United States of America v. Tran

Filing 14

ORDER AND PRELIMINARY INJUNCTION granting the parties' 13 JOINT MOTION for Preliminary Injunction. Because the United States' motion is based upon 18 U.S.C. § 1345, which expressly authorizes injunctive relief to protect the pub lic interest, no specific finding of irreparable harm is necessary, no showing of the inadequacy of other remedies at law is necessary, and no balancing of the interests of the parties is required prior to the issuance of a preliminary injunction in this case. Defendant Scott Tran, his agents, employees, attorneys, and all persons acting in concert and participation with him, including all banking and other financial institutions at which he does business, and all corporations over which he exercises control, who receive actual or constructive notice by personal service, by publication, or otherwise, be enjoined as set forth within the order. IT IS FURTHER ORDERED that within 14 days of the entry of this Order and every 14 days t hereafter, the pharmacy shall provide the government with an accounting of financial transactions through the Wells Fargo Pharmacy Account; IT IS FURTHER ORDERED that the Defendant, his agents, employees, attorneys, and all persons acting in conce rt and participation with him, including all banking and other financial institutions at which he does business, and all corporations over which he exercises control, are ordered as set forth within the order. IT IS FURTHER ORDERED that pursuant t o 18 U.S.C. § 1345(a)(3) and Rule 65(c) of the Federal Rules of Civil Procedure, Plaintiff United States of America shall not be required to post security for the instant action. This Preliminary Injunction shall remain in force until further Order of the Court, provided, however, that nothing in this Preliminary Injunction shall prevent (a) Defendant from surrendering to the United States any assets frozen by this Preliminary Injunction, if the United States consents to such voluntary surrender, or (b) any law enforcement officer from executing a warrant to seize property subject to forfeiture. Ordered by Judge John M. Gerrard. (MKR)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
UNITED STATES OF AMERICA,
Plaintiff,
vs.

4:15-CV-3036
ORDER AND PRELIMINARY
INJUNCTION

SCOTT T. TRAN,
Defendant.

This matter is before the Court on the parties' Joint Motion for
Preliminary Injunction (filing 13). Upon consideration of the record in this
case and the Court's previous orders (see filings 8 and 12), the Court finds
that the United States has demonstrated, by a preponderance of the
evidence,1 that:
1.

2.

1

The Defendant Scott T. Tran has violated and unless
enjoined could continue to violate 18 U.S.C. § 1347 and/or
has committed and unless enjoined could continue to
commit a Federal health care offense (as defined in 18
U.S.C. § 24(a)) through the submission of false and
fraudulent claims to the Medicaid program;
The Defendant has alienated or disposed of property, and
unless enjoined could continue to alienate or dispose of
property, obtained as a result of a Federal health care
offense, property which is traceable to such violation, or
property of equivalent value.

Courts are split on the proper standard of proof required before a § 1345 injunction may
issue, and the Eighth Circuit has not had occasion to resolve the issue. See United States v.
Ritchie Special Credit Investments, Ltd., 620 F.3d 824, 836 & n.5 (8th Cir. 2010). Some
courts require the government to make a probable cause showing that a predicate crime
under § 1345 is being committed. Others require a preponderance standard. See id. This
Court need not resolve the issue, as the injunction sought in this case is appropriate under
either standard.

Based on the foregoing, the Court hereby concludes that the requested
relief be GRANTED. Because the United States' motion is based upon 18
U.S.C. § 1345, which expressly authorizes injunctive relief to protect the
public interest, no specific finding of irreparable harm is necessary, no
showing of the inadequacy of other remedies at law is necessary, and no
balancing of the interests of the parties is required prior to the issuance of a
preliminary injunction in this case.
It is therefore ORDERED and ADJUDGED that:
Defendant Scott Tran, his agents, employees, attorneys, and all persons
acting in concert and participation with him, including all banking and other
financial institutions at which he does business, and all corporations over
which he exercises control, who receive actual or constructive notice by
personal service, by publication, or otherwise, be enjoined as follows:
1.

From making or submitting or conspiring to make or
submit any claims to the Medicaid program or any health
care benefit program, as defined in 18 U.S.C. § 24(b), in
violation of 18 U.S.C. § 1347, and from committing any
Federal health care offense, as defined in 18 U.S.C. § 24;

2.

From alienating, withdrawing, transferring, removing,
dissipating, or otherwise disposing of, in any manner, any
moneys or sums presently deposited, or held on behalf of
the Defendant by any financial institution, trust fund, or
other financial entity, public or private, including but not
limited to the following accounts:

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Bank Name Account Holder

Account
Number
Ending In
Wells Fargo Tran Pharmacy Inc. dba X6762
Pharmacy
Specialty
Services
Wells Fargo Tran
Pharmacy
Inc. X1779
Business market
Rate
Savings
U.S.
Bank Scott T. Tran
X3307
NA
U.S.
Bank Scott T. Tran
X1743
NA
FNB Omaha Scott T. and Judy J. Tran
X5758
FNB Omaha Scott T. and Judy J. Tran
X6320
TD
Scott T. Tran
X1083
Ameritrade
TD
Scott T. Tran
X0003
Ameritrade
FNB Omaha Scott, Judy and Nicholas X4820
A.
FNB Omaha Scott, Judy and Cameron X7220
M.
FNB Omaha Scott and Judy Tran
X3903
US Bank
Scott T. and Bryan Tran
X3221
3.

From alienating, withdrawing, transferring, removing,
dissipating, or otherwise disposing of, in any manner,
assets, real or personal (including, for example, real estate,
motor vehicles, boats and watercraft, jewelry, artwork,
antiques, household furniture and furnishings, etc.), in
which the Defendant has an interest including but not
limited to the following property:

Owner

Address

Scott Tran

1725 N. 169th Street
Omaha, NE 68118

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Assessed
Value
$209,000

IT IS FURTHER ORDERED that the restrictions stated above are
modified for the following bank account for the limited purposes described
below:
4.

Wells Fargo Account number ending in X7755
("Pharmacy Account"). Tran Pharmacy, Inc., d/b/a
Pharmacy Specialty Services (the "Pharmacy"), may receive
legitimate payments from private insurance providers and
individuals for legitimate pharmacy claims and may pay
legitimate operating expenses, including accounting
expenses, incurred by the Pharmacy in the ordinary course
of its business. Funds from the Pharmacy Account shall
not be transferred to Scott Tran, any of his family
members, or the attorneys or agents for Scott Tran, his
family, or the Pharmacy, except that such funds can be
used to pay the monthly salary of Judy Tran, not to exceed
three thousand five hundred ($3,500) dollars a month, and
her existing family health care and disability insurance;

IT IS FURTHER ORDERED that within 14 days of the entry of this
Order and every 14 days thereafter, the pharmacy shall provide the
government with an accounting of financial transactions through the Wells
Fargo Pharmacy Account;
IT IS FURTHER ORDERED that the Defendant, his agents,
employees, attorneys, and all persons acting in concert and participation with
him, including all banking and other financial institutions at which he does
business, and all corporations over which he exercises control, are ordered:
5.

To preserve all business, financial and accounting records,
including bank records, that detail any of the Defendant's
business operations and disposition of any payment that
directly or indirectly arose from the payment of money to
the Defendant on behalf of the Medicaid program;

6.

To preserve all medical records, including patient records
and prescriptions, that relate to the Defendant's business
operations and/or to services for which claims were
submitted to the Medicaid program; and

-4-

IT IS FURTHER ORDERED that pursuant to 18 U.S.C. § 1345(a)(3)
and Rule 65(c) of the Federal Rules of Civil Procedure, Plaintiff United States
of America shall not be required to post security for the instant action.
This Preliminary Injunction shall remain in force until further Order of
the Court, provided, however, that nothing in this Preliminary Injunction
shall prevent (a) Defendant from surrendering to the United States any
assets frozen by this Preliminary Injunction, if the United States consents to
such voluntary surrender, or (b) any law enforcement officer from executing a
warrant to seize property subject to forfeiture.
Dated this 28th day of April, 2015.
BY THE COURT:

John M. Gerrard
United States District Judge

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