Attorney Gage enters plea, avoids trial

When the federal fraud and conspiracy case against him was dismissed two years ago, lawyer Noel Gage held a victory party.

When a federal appeals court revived the case in August, Gage predicted an acquittal and another victory party.

Yet on the eve of his trial Tuesday, the 71-year-old reversed course and entered a plea to obstructing justice, one of seven charges he would have faced at trial alongside medical consultant Howard Awand.

Gage made what is known as an Alford plea, which allows him to maintain his innocence while acknowledging the government has enough evidence to convict him.

"Noel Gage has made a decision that is in the best interest of his family," lawyer Pamela Johnston said in a statement. "His family has been subjected to the unending and sensational media coverage of this matter. ... Now he and his family can move on."

The obstruction of justice charge stemmed from three checks totaling $1.1 million that Gage did not turn over under subpoena by a grand jury. The checks were made out to Awand's companies.

Gage explained there was a mistake in failing to collect the checks from his accountant's office, according to his lawyer's statement.

According to federal sentencing guidelines, Gage could receive 15 to 21 months in prison. However, his attorneys say mitigating factors could reduce his sentence to a zero to 6-month range.

Sentencing was set for June 3.

Gage also will repay $702,600 in legal fees to his former client, Melodie Simon, who was paralyzed after spine surgery involving Dr. Mark Kabins and other doctors.

"We believe this agreement serves the ends of justice," prosecutor Steve Myhre said.

Gage and Awand were accused of conspiring to cheat injured clients by inflating medical costs, protecting doctors from malpractice lawsuits, and sharing kickbacks from legal settlements.

Gage initially went to trial in the case in March 2008, but the jury deadlocked.

Senior U.S. District Judge Justin Quackenbush of Spokane, Wash., who presided over the Las Vegas trial, later dismissed the charges against Gage and Awand after prosecutors refused to grant limited immunity to Kabins.

A grand jury in December indicted Gage and Awand on charges related to Simon's case.

Quackenbush commended the plea agreement, saying it "will bring to an end the uncertainty and emotional times that Ms. Simon has endured."

Kabins pleaded guilty last month to failing to report a crime and received five years of probation. He also will pay $3.5 million to Simon.

Awand was scheduled to change his plea in the case on March 8.

Gage, who has been critical of the government's case, declined to comment after the hearing.

Contact reporter Brian Haynes at bhaynes@reviewjournal.com or 702-383-0281.