Naming names in federal indictment puts faces with letters, numbers

Client 1. Client 2. Physicians AA, BB, CC, DD, EE, FF.

Who are these people? And why were they cloaked in anonymity in the federal indictment of Las Vegas attorney Noel Gage and medical consultant Howard Awand?

After a previous indictment in February of Awand alone, through a combination of digging, pestering and pleading, I confirmed Attorney A was Gage, a 69-year-old personal injury attorney.

In a superseding indictment in May, both Awand and Gage were charged. That second indictment raised more questions by mentioning two unnamed patients and six unidentified doctors.

Today we name names.

Four doctors identified only by letters in the indictment are Dr. Benjamin Venger, Dr. John Thalgott, Dr. Mark Kabins, all surgeons, and Dr. Dan Burkhead, a pain management anesthesiologist.

The identity of Physicians AA and BB remain unconfirmed.

However, just because these doctors are mentioned in an indictment — one alleging conspiracy between doctors and lawyers to defraud patients and run up insurance costs — that does not mean they will be indicted.

Venger, a neurosurgeon, and Thalgott, an orthopedic surgeon, already have been witnesses for the prosecution. Burkhead was not part of the conspiracy, but was allegedly conspired against. And Kabins, an orthopedic surgeon, is said to be a grand jury target, but has not been charged with anything.

The indictment’s allegations, if proven, will show two types of fraud against two disabled patients who hired Gage to represent them in unrelated medical malpractice cases.

Patient 1 is Carlos Pachas, a Henderson man who went into a hospital with kidney stones and came out permanently disabled. He won a big settlement (the amount sealed) but much of it allegedly went to Awand.

The government alleges Venger received more than $400,000 from Awand and Gage for tipping them off to the lucrative lawsuit. (Venger’s attorney says that number is too high.)

Patient 2 is Melodie Simon, a local schoolteacher, who went in for elective back surgery. She was operated on first by Thalgott, then Kabins. When there were complications, the doctors blamed anesthesiologist Burkhead, and she sued him. The indictment said she had a potential malpractice case against the surgeons, too. The surgeons’ attorneys dispute that.

With Pachas, it was about money.

With Simon, it was about doctors allegedly protecting themselves from being sued.

The twist: Venger and Thalgott, according to their attorney, George Kelesis, appalled by what they were seeing, went with him to the U.S. attorney’s office in May 2005, months before the ongoing federal investigation became public.

“They wanted to do the right thing,” Kelesis said.

Although they were there to report what they saw as wrongdoing, they learned a federal investigation was already in full swing, he said.

Venger and Thalgott testified before the grand jury earlier this year.

“There is no plea bargain, and they’re not going to be charged,” Kelesis said.

Although Kelesis won’t discuss their testimony, the indictment spells out the allegations in detail: fraud, kickbacks, deceit and a protection racket for physicians.

Las Vegas attorney David Chesnoff, who represents orthopedic surgeon Kabins, says it’s not so.

“Dr. Kabins hasn’t been identified as a target, and he’s not been called as a witness,” Chesnoff said. “Dr. Kabins emphatically denies he did anything other than try to be a caring and professional doctor.”

In the Simon case, Kabins “had no liability,” Chesnoff said. “She had been injured before he ever got to her.”

Chesnoff said Kabins has a reputation as a skilled surgeon who works long hours.

Kelesis also represents personal injury attorney Richard Harris.

In November 2005, after subpoenas for records went out, Harris said he dissolved his former law firm Mainor Harris because the other partners, including Robert Eglet and Randall Mainor, insisted on using Awand as a consultant in their cases.

Harris said he had concerns about Awand’s influence on the firm and wanted no part of him. Yes, Harris too is now a cooperating government witness, Kelesis said.

This is a hard case to follow, what with thousands of documents. But it’s not just about kickbacks or fee-splitting or avoiding malpractice cases.

Carlos Pachas and Melodie Simon are real people who, if the charges hold up, may have been lied to and sold out.

(Coming Thursday: More details on what the doctors allegedly did.)

Jane Ann Morrison’s column appears Monday, Thursday and Saturday. E-mail her at Jane@reviewjournal.com or call 383-0275.