New allegations of tax evasion added

One of the central figures in an ongoing investigation of allegations of corruption involving doctors and lawyers is facing additional charges after he reportedly failed to pay taxes during a four-year period ending in 2004, according to court documents.

A 2008 criminal complaint initially filed against self-proclaimed medical consultant Howard Awand claimed he and wife Linda Awand did not pay their taxes in 2001 and 2002. A superseding complaint filed last week claims the couple also failed to pay taxes in 2003 and 2004.

Awand, local personal injury attorney Noel Gage and spine surgeon Mark Kabins face federal charges for their role in what federal prosecutors describe as a corrupt network of doctors and lawyers who designed a scheme to line their own pockets.

The government claims Awand was the mastermind of the scam to boost personal injury clients' medical costs, inflate legal settlements then split the proceeds from lucrative settlements. Prosecutors said the scheme unfolded between September 2001 and December 2003.

Charges against Awand and Gage were dismissed last year after the government refused to grant Kabins use immunity. Kabins was indicted earlier this year. The U.S. attorney's office appealed the dismissal, and the 9th U.S. Circuit Court of Appeals is scheduled to hear arguments Aug. 11.

Awand filed a request Tuesday to waive his appearance at an arraignment to enter a plea for the most recent tax-related charges.

According to court records, the Awands' company, Nevada Medical Consultants LLC, reported a total income of $1.2 million in 2001; $2.6 million in 2002; $2.7 million in 2003 and $2.5 million in 2004.

The couple listed their personal taxable income as $586,000 in 2001; $2.3 million in 2002; $1.6 million in 2003 and $2.4 million in 2004.

After learning of the federal investigation, the Awands began making payments to the Internal Revenue Service but they still owe about $2.5 million, according to court documents.

The complaint claims that while owing taxes, the Awands lived a lavish lifestyle, purchasing a mansion, buying luxury vehicles and tossing pricey parties. On a June 2005 loan application, the couple reported their monthly income was $83,333 and their net worth was about $4.38 million.

During Gage's trial, prosecutors discussed some of Awand's well-to-do lifestyle, questioning witnesses about fundraising parties at his Big Bear, Calif., house. Hospital executives, surgeons, personal injury attorneys and Nevada judges attended the lavish bashes, according to news reports.

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