⚖ Oral Arguments, with Context

The Sixth Circuit hears the government's appeal from a judgment acquitting Sherif Khalil. Khalil operated Spectra Clinical Labs, which tested urine samples and billed Medicare. Prosecutors alleged that he paid marketers to generate unlawful testing business, including orders doctors had not authorized. A jury found him guilty of two conspiracy counts, but the trial judge set that verdict aside for insufficient evidence. The government says the evidence supported the jury's decision; Khalil says it did not show the unlawful agreement and knowledge required to convict him. Two legal distinctions will recur. The federal Anti-Kickback Statute prohibits certain knowing and willful payments to induce referrals for services covered by federal health programs. The dispute includes whether these commissions were unlawful kickbacks or payments for legitimate marketing. The lawyers also discuss overt acts: steps taken to advance an alleged conspiracy. And Rule Twenty-Nine permits a judge to enter an acquittal when the evidence is legally insufficient to sustain a conviction. That review asks whether a rational jury could find guilt beyond a reasonable doubt, viewing the evidence in the prosecution's favor.

United States v. Khalil (No. 25-1710) — U.S. Court of Appeals for the Sixth Circuit, argued October 20, 2026.