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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Anti-Public Adjuster Clause Is Effective in New York
Post number 5301
Read the full article at https://www.linkedin.com/pulse/public-adjusters-attempt-represent-insured-subject-zalma-esq-cfe-rubfc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Insurers May Contractually Prevent an Insured from Hiring a Public Adjuster
In Peter Barbato & North Jersey Public Adjusters Inc. v. Interstate Fire & Casualty Company, et al, No. 25-cv-5312 (JGK), United States District Court, S.D. New York (December 15, 2025) the plaintiffs, Peter Barbato and North Jersey Public Adjusters, Inc. (“NJPA”), filed suit against several insurance companies, including Interstate Fire & Casualty Company, Independent Specialty Insurance Company, and certain Underwriters at Lloyd’s of London.
FACTS
NJPA is a New Jersey-based public adjusting firm licensed in New York. The dispute centers on ...
Anti-Public Adjuster Clause Is Effective in New York
Post number 5301
Read the full article at https://www.linkedin.com/pulse/public-adjusters-attempt-represent-insured-subject-zalma-esq-cfe-rubfc, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Insurers May Contractually Prevent an Insured from Hiring a Public Adjuster
In Peter Barbato & North Jersey Public Adjusters Inc. v. Interstate Fire & Casualty Company, et al, No. 25-cv-5312 (JGK), United States District Court, S.D. New York (December 15, 2025) the plaintiffs, Peter Barbato and North Jersey Public Adjusters, Inc. (“NJPA”), filed suit against several insurance companies, including Interstate Fire & Casualty Company, Independent Specialty Insurance Company, and certain Underwriters at Lloyd’s of London.
FACTS
NJPA is a New Jersey-based public adjusting firm licensed in New York. The dispute centers on ...
Proof of Highly Contaminated Water is Required for Extra Payments
Post number 5300
Read the full article at https://www.linkedin.com/pulse/acting-your-own-lawyer-foolish-barry-zalma-esq-cfe-mbg0c, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Acting as Your Own Lawyer is Foolish
Evidence of Breach of Contract Survives Dismissal of All Other Charges
In Lee Lifeng Hsu and Jane Yuchen Hsu v. State Farm Fire And Casualty Company, C. A. No. N24C-09-020 CLS, Superior Court of Delaware (February 27, 2026) a claim to State Farm who paid approximately $61,000 after assessments but denied coverage for additional items including ceramic tiles, the kitchen floor ceiling, underlayment plywood, and numerous personal property items resulted in suit by the Hsu’s acting in pro per.
Facts
Lee Lifeng Hsu and Jane Yuchen Hsu (“Plaintiffs”) purchased a homeowners’ insurance policy from State Farm Fire...
Insurance Condition Requires Following the Intent of the Parties
Post number 5307
Principles of Contract Interpretation Compels Reading Contract as Written
Read the full article at https://www.linkedin.com/pulse/portable-storage-containers-buildings-barry-zalma-esq-cfe-fkg1c and at https://zalma.com/blog.
In Eastside Floor Supplies, Ltd. v. SCS Agency, Inc., Hanover Insurance Company, et al., No. 2024-01501, Index No. 609883/19, 2026 NY Slip Op 01488, Supreme Court of New York, Second Department (March 18, 2026)
In May 2019, a fire damaged business personal property belonging to the plaintiffs, which was stored in portable storage containers at their Manhattan premises. At the time of the fire, the plaintiffs were insured under a businessowners insurance policy (BOP) issued by the defendant Hanover Insurance Company which provided general coverage for business personal property, and which included a specific extension for “Business Personal Property Temporarily in Portable Storage Units” (the portable storage ...
ERISA Saves Fraudulent Claims Suit
Post number 5306
Read the full article at https://www.linkedin.com/pulse/failure-provide-well-pled-facts-defeats-most-action-zalma-esq-cfe-b4zuc and at https://zalma.com/blog plus more than 5300 posts.
Allegations of Fraudulent Insurance Billing Must be Pleaded with Specificity
In Genesis Laboratory Management LLC v. United Healthcare Services, Inc. and Oxford Health Plans, Inc., No. 21cv12057 (EP) (JSA), United States District Court, D. New Jersey (March 13, 2026) Genesis Laboratory Management LLC (“Genesis”), a New Jersey-based molecular diagnostic and anatomic pathology laboratory, provided COVID-19 related testing services and submitted claims for reimbursement as an out-of-network provider to United Healthcare Services, Inc. (“United”) and Oxford Health Insurance, Inc. (“Oxford”). Metropolitan Healthcare Billing, LLC (“Metropolitan”), owned by the same individual as Genesis, handled the billing for Genesis.
FACTUAL BACKGROUND
United and Oxford, who administer both ERISA and ...
ERISA Saves Fraudulent Claims Suit
Post number 5306
Read the full article at https://www.linkedin.com/pulse/failure-provide-well-pled-facts-defeats-most-action-zalma-esq-cfe-b4zuc and at https://zalma.com/blog plus more than 5300 posts.
Allegations of Fraudulent Insurance Billing Must be Pleaded with Specificity
In Genesis Laboratory Management LLC v. United Healthcare Services, Inc. and Oxford Health Plans, Inc., No. 21cv12057 (EP) (JSA), United States District Court, D. New Jersey (March 13, 2026) Genesis Laboratory Management LLC (“Genesis”), a New Jersey-based molecular diagnostic and anatomic pathology laboratory, provided COVID-19 related testing services and submitted claims for reimbursement as an out-of-network provider to United Healthcare Services, Inc. (“United”) and Oxford Health Insurance, Inc. (“Oxford”). Metropolitan Healthcare Billing, LLC (“Metropolitan”), owned by the same individual as Genesis, handled the billing for Genesis.
FACTUAL BACKGROUND
United and Oxford, who administer both ERISA and ...
