Health Care Fraud and Forced Labor—Kaufman Conviction

Federal District Court Judge Monti Belot sentenced Arlan Kaufman to 30 years in prison for his health care fraud, Medicare fraud, forced labor, and involuntary servitude convictions.^[1] Mr. Kaufman’s wife, Linda Kaufman, was shown “some leniency,” receiving only 7 years because Judge Belot agreed with a psychiatrist “that she had a dependent personality and was manipulated by her husband.”^[2] We mentioned their convictions on November 9.

Judge Belot went so far as to call Mr. Kaufman an “arrogant individual” who doesn’t “recognize what [he has] done is wrong” because he saw himself “as a victim of some massive conspiracy.”^[3]

Sentencing Considerations for Mr. Kaufman
The base offense level for a forced labor offense is 22, which translates to 41-51 months in prison.^[4] If serious bodily injury occurs, the offense level is increased by 2 levels.^[5] If the use of a weapon was threatened, the offense level rises by 2,^[6] and if the person is held in captivity for more than a year, the level is raised by 3.^[7] If, as here, any other felony offense was committed during the commission of an involuntary servitude offense, the offense level can be increased by 2 plus the offense level applicable to the other offense, “but in no event greater than level 43.”^[8] Since fraud offenses have a minimum base offense level of 7,^[9] at this point, the defendant is looking at least an offense level of 38 (22+2+2+3+2+7), which translates to 235 to 293 months imprisonment. However, an even further upward departure may be warranted if “the offense involved the holding of more than ten victims in a condition of peonage or involuntary servitude.”^[10] Furthermore, there is the “vulnerable victim” enhancement, which raises the offense level by 4 if the defendant knew that a victim of the offense was a vulnerable victim and the offense involved a large number of these victims.^[11]

Sentencing Considerations for Mrs. Kaufman
Because Mrs. Kaufman was convicted of the same offenses as her husband, she could have been exposed to the same punishment. However, Judge Belot took relative pity on her, saying that he felt Mr. Kaufman was the dangerous one.^[12] Furthermore, there was the aforementioned psychiatric evaluation to consider, as well as the implication that Mrs. Kaufman may have attempted to plead guilty and receive only probation, but that plan was thwarted by her husband.^[13] She may have received a decrease in her offense level if she played a minimal or minor role in the offense.^[14] And while “[m]ental and emotional conditions” such as codependency, “are not ordinarily relevant in determining whether a departure is warranted,” they can be used as grounds for departure under the Guidelines section 5K2.^[15] If the defendant committed the offense because of serious coercion or duress, but not enough to establish a complete defense, the court can depart downward.^[16]

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[1] Roxana Hegeman, Couple Sentenced in Abuse of Patients, Associated Press (via Kansas City Star), Jan. 23, 2006.
[2] Id.
[3] Id.
[4] U.S. Sentencing Guidelines Manual § 2H4.1(a)(1).
[5] Id. § 2H4.1(b)(1)(B).
[6] Id. § 2H4.1(b)(2)(B).
[7] Id. § 2H4.1(b)(3)(A).
[8] Id. § 2H4.1(b)(4)(B).
[9] Id. § 2B1.1(a)(1).
[10] Id. § 2H4.1 n. 3.
[11] Id. § 3A1.1(b). A vulnerable victim is one who is unusually vulnerable due to age, physical or mental condition. Id. note 2(B).
[12] Hegeman, supra note 1.
[13] Id.
[14] U.S Sentencing Guidelines § 3B1.2.
[15] Id. § 5H1.3.
[16] Id. § 5K2.12.