United States v. Shoemaker

Tri-Lakes Medical Center (Tri-Lakes) was a community hospital in Mississippi. The chairman of Tri-Lakes’s board of trustees, David Chandler, and its COO, Raymond Shoemaker (defendant) were participants in a bribe and kickback scheme involving the hospital. Chandler agreed to direct nursing contracts to a nurse-staffing business owned by Garner (defendant) in exchange for $5 for every nursing-hour billed. Chandler earned his kickback by lobbying Shoemaker to increase contracts awarded to Garner’s company. At some point during the scheme, Chandler authorized a $50,000 raise for Shoemaker. Eventually, Tri-Lakes was sold, and Chandler left the board of Tri-Lakes. Shoemaker was promoted to CEO. After the sale of the hospital, Shoemaker met with Garner and Chandler to discuss Shoemaker’s compensation for participating in the scheme. Shoemaker and Chandler spoke privately. Then, Chandler relayed Shoemaker’s demands to Garner. Ultimately, Chandler, Shoemaker, and Garner came to an understanding that Chandler would pay Shoemaker $2,000 per month out of Chandler’s $5-per-hour kickbacks. Chandler paid Shoemaker $12,000 over six months. The government (plaintiff) charged Shoemaker and Garner in count four with conspiracy to violate 42 U.S.C. § 1320a-7b(b)(2) for the bribe and kickback scheme in addition to 11 other counts. A jury found Shoemaker and Garner guilty on all counts. Shoemaker and Garner filed motions for judgments of acquittal on all counts. The district court granted judgment of acquittal on count four because Chandler was not a relevant decision maker with authority of actual procurement of nursing staff, among other judgments of acquittal on some but not all counts. The government appealed.