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Former medical consultant sentenced for failing to report criminal activity
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DAVID STROUD/LAS VEGAS REVIEW-JOURNAL
Former medical consultant Howard Awand sits in court Friday during his sentencing hearing. He pleaded guilty to failing to report criminal activity and a judge sentenced him to four months in prison, ending a three-year battle in court. » Buy this photo
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Former medical consultant Howard Awand smiles as he leaves Lloyd George U.S. Courthouse after being sentenced. GARY THOMPSON/LAS VEGAS REVIEW-JOURNAL » Buy this photo
LAS VEGAS REVIEW-JOURNAL
When former medical consultant Howard Awand was indicted in February 2007, prosecutors described him as the central figure in a multimillion-dollar conspiracy involving unidentified Las Vegas doctors and lawyers.
One doctor and one lawyer eventually were charged in the fraud case, which came to a close Friday when Awand became the only defendant in the case to receive a prison sentence. Prosecutors had accused the defendants of defrauding clients by protecting doctors from malpractice lawsuits and sharing kickbacks from legal settlements.
"There are many parties in this matter, both named and unnamed, who have allowed greed to overcome their moral and ethical obligations," Senior U.S. District Judge Justin Quackenbush said Friday.
The judge sentenced Awand to four months in prison and ruled that he may serve the sentence while serving a four-year term he received in a separate case for willfully failing to pay $2.5 million in income taxes. Awand is appealing his conviction and sentence in the tax case.
Prosecutors reached plea agreements with all three defendants in the fraud case. Although the deals yielded a felony conviction for each defendant, the case did not result in a single fraud conviction.
"One of our goals in bringing this prosecution was to shed light on the practice that existed between the doctors and lawyers in violating the trust of their patients and clients," First Assistant U.S. Attorney Steven Myhre said. "I think we were successful in doing that. It is a federal offense when someone violates their fiduciary duties and the trust of their clients in order to personally profit, and we will continue to prosecute those cases."
Awand, 65, pleaded guilty in March to a charge called misprision of felony, which involves a failure to report the criminal activity of others.
Surgeon Mark Kabins pleaded guilty in November to misprision of felony and later was sentenced to five years of probation. Attorney Noel Gage pleaded guilty in February to obstruction of justice and later was sentenced to three years of probation with 90 days of house arrest.
Two surgeons, John Thalgott and Benjamin Venger, were granted immunity in exchange for their testimony in the fraud case, which centered on the medical malpractice case of Melodie Simon, who was paralyzed after Thalgott and Kabins operated on her in 2000.
As part of Awand's plea bargain, prosecutors agreed to make no recommendation to the judge regarding a period of incarceration. Instead, Assistant U.S. Attorney Daniel Schiess urged Quackenbush to impose a sentence "based upon justice and not upon mercy."
Schiess accused Awand of abusing not only Simon, but the entire Las Vegas community, by seeking "to destroy the integrity of the medical and legal professions here."
Quackenbush interrupted the prosecutor's argument, saying he planned to consider only the criminal activity outlined in the plea agreement.
"I don't want to hear anything other than what is before me," the judge added.
Schiess told Quackenbush a defendant's character should be an important consideration when imposing a sentence.
"Mr. Awand's character is one of dishonesty over a long period of time," the prosecutor argued.
Quackenbush again stopped Schiess, telling him it would be unfair to base Awand's sentence on allegations in a conspiracy charge that prosecutors had dismissed.
Schiess went on to point out that U.S. District Judge Kent Dawson had concluded that Awand committed perjury while testifying at his tax trial. But Quackenbush told Schiess that was a separate case.
The prosecutor, obviously frustrated, then cut his argument short.
As part of Awand's plea agreement, he admitted he knew that Kabins and Gage had committed mail or wire fraud, that he concealed "material information" about the crime, and that he did not report it to the proper authorities as soon as possible.
Gage represented Simon in her malpractice case. Rather than sue Thalgott or Kabins, who were part of Awand's network, the lawyer sued an anesthesiologist. Prosecutors contended the shift in strategy was prompted by Gage's desire to receive case referrals from Awand.
Awand arranged a 2001 meeting at which the two surgeons and Gage discussed Simon's malpractice case, but Awand told Quackenbush he did not speak during the meeting. Awand also told the judge that the two surgeons had never lost a malpractice case.
"It was never an intention to hurt Ms. Simon," Awand said.
He also said Gage made all the decisions regarding the malpractice case.
Simon's case settled for $2.3 million, but prosecutors argued it was worth much more. After attorney fees and costs were deducted, Simon received $1.3 million.
On Friday, Quackenbush concluded that Gage would have pursued a malpractice claim against Thalgott and Kabins if Awand had not been involved in the matter.
"I believe, were it not for your actions, Ms. Simon's claim would have been appropriately pursued and prosecuted," the judge told Awand.
As part of Gage's plea agreement, he paid Simon $700,000. Quackenbush said Schiess persuaded him to issue the same restitution order for Awand, even though the defendant's dire financial situation probably will prevent him from fulfilling the obligation.
The prosecutor had suggested a restitution order of $1.5 million, the same amount Thalgott voluntarily paid Simon, "even if it's a hollow order."
Kabins paid Simon $3.5 million in restitution.
The federal sentencing guidelines called for Awand to receive a prison term in the range of four to 10 months. Quackenbush said he considered Awand's military service before selecting his punishment.
"You gave four years of your life serving in the United States Army with appropriate commendations," the judge told Awand.
Schiess argued that Quackenbush should also consider Awand's later actions, such as his use of "stolen valor."
The prosecutor read from a transcript of Awand's testimony at his tax trial. Awand admitted during the trial that he had lied about being a CIA agent.
Schiess also said Awand purchased military medals, which he displayed on his wall, "and told people that he was a war hero in Vietnam."
Quackenbush said that did not change the fact that Awand served honorably in the Army for four years.
After the hearing, Awand said he could live with the four-month sentence Quackenbush imposed -- but not with the four-year sentence he received for his misdemeanor convictions in the tax case.
When asked whether he believed he had done anything wrong, he replied, "No. I didn't pay my taxes. I am guilty of that, and that's it."
In January, Awand and his wife, Linda, each were convicted of four counts of willful failure to pay income taxes. The crime is a misdemeanor.
Defense attorneys argued that the couple had a history of paying their taxes late. Braun said they would have continued paying their taxes if Awand's medical consulting business had not collapsed in 2005.
"He was convicted of something that is probably not even a crime -- which is not paying your taxes on time," Braun said.
Howard and Linda Awand now live 900 miles apart, managing independent bed-and-breakfast facilities. Linda Awand, who operates an inn in Vermont, did not attend her husband's hearing Friday. Howard Awand operates an inn in Indiana.
The couple have until July 24 to surrender to prison, but they have asked to remain free until their appeal is resolved. That motion is pending, but prosecutors said they plan to oppose it.
Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710.
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10-4 Scumbuster.
It ain't over guys. There's SOOOO much more to this that hasn't been printed or told yet so as not to jeopardize what's yet to come. Howard's the most arrogant, supercilious person I've ever known, but even Howard called Bob Vannah 'the big Kahuna'. And Howard WILL get his in spades. Count on it.
The Feds fell off their chairs laughing when I told them Howard BOUGHT his medals, but they didn't laugh about the rest of it. Stay tuned.
"Awand is appealing his conviction and sentence in the tax case."
"When asked whether he believed he had done anything wrong, he replied, "No. I didn't pay my taxes. I am guilty of that, and that's it."
REALLY?
"One of our goals in bringing this prosecution was to SHED LIGHT on the practice that existED between the doctors and lawyers in violating the trust of their patients and clients," First Assistant U.S. Attorney Steven Myhre said. -
Quackenbush reduced the light shed on this operation to that of a NIGHT LIGHT! How about SUN LIGHT, the UNNAMED and an arsenal of REAL CHARGES? Oh wait, that would require a Judge willing to hear the full extent of the criminal behavior? Did he have his hands over his ears and sing, "I can't hear you" too?
Please don't give up. Even NIXON tried and did practically shut down the Department of Justice's ability to prosecute him! Consider this comment 1,000,000 "Western Union Telegrams" from your public saying "HANG in THERE...STAY...YOU HAVE OUR SUPPORT"
We understand the Judge silencing your arguments and refusing to believe, hear or acknowledge such crimes are and have been committed. We understand certain Judges not wanting to lift a finger to protect the community" We get it!
The community was fish food. The fish became sharks. New construction was shark bait. The boom made for hunting season. The court IS the mill! Get it?
SHOULD READ rick b thiriot 123 wynntry drive henderson. (POLICE SUBSTATION)
His original conviction was in January, and he received his 4 year sentence in April. Has he yet started serving his sentence?
OMG. Appealing. Really? Guilty as sin Awand. You have gotten close to what you deserve you piece of scum. How are all your castles and chalets you used to brag about owning? Frankly, I hope you become somebody's sweetheart in prison. You deserve nothing less. And, let's all hope Judge Quackenwacker (oh sorry Quackenbuch) never serves on the bench in again in Vegas. That judge is a total moron. Wonder how much he was paid for his rulings? None of the creeps involved in this scheme got close to what they actually deserve. No justice was served at all.