Insurance Felon Fails to Get Early Release Because of Covid
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Courts across the United States have provided unvaccinated and ill prisoners compassionate release from jail ignoring the fact that the prisoner, if infected, might pass the disease to the public.
Brian Stone, proceeding pro se, moved for compassionate release claiming he suffers from long Covid. In United States of America v. Brian Stone, No. 2:16-cr-00038-KJM-3, United States District Court, E.D. California (July 5, 2022) the USDC kept him in jail.
BACKGROUND
After being disbarred as an attorney, Mr. Stone participated in a multi-fire arson and insurance fraud scheme. Mr. Stone was convicted of multiple counts of both mail fraud and wire fraud. In September 2018, he was sentenced to 72 months of imprisonment. According to the Bureau of Prisons, Mr. Stone is eligible to be placed in a halfway house, and this placement has already happened or will happen soon.
In 2020, the then-presiding Judge of this court denied Mr. Stone’s first motion for compassionate release. Mr. Stone again seeks compassionate release based on the following circumstances and allegations:
He is suffering from health issues relating to long COVID, including headaches, body aches, extreme fatigue, brain fog, elevated heartrate, and cramping.
Stone has experienced these symptoms for over a year and has not received treatment for his symptoms because Federal Correctional Institution (FCI) Lompoc, where he is incarcerated, has classified him as fully recovered.
COVID-19 “has spread like wildfire” at FCI Lompoc and Mr. Stone is “at heightened risk for serious illness or death” from COVID due to his serious underlying health conditions. These conditions include hypertension, diabetes, unspecified depressive disorder, Binswanger’s Disease (a form of dementia), and residual symptoms of a stroke.
His sentence has been harsher as a result of the COVID-19 pandemic, and he has a viable release plan and support from family. Mr. Stone’s projected release date is November 12, 2022, based upon application of Good Conduct Time and First Step Act Earned Time Credits.
The government opposed his motion based primarily on its analysis of his medical conditions. Mr. Stone has been fully vaccinated and boosted against COVID-19, and his medical records indicate he is being treated for several health conditions, including type 2 diabetes, hyperlipidemia, dementia, and essential (primary) hypertension. The government also argued that an early release would be inappropriate given the severity and complexity of his crimes and his criminal history. Mr. Stone is in his early 60s. Mr. Stone has not filed a reply to the government’s March 30, 2022 opposition.
ANALYSIS
If a defendant is vaccinated, as Mr. Stone is, the USDC court has employed a rebuttable presumption that the risk of severe harm from COVID-19 is not an “extraordinary and compelling” reason under the code. A defendant can rebut this presumption by offering evidence of an elevated personal risk of severe harm despite the protections of vaccination.
When defendants offer no evidence that vaccination will not protect them against severe harm from COVID-19 and do not show the facilities where they are currently incarcerated are experiencing a surge in infections caused by a SARS-CoV-2 variant, courts deny motions more often than not.
Although Mr. Stone’s health conditions and age likely put him at risk of severe COVID-19 if he were not vaccinated, he did not cite evidence showing he remains at risk. While he alleges COVID-19 is spreading in the facility where he is housed, the Bureau of Prisons’ COVID-19 webpage indicates that zero inmates and three staff are currently infected with COVID-19 at FCI Lompoc.
Finally, Mr. Stone has been, or soon will be, released to a halfway house, where the population will be smaller and thus less conducive to the spread of COVID-19. He has not carried his burden to show his health conditions and risk of reinfection are extraordinary and compelling circumstances.
The motion was denied without prejudice to renewal with evidence of an elevated personal risk of severe harm despite the protections of vaccination.
ZALMA OPINION
Insurance criminals, like disbarred lawyer Stone, have no honor. Although scheduled for release for good behavior to a half-way house, insisted on bothering the District Court with a motion for compassionate release without providing sufficient evidence. His effort failed although the court allowed him to try again.
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Random Thoughts on Insurance Volume XIV: A Collection of Blog Posts from Zalma on Insurance —
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(c) 2022 Barry Zalma & ClaimSchool, Inc.
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 54 years in the insurance business. He is available at http://www.zalma.com and [email protected].
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Convicted Criminal Seeks to Compel Receiver to Protect his Assets
Post number 5291
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The Work of a Court Appointed Receiver is Constitutionally Protected
In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.
Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
When There are Two Different Other Insurance Clauses They Eliminate Each Other and Both Insurers Owe Indemnity Equally
Post number 5289
In Great West Casualty Co. v. Nationwide Agribusiness Insurance Co., and Conserv FS, Inc., and Timothy A. Brennan, as Administrator of the Estate of Pat- rick J. Brennan, deceased, Nos. 24-1258, 24-1259, United States Court of Appeals, Seventh Circuit (February 11, 2026) the USCA was required to resolve a dispute that arose when a tractor-trailer operated by Robert D. Fisher (agent of Deerpass Farms Trucking, LLC-II) was involved in a side-impact collision with an SUV driven by Patrick J. Brennan, resulting in Brennan’s death.
Facts
Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...
Opiod Producer Seeks Indemnity from CGL Insurers
Post number 5288
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Insurers Exclude Damages Due to Insured’s Products
In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.
KEY FACTS
Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.
Bankruptcy & Settlements
Endo filed Chapter 11 in August 2022; before bankruptcy it ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.
Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
