United States of America v. Tran

Filing 8

TEMPORARY RESTRAINING ORDER granting 5 Motion for TRO. The United States shall promptly attempt to provide notice of this action and this Order to the Defendant. This temporary restraining order shall remain in force until the close of business on the 14th day of April, 2015, or at such later date as may be extended by the Court, or agreed upon by the parties. The Court will conduct a preliminary injunction hearing, the date and time to be set by further order. The parties shall contact the Court to set a date and time for the hearing, as necessary. Ordered by Judge John M. Gerrard this 31st day of March, 2015, at 4:45 p.m. (E-mailed to USA)(JAB)

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

4:15CV3036
FILED UNDER SEAL

SCOTT T. TRAN,
Defendant.
TEMPORARY RESTRAINING ORDER
On this 31st day of March 2015, at 4:45 p.m., upon consideration of Plaintiff
United States of America’s Emergency Ex Parte Motion for Temporary Restraining
Order and Preliminary Injunction and Brief in Support, pursuant to 18 U.S.C. §
1345, the Complaint filed by Plaintiff United States of America, and the Declaration
of Michael W. Maseth, the Court finds that the United States has demonstrated, by
a preponderance of the evidence,1 that:
1.

The Defendant Scott T. Tran is violating and unless enjoined will

continue to violate 18 U.S.C. § 1347 and has committed and unless enjoined would
continue to commit a Federal health care offense through the submission of false
and fraudulent claims to the Medicaid program;
2.

The Defendant is alienating or disposing of property, and intends 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; and
3.

The provision of advance notice to the Defendant will likely aggravate

the damage that this Order seeks to prevent because advance notice will provide the

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.
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Defendant with the opportunity to transfer, expend, or conceal the remaining
property.
Based on the foregoing, the Court hereby concludes as follows:
4.

That the requested relief be considered and GRANTED without prior

notice to the Defendant; and
5.

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 temporary restraining order in this case.
After consideration of the foregoing, it is therefore
ORDERED, ADJUDGED, and DECREED that the Defendant, his
respective owners, 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, 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, that are proceeds or profits from the Defendant’s
Federal health care offenses or property of an equivalent value of such proceeds or
profits, including but not limited to the following accounts:

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Bank Name
Wells Fargo

Account Holder

U.S. Bank NA

Tran Pharmacy Inc. dba
Pharmacy Specialty
Services
Tran Pharmacy Inc.
Business market Rate
Savings
Scott T. Tran

U.S. Bank NA

Scott T. Tran

Wells Fargo

3.

Account Number
Ending In
X6762
X1779
X3307
X1743

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, up to the equivalent value of the proceeds of the Federal health care fraud,
including but not limited to the following properties:
Owner
Scott Tran

Address
1725 N. 169th Street
Omaha, NE 68118

Assessed
Value
$209,000

IT IS FURTHER ORDERED that the Defendant, his respective owners,
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:
4.

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;
5.

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;

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IT IS FURTHER ORDERED that the Defendant, within one calendar week
of receiving notice of this Order:
6.

Provide to the United States the following:
a. a list of all post office boxes or other locations at which mail
addressed to the Defendant, Pharmacy Specialty Services, and/or
Tran Pharmacy, Inc. is received by or on behalf of the Defendant;
b. a list of all financial institutions, including but not limited to banks
and brokerage houses, at which there are now, or have been
maintained in the past three years, any savings, checking, money
market, investment, retirement, or any other kind of account or
other safe deposit box into which money has been deposited in the
Defendant’s name or in the names of any of his owners, agents,
employees, officers, persons acting in concert with him, or any
business names under which he operates including but not limited
to Pharmacy Specialty Services and Tran Pharmacy Inc., together
with the number or other designation of each such account or box;
c. a list of all financial institutions, including but not limited to, banks
and brokerage houses, at which there are now, or have been
maintained in the past three years, any savings, checking, money
market, investment, retirement, or any other kind of account or
other safe deposit box into which monies received in response to any
of the activities described in the United States’ complaint, have
been deposited, together with the number of such box or other
designation of each such account or box; and
d. the names, addresses, and telephone numbers of any individuals
who have received remuneration of any kind for assisting in recordkeeping, bookkeeping, accounting, brokering, or financial,
investment, or tax advice or consultation for the Defendant in the
past three years;

7.

Complete a Financial Disclosure Statement form provided by the

United States and, on a monthly basis, provide an accounting of his assets in a
suitable report detailing his financial condition.
IT IS FURTHER ORDERED that the United States shall promptly
attempt to provide notice of this action and this Order to the Defendant. 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.
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This temporary restraining order shall remain in force until the close of
business on the 14th day of April, 2015, or at such later date as may be extended by
the Court, or agreed upon by the parties.
The Court will conduct a preliminary injunction hearing, the date and time to
be set by further order. The parties shall contact the Court to set a date and time
for that hearing, as necessary.
ORDERED this 31st day of March, 2015.

BY THE COURT:

John M. Gerrard
United States District Judge

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