Woman sues over handling of case

A woman who "begrudgingly" signed a 2005 plea deal to settle a personal injury case recently filed a lawsuit against the law firm that represented her and alleged it inflated her medical costs and received kickbacks from the medical provider.

The account detailed in the lawsuit filed by California resident Mary Jane Veirs is consistent with allegations that prompted a federal investigation into a scam involving Las Vegas doctors and lawyers.

Self-proclaimed medical consultant Howard Awand, who has been indicted in connection with the investigation, played a role in Veirs' 2002 personal injury case.

Veirs hired the law firm of Mainor Eglet Cottle after she fell and injured herself during an August 2001 stay at the Colorado Belle in Laughlin. Veirs needed surgeries, but according to the lawsuit, Veirs' attorneys told her not to seek medical treatment through her insurance provider, Blue Cross.

Instead, Viers' lawyers suggested that she enter into medical lien arrangements, which were to be paid off with some of the expected settlement money, the complaint said. Veirs said she followed her attorneys' advice.

Nevada Medical Investments, a company that was owned by Awand, bought the liens from the medical providers, which totaled $40,311, according to Veirs' complaint. When Veirs settled her personal injury lawsuit, Nevada Medical Investments charged her $234,000 to pay off the liens, Veirs complaint said.

Veirs told the Review-Journal last year that Awand sat in on the first meeting she had with the law firm, and her lawsuit alleges the attorneys duped Veirs into using the lien method of paying medical bills so that the lien holder and attorneys could collect a larger amount of money.

"This was done so that the defendant, medical provider and or medical lien holder could be compensated at a much higher rate than they would have been compensated had the plaintiff's treatment been billed through her insurance," Veirs' complaint alleges.

Veirs is acting as her own attorney. The lawsuit she filed alleges that Mainor Eglet Cottle "cajoled" her into settling her case for $1 million though Veirs wanted to go to trial.

When all of the bills were paid, only $138,000 of the $1 million settlement was left for Viers. Her attorneys' fees amounted to 40 percent of the settlement; the medical bills, which included the liens, exceeded $400,000, Veirs' complaint alleges.

The complaint alleges Veirs' medical costs would have been less than $200,000 if she had used her Blue Cross coverage.

"Defendant attorneys were well aware that plaintiff had medical coverage through Blue Cross and that much of her treatment that was medically necessary would have been paid for by her insurance," the lawsuit alleges. "With full knowledge of this, defendant attorneys sent plaintiff to said provider to treat plaintiff on a lien basis."

Veirs alleges that the law firm received a "kickback" from the lien holder or medical provider. The complaint alleges Mainor Eglet Cottle violated its attorney-client agreement by failing to tell Veirs of the money it received from the lien holder, the complaint alleges.

Attorney Walt Cannon represents Tracy Eglet, the lawyer who handled Veirs' personal injury lawsuit.

"We believe that when all the facts in this case come out, my client will be vindicated of each and every charge raised against her," Cannon said.

Awand is awaiting trial after being indicted last month in connection with a multimillion dollar scheme that included, according to federal court documents, paying kickbacks and boosting medical costs.

Awand conspired with doctors and lawyers to carry out their fraudulent scheme from about September 2001 until November 2003, his indictment alleges. A grand jury began investigating the scheme in November 2005. Awand is the only target whose name has been made public.

Awand "conspired with personal injury attorneys and healthcare providers to engage in a fraudulent scheme to inflate personal injury settlements and judgements to the detriment of the best interests of the clients they were hired to represent and serve," the indictment alleges.

The indictment also alleges that attorneys allowed Awand to buy their clients' liens at discounted prices.

"In fact, upon settlement or judgment, the co-scheming attorneys paid Awand the full value of the lien from the settlement or judgment," the indictment alleges.

"Co-scheming attorneys agreed not to negotiate, question or reduce liens purchased by Awand, thus allowing Awand to appropriate for himself the benefit of any discount."

Veirs, who did not return messages left on her cell phone, said last year she had been contacted by the FBI dozens of times about the case. Whether Veirs has testified before a federal grand jury is unclear.

Cannon said he does not know whether Eglet has received any notice that she was under federal investigation.

"I am not a criminal lawyer, and I have not talked to her about any criminal indictments or any criminal proceedings," he said. "I wouldn't be knowledgeable to address that at all."