Chi Yang faced prison time and hundreds of thousands of dollars in fines and restitution when he agreed to plead guilty in connection with fraudulent sales made by his biotech company. Then federal Judge Saundra Armstrong, in what observers call a highly unusual move, refused to accept the plea, stating at a hearing: "It is not my practice to accept guilty pleas from people who are not guilty." The development represents a stumble in the government's ongoing efforts in the arena of health care fraud.
July 21, 2008 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
The case seemed ready for the government’s final press release.
After months of negotiations, Chi Yang agreed to plead guilty in connection with fraudulent sales made by his Dublin, Calif.-based biotech company. Even though he would admit to making a false statement, not fraud, Yang would still have to do prison time. He would also owe hundreds of thousands of dollars in fines and restitution.
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