Federal prosecutors have uncorked a blistering indictment which alleges a dark conspiracy involving some of the best known doctors and lawyers in Las Vegas. I-Team's Chief Investigative Reporter George Knapp takes a closer look.More>>
A federal judge says thereis enough evidence to send two men to trial in the doctor-lawyer medical fraud case. The trial is set for February. The Channel 8 I-Team was the first to report on the indictments. More>>
Federal prosecutors unsealed an 18-count indictment Tuesday against two men alleged to have participated in a wide-ranging conspiracy to defraud patients and clients and insurance companies out of millions of dollars. The three-year FBI probe was first made public by the I-Team's George Knapp.More>>
A businessman described as the hub of a group known as the "Medical Mafia" has been indicted by federal authorities on multiple charges, and more indictments are expected. Read on for a link to the federal criminal indictment against Howard Awand.More>>
Friday, May 17 2013 8:05 PM EDT2013-05-18 00:05:13 GMT
LAS VEGAS -- When Randy Kleiner stopped to help an injured driver, he didn't expect to become injured himself. But on Thursday morning, as he was assisting someone who had crashed their car, anotherMore>>
When Randy Kleiner stopped to help an injured driver, he didn't expect to become injured himself.More>>
Saturday, May 18 2013 9:25 PM EDT2013-05-19 01:25:46 GMT
As a family struggles with the death of a 15-year-old boy killed over and iPad, police are trying to track down the men responsible. Police say two men tried to rob the child of the device on Thursday.More>>
As a family struggles with the death of a 15-year-old boy killed over and iPad, police are trying to track down the men responsible.More>>
Saturday, May 18 2013 9:09 PM EDT2013-05-19 01:09:50 GMT
Lines of people were wrapped around The Lotto Store twice this weekend for the second largest lottery in the history of Powerball. The jackpot has grown to $600 million. People tell 8 News Now they waitedMore>>
Lines of people were wrapped around The Lotto Store twice this weekend for the second largest lottery in the history of Powerball.More>>
Friday, May 17 2013 9:02 PM EDT2013-05-18 01:02:54 GMT
LAS VEGAS -- A volunteer basketball coach at Shadow Ridge High School has been arrested, Clark County Schools Police Lt. Ken Young said. According to the Clark County Detention Center, the volunteer coach,More>>
A volunteer basketball coach at Shadow Ridge High School has been arrested, Clark County Schools Police Lt. Ken Young said.More>>
Friday, May 17 2013 8:56 PM EDT2013-05-18 00:56:00 GMT
LAS VEGAS - Metro Police says a preteen who was assaulted Thursday during an attempted robbery has died. Investigators said the preteen was walking near Charleston Boulevard and Torrey Pines Drive withMore>>
Marcos Arenas, a Bonanza High School student who was assaulted Thursday during an attempted theft, has died, Metro Police said.More>>
Friday, May 17 2013 8:39 PM EDT2013-05-18 00:39:56 GMT
LAS VEGAS -- Metro Police are investigating two people found dead in an apartment complex near Desert Inn Road and Maryland Parkway. According to police, the bodies were found around 3 p.m. Friday atMore>>
Metro Police are investigating the deaths of a man and a woman whose bodies were found in an apartment Friday afternoon near Desert Inn Road and Maryland Parkway.More>>
Friday, May 17 2013 8:17 PM EDT2013-05-18 00:17:28 GMT
LAS VEGAS -- Clark County firefighters are responding to reports of an explosion and fire at a facility located at North Las Vegas Boulevard and Sloan Lane. This is a developing story. 8NewsNOW. com willMore>>
One person is reported dead following an explosion and fire at a facility located at North Las Vegas Boulevard and Sloan Lane.More>>
Friday, May 17 2013 8:03 PM EDT2013-05-18 00:03:09 GMT
LAS VEGAS -- The theft of iPads, iPhones and other Apple devices is becoming commonplace, earning it the nickname, "Apple-picking," the police said. Bonanza High School student Marcos Arenas died ThursdayMore>>
The theft of iPads, iPhones and other Apple devices is becoming commonplace, earning it the nickname, "Apple-picking," the police said.More>>
Friday, May 17 2013 6:42 PM EDT2013-05-17 22:42:38 GMT
LAS VEGAS -- The Federal Election Commission had found that the parents of disgraced former Sen. John Ensign of Nevada made excessive in-kind contributions to a former political action committee staffMore>>
The Federal Election Commission had found that the parents of disgraced former Sen. John Ensign of Nevada made excessive in-kind contributions to a former political action committee staff member.More>>
Jury selection has begun in what federal prosecutors hope will be the first of many prosecutions of local doctors and lawyers. It's the result of a massive investigation that stretched over five years. Lawyer Noel Gage is the first defendant to stand trial for allegedly ripping off his own clients.
Only two people have been indicted so far, attorney Noel Gage and alleged middle man Howard Awand but federal documents make it clear the case is much bigger than just these two. The government is accusing the men of conspiracy, fraud, witness intimidation, and of fleecing their own clients.
It is an incredibly complicated case, even for the participants, so strap yourself in and hang on. Attorney turned criminal defendant, Noel Gage has been telling television viewers for months in his commercials that insurance companies are somehow responsible for the federal investigation that led to his indictment.
Two other prominent attorneys Bob Vannah and Robert Eglet, believed to be primary targets of the federal probe, have been saying the same thing.
In a secretly recorded tape, Vannah boasts of why insurance companies hate him.
Bob Vannah: Last year, "I took state farm for about $100 million. Literally, $100 million. I mean, I just devastated them."
The insurance industry says it tried for years to get the FBI to go after the alleged cabal that's now in the crosshairs, and for a simple reason -- the number of legal claims filed in injury cases southern Nevada is 63% higher than the national average, twice as high as northern Nevada.
It's like a tax on everyone who lives here, the industry says. "100's of millions of dollars over the past two years," said Bob Feldman, Nevada Insurance Council.
Federal prosecutors agree that insurance companies have been pummeled by Gage and nearly two dozen other lawyers and doctors alleged to be part of the conspiracy, but that the real victims are the little guys.
"The victims here were, in fact, clients. They were defrauded of the honest services of their attorneys," said Steve Myrhe, Assistant U.S. Attorney. To understand how the alleged cabal operated, consider one of the cases listed in the indictment, that of Melodie Simon, a teacher at Cheyenne High School who underwent back surgery in 2000.
Doctors Mark Kabins and John Thalgott operated, but something went wrong. Simon is permanently paralyzed from the waist down. She was put in touch with so-called medical fixer Howard Awand, the suspected middle man in the conspiracy. Awand met with Noel Gage about the Simon case.
A letter to Dr. Kabins form his attorney acknowledges that Gage felt he could sue Kabins and Thalgott but offered to let them off and blame Simon's paralysis on anesthesiologist Dan Burkhead. The lawyer advised Kabins against making a deal with Gage and said the insurance company would not allow it. But Kabins and Thalgott did it anyway.
In a sworn statement to the FBI, Thalgott says he and Kabins met with Gage and Awand without their lawyer. Gage remarked in the beginning it was a quote "meeting that didn't happen". In the meeting, Gage and Awand cut a deal to let Kabins and Thalgott off if they helped build a case against Dr. Burkhead. Days later, Awand sent a confidential letter to Kabins, telling Kabins that both he and Gage would keep their word, then asking for help in proving where the anesthesiologist screwed up.
Melodie Simon sued Dr. Burkhead and was awarded $7 million, money to last the rest of her life. The FBI thinks Gage and Awand greatly inflated Simon's medical bills because it meant more money for them. Out of the $7 million, Gage made three payments to Awand totally $1.3 million, and another payment of $430,000 to a doctor who helped the scheme, all without telling Melodie Simon the real reason for the payouts.
More importantly for Simon, Dr. Kabins and Dr. Thalgott, who had some responsibility according to Gage, were covered by $6 million in malpractice insurance, money that wasn't paid to Simon because her lawyer cut a backroom deal, according to the government.
As the money rolled in, the conspirators got even busier, the government says. Awand sent a letter to Dr. Kabins in 2002 saying he referred so many cases he had lost track of them. Two doctors had second thoughts and went to the government, John Thalgott and Ben Venger. Both will testify.
But even after the word surfaced about an FBI probe, some suspects stayed the course. In a secretly recorded tape, lawyer Bob Vannah tells Dr. Venger it will be business as usual.
Bob Vannah: "We're gonna make sure we work out something. You don't have to worry about me, but I want to make sure you're safe bringing me cases. You know, obviously I don't plan to stop doing that so, um, I don't know if it's cash, but we can work out something. The business like that, that's going to be gigantic."
Vannah was right about that. Lawmen say the group took in hundreds of millions of dollars over a six-year period. Venger and Thalgott bailed out though and will be key witnesses for the prosecution. Defense attorneys, including Gage's lawyer Tom Pitaro, think the whole thing was instigated by the insurance industry.