United States v. Philip Michael, II
United States v. Philip Michael, II
Opinion
What does it mean to "use[ ]" someone else's "means of identification"? 18 U.S.C. § 1028A(a)(1). The question arises in the context of an indictment alleging that Philip Michael used a doctor's means of identification (his name and identification number) and a patient's means of identification (his name and birth date) to request insurance reimbursement for a drug the doctor never prescribed and the patient never requested. Michael claims that the statute covers only impersonations, and he never impersonated anyone. Even if he fraudulently used a doctor's identification number and a patient's name, he says, he still submitted the reimbursement claim in his name. But the statute is not so confined, as the words of the provision and the cases interpreting it show.
I.
Michael worked as a licensed pharmacist at the Aracoma Pharmacy in Chapmanville, West Virginia. He separately co-owns another pharmacy in West Virginia and one in Pennsylvania. The government suspected that Michael used all three pharmacies to distribute on-demand prescription drugs, worth more than $4 million, over the Internet in violation of federal law.
A grand jury returned a multi-count indictment against Michael and several others for crimes arising out of the scheme. Two of the counts deserve mention. Count 7 charged him with committing health care fraud by "fraudulently submitt[ing] a claim for payment to Humana Insurance Company for dispensing medication ... which was never dispensed." R. 78 at 24;
see
The government alleged that, in September 2013, Michael submitted a claim for payment to Humana indicating that A.S. (a doctor) had prescribed the drug Lovaza for P.R. (a patient). The submission included the doctor's National Provider Identifier and the patient's name and birth date. A.S. was not P.R.'s doctor, however. In truth, A.S. did not issue this prescription for Lovaza, and P.R. did not ask Michael to fill a prescription for the drug. After discovering the fraudulent submission, Aracoma's management recalled the submission and fired Michael.
Before trial, Michael moved to dismiss Count 8. Even taking the government's allegations as true, he disclaimed "us[ing]" the "means of identification of another person" in violation of § 1028A. R. 71-1 at 1, 5. The statute requires a person to "assume the identity" of someone else, he
*626
insisted, while the government alleged only that he used the doctor and patient information while acting "under his own name as the dispensing pharmacist."
The government appealed.
II.
18 U.S.C. § 1028A(a)(1) is a sentencing provision. It imposes a mandatory two-year sentence for anyone who, "[i] during and in relation to any felony violation enumerated in subsection (c), [ii] knowingly transfers, possesses, or uses, [iii] without lawful authority, [iv] a means of identification of another person." No one disputes that health care fraud-alleged in Count 7 of the indictment-is a qualifying predicate felony "enumerated in subsection (c)."
See
18 U.S.C. §§ 1028A(c)(5), 1347 ;
United States v. Abdur-Rahman
,
That leaves this question: Did Michael "transfer[ ], possess[ ], or use [ ]" A.S. and P.R.'s "means of identification" even though he did not pretend to be them? 18 U.S.C. § 1028A(a)(1) (emphasis added).
"Use" has more than one meaning, and this is not the first time Congress has vexed the courts by using it.
See
Watson v. United States
,
Several cases adopt this meaning of "use" in construing criminal laws in a similar context.
See, e.g.
,
United States v. Castleman
, --- U.S. ----,
Measured by this reading of the statute, Michael's conduct violated it-or at least a jury could find he violated it. (We are at the indictment stage.) As alleged, Michael used A.S.'s ID number and P.R.'s name *627 when he created and submitted a fraudulent prescription order to obtain reimbursement money from Humana. That, it seems to us, represents a natural interpretation of the provision, and a fair application of it here.
Sometimes the object of a verb limits the meaning of the verb, it is true. Saying a person "uses drugs" might suggest in context that the verb means "to consume ... regularly." Webster's New International Dictionary 2524 (3d ed. 2002). Other examples abound of ways in which the object of "use" might change the meaning of use.
See, e.g.
, Oxford English Dictionary Online (3d ed. 2011) ("[t]o ingest or consume (
a medicine
) or avail oneself of (
a treatment
) in order to gain benefit");
Michael thinks that the statutory object of the sentence, using a "means of identification" for fraudulent purposes, does something similar: that it confines the coverage of the law only to impersonations. We don't see it. The provision increases the sentence for anyone convicted of health care fraud who "uses" the "means of identification" of someone else. 18 U.S.C. § 1028A(a)(1). That language no doubt covers impersonations, and impersonations may well have been one of the targets, perhaps even the principal target, of this sentencing-enhancement statute. But it is not unusual for the words of laws to go beyond the central, even the sole, motivation for enacting them. No matter what happened here, only the words of a law, not the motivations of its authors, may cabin (or for that matter extend) its reach.
See
Oncale v. Sundowner Offshore Servs., Inc.
,
The Supreme Court rejected a similar argument in another case about "uses."
See
Smith v. United States
,
Smith
was a strong candidate for allowing an object to limit its verb in that context, as the dissent pointed out.
See
Our precedent supports this interpretation. In
United States v. Miller
, we ruled for a defendant who argued that "uses" includes "act[ing] on [someone else's] behalf."
The definitions noted in Miller and Medlock cover the conduct alleged in this case. A jury readily could find that a pharmacist who files a claim with a patient's insurer to recoup costs the patient would otherwise have to pay "refer[s] to means of identification as such" and "acts on [that patient's] behalf." And White rejected a cramped reading of "uses," showing that it covers more than assuming another person's identity. Otherwise, that conviction would have been reversed, not affirmed.
Michael prefers another reading of these decisions. He points to
Miller
's statement that § 1028A does not cover "merely lying about what [other people] did" or did not do.
What of
Medlock
? The defendants operated an ambulance company and transported patients to hospitals for routine dialysis treatment.
Michael insists that the statute did not cover the conduct in Medlock because the defendants merely lied about "what they were entitled to," and he at most did the same thing here. Oral Arg. at 15:58-16:22. But that reality does not invariably free someone from coverage, as White illustrates. That defendant received something she and her clients were not entitled to-lower airfares-and yet we upheld that conviction.
When, then, is lying about what one is entitled to covered by the statute? And when not? The answer turns on causation, or at least causation often helps to answer the question. The salient point is whether the defendant used the means of identification to further or facilitate the health care fraud. Consistent with the words of the statute, the question is whether the defendant used the means of identification "during and in relation to" the predicate felony. 18 U.S.C. § 1028A(a)(1) ;
see also
Smith
,
*629
The defendants did not use patient names "during, in relation to, or for the purpose of helping to commit" that felony because they really did transport those patients.
Think of that distinction here. Had Michael, in the course of dispensing drugs to a patient under a doctor's prescription, only inflated the amount of drugs he dispensed, the means of identification of the doctor and patient would not have facilitated the fraud.
See
Michael also invokes § 1028A's title: "Aggravated identity theft." The title, we suppose, could suggest that "uses" refers only to scenarios in which a defendant assumes another's identity. But that is not the only way to construe it. Black's Law Dictionary defines "identity theft" as "[t]he unlawful taking and use of another person's identifying information for fraudulent purposes." Black's Law Dictionary 863 (10th ed. 2014). This definition says nothing about assuming another person's identity. More to the point is what the rest of § 1028A(a)(1) -its text rather than its title-says. "[T]he title of a statute and the heading of a section cannot limit the plain meaning of the text."
Bhd. of R.R. Trainmen v. Baltimore & O. R. Co.
,
Michael insists, last of all, that allowing § 1028A to reach more than passing oneself off as someone else will lead to limitless liability-in truth limitless sentencing enhancements. But the statute has other limits. The government must prove "that the defendant knew that the means of identification at issue belonged to another person."
Flores-Figueroa v. United States
,
We have nothing to say about whether the government will be able to make the requisite showings at trial. All that matters is that the indictment "contains the elements of the offense charged."
Hamling v. United States
,
We reverse the district court's decision and remand for proceedings consistent with this opinion.
Reference
- Full Case Name
- UNITED STATES of America, Plaintiff-Appellant, v. Philip E. MICHAEL, II, Defendant-Appellee.
- Cited By
- 21 cases
- Status
- Published