In a 2-1 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan dismissed fraud and theft charges against former Deerfield Management Co partners Theodore Huber and Robert Olan, former U.S. Centers for Medicare and Medicaid Services employee Christopher Worrall, and David Blaszczak, the founder of political consulting firm Precipio Health Strategies.
It also set aside conspiracy convictions against Blaszczak, Huber and Olan and ordered further proceedings, saying it was unclear whether jurors convicted them for conduct that the government no longer considered criminal.Prosecutors said that in a scheme that ran from 2012 to 2014, Worrall tipped Blaszczak about upcoming CMS decisions, including plans to lower reimbursements for radiation cancer treatment and kidney dialysis.
The appeals court upheld the defendants' convictions in 2019, but the Supreme Court ordered a reconsideration after ruling in the so-called "Bridgegate" case. Citing that ruling, the 2nd Circuit said the leaked CMS information was not that agency's "property" or a "thing of value" to support the fraud and theft claims.
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