Texas Pharmacy Owner’s Kickback Convictions Affirmed on Appeal

A Texas pharmacy owner lost his appeal to undo his convictions after the Fifth Circuit ruled that he carried the burden of establishing that the allegedly illegal kickbacks fell within a safe harbor.

Richard Hall argued that the jury instructions improperly placed the burden of persuasion of establishing the bona fide employee defense on him. But the appeals court said the lower court got it right.

The bona fide employee safe-harbor acknowledges that payments made within a legitimate employer-employee relationship aren’t covered by the Anti-Kickback Statute, even if they would otherwise be consdiered a prohibited payment.

“This is the hallmark ...