Drew Neville, B. Rothbaum, Jr. Dolan, New York City, for Richman. Block, Theodore Klein, Miami, Fla. This appeal addresses two separate criminal actions joined at trial and consolidated for purposes of oral argument on appeal.
For clarity and efficiency we address both actions in one opinion, setting out a separate disposition as to each appellant. Each appellant appeals his or her conviction, alleging insufficient evidence to support prosecution under RICO.
A number of evidentiary, constitutional, and procedural grounds of error are also raised. The crime which the government sought to prove was a simple one, a conspiracy to defraud pharmaceutical manufacturers by misrepresentations made through use of interstate mail and wire transmissions.
The case is complicated, however, by the context in which this crime took place, the so-called diversion market of the American pharmaceutical industry. An understanding of the case therefore requires an understanding of diversion and its role in the marketing of pharmaceuticals in this country. The Robinson Patman Act, 15 U.
An exception to the Act allows discriminatory prices for sales to nonprofit organizations. By its terms, the Act does not cover sales of goods for export. In response to the Act, pharmaceutical manufacturers maintain a bifurcated pricing structure.
