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Updated: Tuesday, 4:25 p.m. -- U.S. District Judge Sean Cox issued a written ruling this afternoon declaring that jailed Dr. Farid Fata must post a $9 million bond to go free. He has been in jail since his arrest last Tuesday on charges that he bilked Medicare by misdiagnosing patients and giving them unnecessary treatments, including chemotherapy.
The ruling comes after a morning hearing (details below). The prosecution had argued that the doctor had access to large amounts of cash and might flee before trial, possibly to his native country of Lebanon.
"While the defendant has no prior criminal history, the Government has established that the Defendant has a motive, and the means, to flee the country," Judge Cox wrote..."Defendant also has significant ties to another country to which he could flee -- Lebanon."
If money is posted for the bond, there will be a hearing to determine if it comes from legitimate means. If released, the doctor will not be able to practice medicine or write prescriptions pending trial.
The doctor's attorney Christopher Andreoff told Deadline Detroit: "I'm very disappointed." He said he planned to review the judge's order, meet with his client and decide whether an appeal to the Court of Appeals is in order.
By Allan Lengel
Clad in drab green prison garb, Dr. Farid Fata was being escorted out of the courtroom in handcuffs Tuesday morning after a bond hearing in federal court in Detroit when a patient shouted: "We love you Dr. Fata."
"He's a very dignified man, and has the most integrity," Sally Kelley, a cancer patient of the doctor said outside the second-floor courtroom. "He lives for his family and his patients."
Monster or savior? Certainly monster if you ask the government, which claims the doctor misdiagnosed people with cancer, gave medically unnecessary treatment, including chemotherapy, and bilked Medicare out of millions.
Savior, if you ask folks like Sally Kelley.
On Tuesday, Justice Department prosecutor Catherine K. Dick and Fata's attorney Christopher Andreoff, argued before U.S. District Judge Sean Cox over the amount of bond for Dr. Fata, who has been jailed since his arrest one week ago.
U.S. Magistrate Judge David Grand had set bond last week at $170,000. But the government, insisting that he's a flight risk, pushed for a $9 million bond, saying that amount reflected the assets Fata had access to.
After hearing the arguments, and listening to a contract FBI agent testify about Dr. Fata's assets, the judge announced that he would make a decision on his bond by day's end.
The case has grabbed the attention of the public, and has put in the spotlight the very delicate and trusting bond doctors often have with their patients.
And while in Southeast Michigan, there is no shortage of Healthcare Fraud, this case seems to take a different twist. In many other cases, doctors and healthcare specialists have defrauded Medicare by billing for non-existent patients , non-existent treatments or unnecessary tests. But in this case, the government is alleging that Dr. Fata billed for medically unnecessary treatments, some of which may have seriously harmed patients. Some people have even claimed the treatment killed relatives.
Prosecutor Dick said the doctor was a danger to the community and needed to stop practicing medicine, even if he's let out on bond.
Authorities say that Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park.
The hearing Tuesday focused on the testimony John Scarbrough, a contract agent with the FBI and a former veteran of the agency, who was tracing Dr. Fata's funds. The government has argued that the the doctor might grab all his funds and flee, possibly to his native Lebanon.
Scarbrough testified that the government had seized about $7 million in cash of Fata's, plus put a lien on about $2 million in property. But he said the doctor still had access to about $9.4 million, which the government had yet to determine if it was linked to fraudulent Medicare payments.
Andreoff argued that the much of those assets were subject to tax penalties and regulations which made it difficult for the doctor to have access. He also said Dr. Fata had a relative who was ready to post $170,000 for the bond.
Outside the courtroom, after the proceeding, another supporter of the doctor, Theresa Pickerin, a throat cancer patient, who was wearing a "Cancer Sucks" t-shirt said :"We love him. We believe in him."
A ruling is expected to come this afternoon in the form of a written opinion.
