EDITORIAL: Restitution lost

Some of the victims of Dipak Desai's massive health care fraud have been victimized again, courtesy of the U.S. attorney's office.

As is typical of the federal bureaucracy, no one will be held accountable. What else did you expect from government?

As reported by the Review-Journal's Jeff German, federal prosecutors weren't paying particularly close attention during sentencing proceedings for Tonya Rushing, who ran Desai's filthy endoscopy clinics. Desai, the ex-physician imprisoned for 27 criminal counts including second-degree murder, reused medical supplies and refused to properly sterilize equipment, in order to increase his practice's profits, resulting in a frightening outbreak of hepatitis C across Southern Nevada in 2007. Desai and Rushing charged patients and insurers as though they hadn't cut any corners, resulting in millions of dollars worth of overpayments.

Prosecutors had identified about $2.2 million in bogus charges to 600 businesses, an amount they intended to seek from Rushing as restitution. But at her May 4 sentencing, when U.S. District Judge Larry Hicks ordered Rushing to pay just $50,000 in restitution, prosecutors didn't object. The U.S. attorney's office still had 14 days to request more restitution, but didn't submit a response until June 2.

As a result, many defrauded companies may not receive any restitution at all. The $50,000 clearly wasn't a burden on Rushing, who has already paid in full. When her one-year prison sentence is completed, she'll be in the clear.

Nevada U.S. Attorney Daniel Bogden says this is Judge Hicks' fault.

"The plea agreement is clear that $50,000 was intended only as an initial payment to the approximately 600 victims harmed by defendants Desai and Rushing," Mr. Bogden said.

Perhaps if Mr. Bogden's office didn't waste so many resources trying to keep cases secret, his staff would be better prepared to handle the details that are right in front of them. Maybe he should buy the office a Keurig.

Restitution might yet be made through assets forfeited to the Justice Department. But that doesn't change the fact that Rushing essentially won the lottery — and that we're all poorer for it.