Jury reconvened for sentencing trial

Although Hayden businessman Christopher Close was convicted in July of defrauding the federal government and some of his elderly clients, the jury reconvened in Coeur d’Alene this week for an unusual sentencing trial.

A pending U.S. Supreme Court case could require juries – not judges – to consider so-called sentencing enhancements, which can add additional jail time or fines to punishments, said Wendy Olson, the assistant U.S. Attorney who led the prosecution against Close. Sentencing enhancements are applied in weapons, drugs or fraud cases.

Close is the former owner of the Hayden-based medical equipment company, “Back ‘N Action.” Many of the charges against him involved his billing Medicare for $6,000 electric wheelchairs, but providing his elderly patients with $2,000 electric scooters. Close’s acts of fraud totaled more $170,000, with most of the money coming from Medicare.

“The government viewed this as a very significant fraud case,” Olson said.

Belva Pangallo, of Coeur d’Alene, testified at the sentencing trial. Her uncle, now deceased, was a one of the fraud victims.

“He was a smooth talker,” Pangallo said of Close. “Chris was so nice.”

Pangallo’s husband, Earnest, believes the sentence should be harsh for anyone convicted of preying on the elderly, especially those who are disabled. He had his own idea for a sentence enhancement for Close: “Cut off his legs and put him in a wheelchair.”

Although Close was convicted in July of 30 counts of healthcare fraud, nine counts of money laundering and two counts of obstructing justice, his sentence largely depends on the number of victims and amount of money involved, Olson said. The Supreme Court is not expected to decide on the sentencing case until early next year.

The three-day trial in Coeur d’Alene ended Wednesday. Jurors were asked to consider six questions, including loss amount, whether Close abused a position of public trust and if he “engaged in more than minimal planning in the commission of the offenses.” Each of the questions is designed to address specific sentence enhancements.

Although Close’s guilt has already been proven, the sentencing trial essentially required a rehashing of all the evidence, Olson said. “It’s extremely resource intensive,” she said of the process.

For each question, the jury unanimously ruled against Close. U.S. District Judge Edward Lodge will sentence Close on Feb. 22. Close faces 78 to 90 months in prison, plus a fine.

The sentence enhancement measures are now being built into new federal cases, which means separate sentencing trials will not be the norm, Olson said. Close’s case was unique because the case against sentence enhancements was heard by the Supreme Court in early October, which was after Close was convicted but before he was sentenced. The sentence trial was conducted to ensure the outcome would comply with any decision by the high court, Olson said.