Immunity issue spurs judge to delay Gage trial

U.S. District Judge Justin Quackenbush filed an order Wednesday to postpone the new trial of personal injury attorney Noel Gage, who is accused of conspiring with a network of doctors and lawyers to defraud clients and pad their own pockets.

Quackenbush said last week that he would drop the charges against Gage if the government did not offer immunity to Dr. Mark Kabins, a physician Gage's attorneys say could be a key witness. The U.S. Attorney's Office refused to grant immunity, but Quackenbush has yet to drop the charges against Gage.

The government filed a lengthy objection to Quackenbush's immunity request on Friday, the deadline he set for the offer to Kabins.

Quackenbush indefinitely delayed the trial until he decides whether to drop the charges or support the government's request not to grant immunity.

"Following the completion of briefing on the pending and any future motion, and argument, if requested, the court will set a new retrial date, if appropriate," Quackenbush wrote in his Wednesday order.

Quackenbush declared a mistrial in April after the jury could not reach a verdict on the charges against Gage.

Gage is accused of belonging to a tight crew of doctors and lawyers who inflated medical costs to boost the amount rendered in legal settlements. The doctors were protected by the attorneys from medical malpractice lawsuits, and the members of the network shared profits from the scheme, the government claims.

Prior to Gage's trial, the government granted immunity to surgeons Dr. John Thalgott and Dr. Ben Venger, each of whom testified against Gage.

Gage's attorneys believe Kabins' testimony will contradict that of Thalgott on a matter related to Gage's one-time client, Melodie Simon. Thalgott and Kabins performed a routine back surgery on Simon in 2000. After the operation, Simon began feeling weakness in her legs. Thalgott said that a sac protecting Simon's spine had been punctured at some point and that internal bleeding was causing the paralysis.

Thalgott left for vacation the day after the surgery. The government claims it took Kabins 11 hours to perform emergency surgery to release the pressure in Simon's back.

Thalgott testified that he, Kabins and Gage held a private meeting to discuss the case. They agreed to blame Simon's paralysis on the anesthesiologist.

Rather than the $8 million to $12 million settlement Gage initially told Simon she could secure, she received $2.3 million. After attorney's fees and associated costs, she received $1.3 million.

Thalgott indicated that Gage promised the physicians they would not be sued. The government claims such a promise was possible because they all belonged to the network. Gage's attorneys believe Kabins will testify that no such promise was made.

Kabins requested immunity, meaning his statements could not be used against him at trial; the government could use Kabins' information only to further the investigation.

Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-384-8710.