Insofar as Rule 6(e) is concerned, it is probably the duty of a U.S. Attorney to cooperate with state law enforcement personnel and to exchange information. In this sense, the providing of information adduced before a federal Grand Jury probably does not controvert the rule. In this case it is not necessary to decide the point because an inspection of the sealed records on file with the clerk discloses that there were court orders, on joint application of the U.S. Attorney and the Attorney-General of New Jersey, authorizing Grand Jury materials to be furnished to the state.
Nor can any invidious purpose be inferred from this arrangement. As is well known, federal Grand Juries serve regularly for 18 months, one day each week, with a total of 5 available to adduce testimony in any week. State grand juries serve for a much shorter term of 2 or 3 weeks. In an extended investigation, it is rational to make the initial presentation to federal Grand Juries, and to present what they have learned, at the end, to a state Grand Jury.
For the reasons stated, all motions based on this state of facts are DENIED.
Motions for stay.
It is argued that the trial here should be stayed to allow the state trial to be conducted first. The federal courts have a Speedy Trial Act; the state courts (to their good fortune) do not. Obviously, both trials cannot proceed at the same time if only because each defendant must be present at the trial, and because counsel of his choice cannot be in two courts at the same time.
In this court, trial will be reached as soon as other cases ahead of this one are disposed of. If, at that time, the state trial has begun, this one will begin at a reasonable point after the state trial has ended. Conversely, if trial here begins first, the state trial will presumably await the completion of this one.
These motions are accordingly DENIED.
Some motions are based on the argument that the Liberty House cost statements were physically submitted to the State of New Jersey, and not to any agency of the United States. These motions are without substance and frivolous. The federal law, 18 U.S.C. § 1001, applies when false statements, etc., are made in a matter within the jurisdiction of any department or agency of the United States. Both HEW and IRS fit this description.
The structure of the federal laws on Medicaid contemplates that the states establish programs, and make payments on the basis of cost studies. The state, in turn, having paid the provider, grounds its claim for reimbursement of the federal share on the cost studies submitted to it.
A clearer case of making false statements, etc., within a federal jurisdiction, can hardly be imagined. The motions grounded on this theory are accordingly DENIED.
A number of discovery motions sought access to documents, not in the possession of the United States but in the possession of New Jersey or New York. The United States has agreed to gather these documents and to provide access. As a result, some motions may be withdrawn and others pressed.
Since these items do not fall within Rule 16 or the standard discovery order, the court cannot rule on them at this time, or fix a specific time schedule. Instead, a formula arrangement was established, and it is recorded as follows:
1. On whatever date the United States has gathered all the documents from other sources, it is to prepare a list of them in writing, and serve a copy of that list on all defendants with the original to be filed with the clerk.