicious prosecution claims, arguing that he was entitled to qualified immunity. The district court granted the motion for the malicious prosecution claim but denied it for the false arrest claim. Delgado appealed the denial of qualified immunity for the false arrest claim.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that Delgado had reasonable suspicion to stop McClain based on his swerving and probable cause to arrest him after observing clues of intoxication during field sobriety tests. The court found that McClain did not establish a genuine dispute of material fact regarding whether Delgado's conduct violated the Fourth Amendment. Consequently, the court reversed the district court's denial of Delgado's motion for summary judgment, granting Delgado qualified immunity. View "McClain v. Delgado" on Justia Law

Jessie Hoffman was convicted of first-degree murder for the kidnapping, rape, and murder of Mary "Molly" Elliot in 1998 and sentenced to death. After exhausting all state and federal post-conviction remedies, his execution was delayed due to the unavailability of lethal injection drugs. In 2024, Louisiana adopted nitrogen hypoxia as a method of execution. Hoffman challenged this new method, arguing it violated the Eighth Amendment.The United States District Court for the Middle District of Louisiana granted Hoffman's motion for a preliminary injunction, preventing his execution by nitrogen hypoxia. The court concluded that Hoffman had exhausted his administrative remedies under the Prison Litigation Reform Act (PLRA) and found that nitrogen hypoxia posed a substantial risk of superadding pain and suffering. The court suggested that execution by firing squad would be a reasonable alternative that would reduce the risk of severe pain.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that Hoffman had indeed exhausted his administrative remedies. However, it disagreed with the district court's conclusion regarding the Eighth Amendment. The Fifth Circuit held that nitrogen hypoxia is painless and that the district court erred in suggesting that the Eighth Amendment requires a more painful method of execution, such as a firing squad. The court emphasized that the Eighth Amendment does not guarantee a painless death and that Hoffman failed to show that nitrogen hypoxia presented a substantial risk of severe pain compared to other methods.The Fifth Circuit vacated the preliminary injunction, allowing Louisiana to proceed with Hoffman's execution by nitrogen hypoxia. View "Hoffman v. Westcott" on Justia Law