The case against Las Vegas attorney Noel Gage is beginning to take shape in federal court. Gage is accused of conspiring with doctors and middlemen to take millions of dollars away from his own clients and insurance companies in personal injury cases. Chief Investigative Reporter George Knapp recaps what the government has presented so far.More>>
Federal prosecutors say some local doctors and lawyers conspired to rip off their clients and patients for tens of millions of dollars. On Tuesday, the first of what may be dozens of prosecutions began. George Knapp has more from the secret audiotape and what may be the smoking gun document.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 and involves a secret tape.More>>
Tuesday, June 18 2013 8:13 PM EDT2013-06-19 00:13:36 GMT
PAHRUMP, Nev. -- A fight between senators in Washington, D.C., could resurrect the controversial Yucca Mountain nuclear storage project in Nye County. Nye County leaders met Tuesday to support the openingMore>>
A fight between senators in Washington, D.C., could resurrect the controversial Yucca Mountain nuclear storage project in Nye County.More>>
Tuesday, June 18 2013 10:49 PM EDT2013-06-19 02:49:28 GMT
LAS VEGAS -- Clark County Fire Department is battling a fire at a house near Russell Road and Spencer Street. According to the fire department's website, the fire started at around 4:30 p.m. Tuesday.More>>
A grass fire ignited a house in the 5400 block of Escondido Street, near Russell Road and Spencer Street, Tuesday afternoon.More>>
Tuesday, June 18 2013 9:50 PM EDT2013-06-19 01:50:28 GMT
LAS VEGAS -- A Las Vegas Metropolitan Police officer has been relieved of duty after pleading guilty to charges of possession of a controlled substance. Officer Ramin Amely was charged with two felonyMore>>
A Las Vegas Metropolitan Police officer has been relieved of duty after pleading guilty to charges of possession of a controlled substance.More>>
Tuesday, June 18 2013 7:14 PM EDT2013-06-18 23:14:30 GMT
LAS VEGAS -- Three major resort projects in Las Vegas could be the boost the local economy needs. The construction and hospitality industries have struggled since the recession, but signs of a reboundMore>>
Three major resort projects in Las Vegas could be the boost the local economy needs. The construction and hospitality industries have struggled since the recession, but signs of a rebound are emerging.More>>
Tuesday, June 18 2013 7:08 PM EDT2013-06-18 23:08:21 GMT
LAS VEGAS -- Clark County residents could soon be paying nearly 3 cents more a gallon for fuel, depending on a decision by county commissioners. The Nevada Legislature recently approved a bill that allowsMore>>
Clark County residents could soon be paying nearly 3 cents more a gallon for fuel, depending on a decision by county commissioners.More>>
Tuesday, June 18 2013 6:18 PM EDT2013-06-18 22:18:45 GMT
LAS VEGAS -- A domestic violence nonprofit organization that helps rescue women from violent relationships, is now itself in need of saving. Safe Faith United might have to shut its doors July 1 becauseMore>>
A domestic violence nonprofit organization that helps rescue women from violent relationships, is now itself in need of saving.More>>
Tuesday, June 18 2013 5:26 PM EDT2013-06-18 21:26:50 GMT
HENDERSON -- Imagine tens of thousands of children around the world learning to swim all at the same time. That's what happened Tuesday as part of "The World's Largest Swimming Lesson." The swimmingMore>>
Imagine tens of thousands of children around the world learning to swim all at the same time. That's what happened Tuesday as part of "The World's Largest Swimming Lesson."More>>
Tuesday, June 18 2013 3:33 PM EDT2013-06-18 19:33:34 GMT
LAS VEGAS -- Motorcyclists and local authorities are using "Ride to Work" day to remind everyone to share the road. This year, there has been 16 motorcycle deaths in Nevada. John Cahill is an experiencedMore>>
Motorcyclists and local authorities are using "Ride to Work" day to remind everyone to share the road.More>>
Tuesday, June 18 2013 3:10 PM EDT2013-06-18 19:10:04 GMT
LAS VEGAS -- Nearly 100 people will remain without a permanent place to live following Sunday's three-alarm fire at the Encantada Apartments. Officials with the Red Cross of Southern Nevada estimate theMore>>
Nearly 100 people will remain without a permanent place to live following Sunday's three-alarm fire at the Encantada Apartments.More>>
Federal prosecutors are ready to drop a bombshell on Las Vegas attorney Noel Gage when the lawyer is re-tried on conspiracy charges next month. Gage is accused of conspiring with local doctors and a middleman to rip off his own clients for huge sums. His first trial ended in a hung jury. But that jury didn't get to hear the evidence that could be introduced the second time around.
Anyone who's read the warm and fuzzy newspaper interviews that lawyer Noel Gage has given might remember that Gage says he moved to Las Vegas from El Paso Texas, essentially to retire.
Federal lawmen have uncovered evidence suggesting Gage left El Paso after being caught doing the same thing he is accused of doing here, namely, cutting side deals behind the backs of his own clients and fattening his own pocket in the process. The I-Team obtained the court documents which outline what happened back in Texas.
In his TV ads and his courtroom defense, Noel Gage has portrayed himself as a victim, a target of the powerful insurance industry. When Gage represented paralyzed injury victim Melodie Simon and other clients, he used good faith he says.
That defense is what might allow federal prosecutors to drop this bombshell during the next trial in May -- documents from a 1995 civil trial in El Paso Texas in which Gage and two other lawyers were found guilty of essentially the same things he's accused of in Nevada.
In the Nevada case, Gage is accused of conspiring with alleged middleman Howard Awand to rip off severely injured clients like Melodie Simon by cutting backroom deals with various doctors who were part of Awand's network. Gage promised Melodie Simon a settlement of $8-10 million but she received just over $2 million after he allegedly cut a side deal to let two doctors off the hook.
The case in Texas is similar in many ways. Court documents show Gage was hired to represent a group of chiropractors who were suing the insurance industry. But the jury found that he cut a side deal with two of the chiropractors, behind the backs of the other clients.
Gage failed to tell his other clients that he had a special relationship with two of the plaintiffs and had represented them in a dozen or more cases. The jury found that Gage misled most of the clients, withheld settlement money without telling them about it, directed too much money to his two longtime clients, and charged nearly $100,000 for expenses he could never document. The jury verdict was unanimous.
The lawyer who sued Gage and his co-defendants in Texas said Gage manipulated his clients for his own benefit and predicted Gage would express indignance and outrage at being accused, something now familiar in Las Vegas.
"My integrity is not for sale. I'm Noel Gage, continuing to fight for the rights of Las Vegans," he says in one of his TV ads.
One of the chiropractors who sued Gage, Dr. David Bailey of El Paso, told the I-Team he can't talk about the case since Gage had the case sealed before he left town, but Bailey called Gage a quote 'very slick character who can convince most anybody of anything.' He added after Gage kept 60-percent of the settlement, he charged his clients for unproven expenses, even filing cabinets.
The information about the Texas verdict was not introduced during Gage's first trial here. Sources familiar with the case believe this was because prosecutors may have planned to use it when they cross-examined him, but he never took the stand. Now it's been filed as part of the record for the second trial and might be one reason prosecutors expressed such confidence immediately after the hung jury.
"We feel really confident about our case against this defendant," said U.S. Attorney Greg Brower.
The question is -- will the judge in the re-trial allow this to be introduced? He previously excluded quite a bit of the government's case against Gage but prosecutors say that since Gage's defense depends on his good faith, evidence of bad faith in previous trials would certainly seem relevant.