Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 1 of 8
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`SOUTHERN DISTRICT OF MISSISSIPPE
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`PLEA AGREEMENT
`Criminal No. 2:20cr16-KS-MTP
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`Subject
`United States v. David “Jason” Rutland
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`Date
`June 28, 2021
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`To:
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`Graham P. Garner, Esq.
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`From:
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`Kathlyn R. Van Buskirk
`Assistant United States Attorney
`Southern District of Mississippi
`Criminal Division
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`David “Jason” Rutland, Defendant herein, and Graham P. Carrier, attorney for Defendant,
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`have been notified and understand and agree to the items contained herein, as well as in the Plea
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`Supplement, and that:
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`1.
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`Count of Conviction.
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`It is understood that. as of the date of this Plea
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`Agreement, Defendant and Defendant’s attorney have indicated that Defendant desires to plead
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`guilty to Count 2 of the indictment.
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`2.
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`Sentence.
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`(a)
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`Defendant understands that the penalty for the offense charged in Count two of
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`the indictment, charging a violation of 18 U.S.C. § 371, is not more than 5 years in prison; a term
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`of supervised release of not more than 3 years; a fine of up to $250,000; and a mandatory special
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`assessment in the amount of $100. Defendant further understands that if a term of supervised
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`release is imposed, that term will be in addition to any prison sentence Defendant receives;
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`further, if any of the terms of Defendant’s supervised release are violated, Defendant can be
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`returned to prison for the entire term of supervised release, without credit for any time already
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`served on the term of supervised release prior to Defendant's violation of those conditions.
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`(b)
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`The Defendant agrees to pay restitution for both the count of conviction and for
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`the dismissad counts, under the Mandatory Victim Restitution Act, 18 U.S.C. § 3663A, in the
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 2 of 8
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`total amount of at least $182,595,945 .07 to the health care benefit programs and/or pharmacy
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`benefit managers (PBM), in at least the following amounts to the following victims:
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`'
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`-
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`°
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`'
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`°
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`°
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`$47,360,64338 to CVS Caremark,
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`$10,689,206.l7 to Catamaran,
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`$7,864,435.49 to Opturn Rx,
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`$2,146,876.39 to Blue Cross Blue Shield Mississippi.
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`$1,576,104.61 to Blue Cross Blue Shield Massachusetts,
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`$1,314,63 9.94 to Prime Therapeutics,
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`$55,996,47925 to Express Scripts,
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`$4,117.62 to the United States Department of Labor, and
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`$55,643,44222 to the United States Defense Health Agency “TRICARE.”
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`Defendant further understands that if the Court orders Defendant to pay restitution, restitution
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`payments cannot be made to the victim directly but must be made to the Clerk of Court, Southern
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`District of Mississippi.
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`(c)
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`Defendant understands that an order of forfeiture will be entered by the Court as a
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`part of Defendant’s sentence and that such order is mandatory. The Defendant also
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`acknowledges that the forfeiture order will include provisions that, among other things:
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`(1) impose a money judgment of forfeiture in an amount equal to the gross proceeds that the
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`Defendant personally obtained or received, directly or indirectly, as a result of the conspiracy to
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`defraud the United States and conspiracy to solicit and receive kickbacks offense to which
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`Defendant is pleading guilty and (2) forfeit property items, real or personal, that constitute or that
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`were derived, directly or indirectly, from gross proceeds traceable to the commission of the
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`Defendant’s offense.
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21' Page 3 of 8
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`3.
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`Determination of Sentencing Guidelines.
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`It is further understood that the
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`United States Sentencing Guidelines are advisory only and that Defendant and Defendant’s
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`attorneys have discussed the fact that the Court must review the Guidelines in teaching a
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`decision as to the appropriate sentence in this case, but the Court may impose a sentence other
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`than that indicated by the Guidelines if the Court fmds that another sentence would be more
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`appropriate. Defendant specifically acknowledges that Defendant is not relying upon anyone's
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`calculation of a particular Guideline range for the offense to which Defendant is entering this
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`plea, and recognizes that the Court will make the final determination of the sentence and that
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`Defendant may be sentenced up to the maximum penalties set forth above.
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`4.
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`Breach of This Agreement and Further Crimes.
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`It is further understood that
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`should Defendant fail or refllse as to any part of this Plea Agreement or commit any further
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`crimes, then, at its discretion, the US. Attorney may treat such conduct as a breach of this Plea
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`Agreement and Defendant‘s breach shall be considered sufficient grounds for the pursuit of any
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`prosecutions which the US. Attorney has not sought as a result of this Plea Agreement,
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`including any such prosecutions that might have been dismissed or otherwise barred by the
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`Double Jeopardy Clause, and any federal criminal violation of which this office has knowledge.
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`5.
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`Financial Obligations.
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`It is further understood and specifically agreed to by
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`Defendant that, at the time of the execution of this document or at the time the plea is entered,
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`Defendant will then and there pay over the special assessment of $100.00 per count required by
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`Title 18, United States Code, Section 3013, to the Office of the United States District Court
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`Clerk; Defendant shall thereafter produce proof of payment to the U.S. Attorney or the US.
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`Probation Office. If the Defendant is adjudged to be indigent, payment of the Special assessment
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`at the time the plea is entered is waived, but Defendant agrees that it may be made payable first
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 4 of 8
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`from any funds available to Defendant while Defendant is incarcerated. Defendant understands
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`and agrees that, pursuant to Title 18, United States Code, Section 36} 3, Whatever monetary
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`penalties are imposed by the Court will be due and payable immediately and subject to
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`immediate enforcement by the United States as provided in Section 3613. Furthermore,
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`Defendant agrees to complete a Department of Justice Financial Statement no later than the day
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`the guilty plea is entered and provide same Financial Statement to the undersigned AUSA.
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`Defendant also agrees to provide all of Defendant’s financial information to the Probation Office
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`and, if requested, to participate in a pro-sentencing debtor’s examination. If the Court imposes a
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`schedule of payments, Defendant understands that the schedule of payments is merely a
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`minimum schedule of payments and not the only method, nor a limitation on the methods,
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`available to the United States to enforce the judgment. If Defendant is incarcerated, Defendant
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`agrees to participate in the Bureau of Prisons” Inmate Financial Responsibility Program
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`regardless of whether the Court specifically directs participation or imposes a schedule of
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`payments. Defendant understands and agrees that Defendant shall participate in the Treasmy
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`Offset Program until any and all monetary penalties are satisfied and paid in full by Defendant.
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`6.
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`Transferring and Lignidating Assets. Defendant understands and agrees that
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`Defendant is prohibited from transferring or liquidating any and all assets held or owned by
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`Defendant as of the date this Plea Agreement is signed. Defendant must obtain prior written
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`approval from the US. Attorney‘s Financial Litigation Unit prior to the transfer or liquidation of
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`any and all assets after this Plea Agreement is signed and if Defendant fails to do so the
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`Defendant understands and agrees that an unapproved transfer or liquidation of any asset shall be
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`deemed a fraudulent transfer or liquidation.
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`7.
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`Future Direct Contact With Defendant. Defendant and Defendant’s attorneys
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 5 of 8
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`acknowledge that if forfeiture, restitution, a fine, or Special assessment or any combination of
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`forfeiture, restitution, fine, and special assessment is ordered in Defendant’s case that this will
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`require regular contact with Defendant during any period of incarceration, probation, and
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`supervised release. Further, Defendant and Defendant’s attorneys understand that it is essential
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`that defense counsel contact the US. Attorney’s Financial Litigation Unit immediately after
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`sentencing in this case to confirm in writing whether defense counsel will continue to represent
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`Defendant in this case and in matters involving the collection of the financial obligations
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`imposed by the Court. If the US. Attorney does not receive any written acknowledgment from
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`defense counsel within two weeks from the date of the entry of Judgment in this case, the US.
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`Attorney will presume defense counsel no longer represents Defendant and the Financial
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`Litigation Unit will communicate directly with Defendant regarding collection of the financial
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`obligations imposed by the Court. Defendant and Defendant’s attorneys understand and agree
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`that such direct contact with Defendant shall not be deemed an improper ex parte contact with
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`Defendant if defense counsel fails to notify the US. Attorney of any continued legal
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`representation within two weeks after the date of entry of the Judgment in this case.
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`8.
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`Waivers. Defendant, knowing and understanding all of the matters aforesaid,
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`including the maximum possible penalty that could be imposed, and being advised of
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`Defendant's rights to remain silent, to trial by jury, to be represented by counsel at trial and at
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`every other stage of the proceeding, to subpoena Witnesses on Defendant’s own behalf, to
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`confront the witnesses against Defendant, to confront and cross examine the witnesses against
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`Defendant, to testify and present evidence, and to appeal the conviction and sentence, in
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`exchange for the US. Attorney entering into this Plea Agreement and accompanying Plea
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`Supplement, hereby expressly waives the following rights:
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 6 of 8
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`a.
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`The right to appeal the conviction and sentence imposed in this case, or
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`the manner in which that sentence was imposed, on the grounds set forth in Title 18, United
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`States Code, Section 3742, or on any ground whatsoever.
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`b.
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`The right to contest the conviction and sentence or the manner in which
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`the sentence was imposed in any post-conviction proceeding, on any ground whatsoever,
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`including but not limited to a motion brought under Title 28, United States Code, Sectiori 2255,
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`and any type of proceeding claiming double jeopardy or excessive penalty as a result of any
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`forfeiture ordered or to be ordered in this case.
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`c.
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`Any right to seek attorney fees and/01' costs under the Hyde Amendment,
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`Title 18, United States Code, Section 3006A, and the Defendant acknowledges that the
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`government’s position in the instant prosecution was not vexatious, frivolous, or in bad faith.
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`d.
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`All rights, whether asserted directly or by a representative, to request or
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`receive from any department or agency of the United States any records pertaining to the
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`investigation or prosecution of this case, including without limitation any records that may be
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`sought by Defendant or by Defendant’s representative under the Freedom of Information Act, set
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`forth at Title 5, United States Code, Section 552, or the Privacy Act of 1974, at Title 5, United
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`States Code, Section 552a.
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`e.
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`Defendant further agrees to waive all constitutional, legal and equitable
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`challenges (including direct appeal, habeas corpus, or any other means) to any forfeiture carried
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`out in accordance with this Plea Agreement on any grounds, including that the forfeiture
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`constitutes an excessive fine or punishment. The Defendant also agrees not to challenge or seek
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`review of any civil or administrative forfeiture of any property subject to forfeiture under this
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`agreement, and will not assist any third party with regard to such challenge or review or with
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 7 of 8
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`regard to the filing of a petition for remission of forfeiture.
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`f.
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`Defendant further acknowledges and agrees that any factual issues
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`regarding the sentencing will be resolved by the sentencing judge under a preponderance of the
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`evidence standard, and Defendant waives any right to a jury determination of these sentencing
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`issues. Defendant further agrees that, in making its sentencing decision, the district court may
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`consider any relevant evidence without regard to its admissibility under the rules of evidence
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`applicable at trial.
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`g.
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`Notwithstanding the foregoing, Defendant retains the right to pursue a
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`claim of ineffective assistance of counsel.
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`Defendant waives these rights in exchange for the United States Attorney entering
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`into this Plea Agreement and accompanying Plea Supplement.
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`9.
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`Complete Agreement.
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`It is further understood that this Plea Agreement and the
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`Plea Supplement completely reflects all promises, agreements and conditions made by and
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`between the United States Attorney’s Office for the Southern District of Mississippi and
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`Defendant.
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`Case 2:20-cr-00016-KS-MTP Document 89 Filed 07/20/21 Page 8 of 8
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`Defendant and Defendant’s attorneys of record declare that the terms of this Plea
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`Agreement have been:
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`9‘95“?!“
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`READ BY OR TO DEFENDANT;
`EXPLAINED T0 DEFENDANT BY DEFENDANT’S ATTORNEYS;
`UNDERSTOOD BY DEFENDANT;
`VOLUNTARILY ACCEPTED BY DEFENDANT; and
`AGREED TO AND ACCEPTED BY DEFENDANT.
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`WITNESS OUR SIGNATURES, as set forth below.
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`DARREN .l. LAMARCA
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`Acting United States Attorney
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`DEBORAH CONNOR
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`Chief
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`Money Laundering and Asset Recovery Section
`US. Department of Justice
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` t6
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`en, Trial Attorney
`Emily
`Alej andra Arias, Trial Attorney
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`Date
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`Navel
`Date
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`Q; ’29» 2a,
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