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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

HONORABLE PAUL D. BORMAN

v. No. 14-20779

No. 15-20311

ARIA OMAR SABIT,

Defendant.

___________________________/

EXCERPTS OF PLEA HEARING

Friday, May 22, 2015

4:10 p.m.

APPEARANCES:

For the Plaintiff: REGINA R. MCCULLOUGH

PHILIP A. ROSS

U.S. Attorney's Office

211 West Fort Street

Suite 2001

Detroit, Michigan 48226

(313) 226-9100

JONATHAN BAUM

U.S. Department of Justice

1400 New York Avenue NW

Washington, D.C. 20005

(202) 230-8655

(Appearances continued)

To Obtain Certified Transcript, Contact:

Leann S. Lizza, CSR-3746, RPR, CRR, RMR

(313) 965-7510

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APPEARANCES (Continued):

For the Defendant: TIMOTHY M. LESSING

Freedman, Lessing, Kutinsky &

Freedman, P.C.

6304 Orchard Lake Road

West Bloomfield, MI 48322

(248) 353-6300

JOSEPH A. NISKAR

23023 Orchard Lake Road

Suite A-1

Farmington, Michigan 48336

(248) 941-4287

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TABLE OF CONTENTS

Page

Plea hearing

California indictment

Michigan indictment

4

11

22

Exhibits: Received

(None offered.)

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PLEA HEARING

USA v. SABIT, 14-20779/15-20311

4

May 22, 2015

Detroit, Michigan

- - -

(Call to order of the Court, 4:10 p.m.)

(Court, Counsel and Defendant present.)

THE COURT CLERK: Now calling the case of United

States of America versus Aria Omar Sabit, M.D., Case Numbers

14-20779 and 15-20311.

THE COURT: Okay. Parties please identify themselves

for the record beginning with the government.

MS. MCCULLOUGH: Good afternoon, Your Honor. May it

please the Court, Regina McCullough appearing on behalf of the

United States.

MR. ROSS: Philip Ross, forfeiture counsel, appearing

on behalf of the United States.

MR. BAUM: Jonathan Baum appearing on behalf of the

United States.

THE COURT: Okay.

MR. LESSING: Good afternoon.

THE COURT: Very good. Good afternoon, sir.

MR. LESSING: Good afternoon, Your Honor. Timothy

Lessing appearing on behalf of Mr. Aria Sabit who is to my

right.

THE COURT: Good afternoon, Dr. Sabit.

MR. NISKAR: May it please the Court, Joseph Niskar on

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behalf of Dr. Sabit.

THE COURT: Very good. Have a seat for a minute. Let

me just put things together here.

Should we take the forfeiture bill of particulars

first? That would seem to be getting that out of the way.

MR. NISKAR: No objection to that.

THE COURT: Okay. Then why don't you and your client

come to the podium and we'll proceed.

Why don't you proceed, Mr. Ross, and then we'll go

over it with Dr. Sabit and his attorneys.

MR. ROSS: Thank you, Your Honor.

As part of the Rule 11 plea agreement, the Defendant

has agreed to forfeit proceeds from the private sale of the

home at 3645 Lahser Road in Bloomfield Hills. That property

description is included on page 25 of the Rule 11 plea

agreement.

Also on page 25 of the Rule 11 plea agreement, the

Defendant has entered into an agreement to forfeit funds from

four separate bank accounts that are listed, three at Comerica

and one at PNC.

Also, with respect to the forfeiture, the Defendant

has waived any challenge he may have that the forfeiture

constitutes an excessive fine under the Eighth Amendment. He

also agrees to enter a number of documents related to the

forfeiture at or before sentencing, and he understands that

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forfeiture is part of the sentence and that he waives his right

to have that included in the judgment or orally pronounced at

the time of sentencing.

THE COURT: Okay. Counsel, which one of you will be

representing Dr. Sabit on this forfeiture matter?

MR. LESSING: Mr. Niskar will, Your Honor.

MR. NISKAR: I will, Your Honor.

THE COURT: Okay. Mr. Niskar, have you gone over this

forfeiture bill of particulars with Dr. Sabit?

MR. NISKAR: I have.

THE COURT: Okay. Dr. Sabit, have you gone over the

forfeiture bill of particulars with Mr. Niskar?

THE DEFENDANT: I have.

THE COURT: And you understand that you're going to

forfeit the home on Lahser Road in Bloomfield Hills. Is that

correct, sir?

MR. NISKAR: He's forfeiting his interest in the

proceeds.

THE COURT: Okay. Your interest in the proceeds of

the home?

MR. NISKAR: That's right.

THE COURT: The home will be sold; is that what you're

saying?

MR. NISKAR: Yes.

THE COURT: And you're also forfeiting your interest

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in the four bank accounts, three at Comerica and a fourth at

PNC. Is that correct, Doctor?

THE DEFENDANT: It is.

THE COURT: Okay. Mr. Ross, are there any questions

that you want to further ask to establish a factual basis

additionally with regard to the forfeiture?

MR. ROSS: No, Your Honor.

THE COURT: Okay. Then I will -- if you'll present an

order, then I will sign that. It is on the record.

MR. ROSS: Thank you, Your Honor.

THE COURT: Okay. Then let us proceed to the other

matter. My understanding, Mr. Niskar and Mr. Lessing, is that

your client wishes to enter pleas as to two separate

prosecutions, one here and the other from the Central District

of California. Is that correct?

MR. NISKAR: That is correct.

MR. LESSING: That's correct, Your Honor.

THE COURT: Okay. Ms. Tofil, if you'd please swear in

Dr. Sabit, we'll proceed.

THE COURT CLERK: Raise your right hand.

(Dr. Aria Sabit, sworn, 4:14 p.m.)

THE COURT: Okay. Dr. Sabit, I'm going to question

you regarding the facts of the crimes charged. It's important

that you tell the truth. You understand that, sir?

THE DEFENDANT: I do.

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THE COURT: Okay. Any false answers can be used

against you in a separate prosecution for perjury, so it's

important to tell the truth. You understand?

THE DEFENDANT: I do.

THE COURT: Okay. What is your full name?

THE DEFENDANT: Aria Omar Sabit.

THE COURT: Okay. You understand that you have a

constitutional right to remain silent and not incriminate

yourself?

THE DEFENDANT: I do.

THE COURT: And you want to give that up and plead

guilty today; is that correct, sir?

THE DEFENDANT: Yes.

THE COURT: First I'm going to ask some background

questions to assure that you're competent to enter a plea at

this time. How old are you, sir?

THE DEFENDANT: 39.

THE COURT: And how far did you go in school?

THE DEFENDANT: Medical school.

THE COURT: Okay. Do you read, write and understand

the English language?

THE DEFENDANT: I do.

THE COURT: Are you now under the influence of any

medication, drugs or alcohol?

THE DEFENDANT: I'm not.

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THE COURT: I find that Dr. Sabit is capable of

entering a knowing plea. Do you agree, Mr. Niskar?

MR. NISKAR: I agree.

THE COURT: Do you agree, Miss McCullough?

MS. MCCULLOUGH: Yes, Your Honor.

THE COURT: You have your attorneys beside you in

court today. Have you discussed this matter with them?

THE DEFENDANT: Yes.

THE COURT: Are you satisfied with their advice and

service?

THE DEFENDANT: I am.

THE COURT: Do you understand that if your guilty plea

is accepted, you give up valuable civil rights, such as the

right to vote, hold office, serve on a jury, possess or be

around firearms. You understand that?

THE DEFENDANT: I do.

THE COURT: Okay. If I accept your plea of guilty,

you give up many important constitutional rights, and I'll go

over some of the most important to make sure you understand

what you're giving up.

You understand, sir, that you have the right to plead

not guilty and to have a trial before the Court or a jury of 12

citizens?

THE DEFENDANT: I do.

THE COURT: You understand at trial you'd be presumed

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innocent and the government would have to prove you guilty

beyond a reasonable doubt. You understand that, sir?

THE DEFENDANT: Yes.

THE COURT: Also at trial, you could question

witnesses against you through your attorneys and have the Court

order any witnesses you want for your defense to appear at

trial. You understand that, sir?

THE DEFENDANT: I do.

THE COURT: Also at trial you could remain silent

during the trial, not have your silence used against you or

testify if you want to testify. You understand that?

THE DEFENDANT: I do.

THE COURT: Understanding these rights, do you want to

give them up and plead guilty today?

THE DEFENDANT: I do.

THE COURT: Okay. Have you received copies of the

indictments, the charges against you, in this case?

THE DEFENDANT: Yes, I have.

THE COURT: There's one from California and one from

Southern Division of Michigan. And I presume that the doctor

has been arraigned on both indictments?

MR. NISKAR: He was this afternoon.

MS. MCCULLOUGH: Your Honor --

MR. NISKAR: I'm sorry.

MS. MCCULLOUGH: Just for the record, they are

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PLEA HEARING

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informations, Your Honor, and he was arraigned this afternoon

on both informations and did execute a waiver of indictment.

THE COURT: Okay. So we have an information from

California that's CR-0258. That's the California number. And

the number here is 15-20311. Is that correct?

MS. MCCULLOUGH: That's correct, Your Honor.

MR. LESSING: That's correct.

THE COURT: And the Michigan one is 14-20779. Is that

correct?

MS. MCCULLOUGH: That is correct, Your Honor.

THE COURT: Okay. Then, first, with regard to the

Rule 11, let me just look at it. The counts of conviction in

the Michigan case will be Counts 1, 2, 3, 4 and 5 of the first

superseding information. Is that correct, Miss McCullough?

MS. MCCULLOUGH: That's correct.

THE COURT: Is that correct, Mr. Niskar?

MR. NISKAR: That is correct.

THE COURT: And the California information, the plea

would be to Count 1 of the information; is that correct?

MS. MCCULLOUGH: That is correct, Your Honor. And

with respect to the California case, Jon Baum will be handling

that aspect of the case, Your Honor.

THE COURT: Okay. Very good.

Then in terms of explaining the charges against the

Defendant, why don't we start with Mr. Baum going over the

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charge to which the Defendant is going to plead guilty in the

California case, and then Miss McCullough will go over the

charges to which the Defendant is going to plead in the

Michigan case, so.

MR. BAUM: Your Honor, the Defendant has been charged

in Count 1 of the criminal information in Case Number 15-20311

with one count of conspiracy to commit health care fraud in

violation of Title 18 United States Code Section 1349.

THE COURT: Okay. A little bit louder would help and

a little slower would help Ms. Lizza too. Thank you.

MR. BAUM: The statutory -- the statutory maximum

penalty for Count 1 is 20 years imprisonment, a fine of

$250,000 or twice the pecuniary gain, or loss, pursuant to

Title 18 United States Code Section 3571 and a three-year term

of supervised release.

THE COURT: Okay. You understand, Doctor, those are

the charges against you on the California case?

THE DEFENDANT: I do.

THE COURT: Can you also explain what the conduct is

in that count that you're alleging Dr. Sabit committed, in

terms of it can be a summary because I would presume that he's

gone over the matter completely with his attorneys. Is that

correct, Mr. Niskar?

MR. NISKAR: That's correct.

THE COURT: Mr. Lessing?

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MR. LESSING: Yes.

THE COURT: Okay.

MR. BAUM: I will provide the Court with a summary,

Your Honor.

THE COURT: Okay.

MR. BAUM: Prior to moving to Michigan, Dr. Sabit was

a resident of Ventura, California, within the Central District

of California.

THE COURT: That's V-E-N-T-U-R-A.

MR. BAUM: Yes, Your Honor.

Dr. Sabit was also a licensed neurosurgeon in

California. In approximately February, 2010, Dr. Sabit became

involved with Apex, A-P-E-X, Medical Technologies, LLC while he

was on the staff of a California hospital.

Apex was owned by another neurosurgeon and three

nonphysicians who operated Apex as a physician-owned

distributorship and paid neurosurgeons lucrative illegal

kickbacks tied directly to the volume and complexity of the

surgeries that the surgeons performed and the number of Apex

spinal implant devices that the surgeons used in their spine

surgeries.

In exchange for an opportunity to invest in Apex and

share in its profits, Dr. Sabit agreed to convince his hospital

to buy spinal implant devices from Apex and use a sufficient

number of Apex spinal implant devices in his spine surgeries.

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Dr. Sabit and Apex's co-owners used Apex to operate an illegal

kickback scheme. In doing so, they, among other things,

concealed Dr. Sabit's involvement in Apex from outsiders.

Dr. Sabit then required the hospital and surgical centers where

he and his fellow neurosurgeons performed surgeries to purchase

spinal implant devices from Apex.

Dr. Sabit's involvement in Apex and the financial

incentives provided to him by Apex and his co-conspirators at

times caused him to compromise his medical judgment and cause

serious bodily injury to his patients by performing medically

unnecessary spine surgeries on some of his patients in whom he

implanted Apex spinal implant devices. On a few occasions, the

money that Dr. Sabit made from using Apex spinal implant

devices motivated him either to refer patients in for spine

surgery who did not need surgery or refer his patients for more

complex surgeries, such as multilevel spine fusions, which the

patients did not need.

The financial incentives provided to Dr. Sabit by Apex

and his co-conspirators at times caused him to overinstrument

his patients or use more spinal implant devices than were

medically necessary to treat his patients in order to generate

more sales revenue for Apex which also resulted in serious

bodily injury to his patients.

All of the surgeries that Dr. Sabit performed using

Apex spinal implant devices were predicated on illegal

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kickbacks and false statements which made all those claims

false and fraudulent.

THE COURT: Okay. Doctor, you understand what the

charge is against you?

THE DEFENDANT: I do.

THE COURT: Okay. Is your willingness to plead guilty

with regard to this charge, we'll take this one first, under

the Rule 11 plea agreement -- have you been coerced to plead

guilty?

THE DEFENDANT: I have not.

THE COURT: You understand the maximum period of

incarceration under the statute and also the maximum fine

possibility. You understand that?

THE DEFENDANT: I do, Your Honor.

THE COURT: Okay. And then, also, there would be a

period of supervised release following any incarceration. You

understand that?

THE DEFENDANT: I do.

THE COURT: And, Mr. Baum, did we talk about the

period of supervised release?

MR. BAUM: I believe I mentioned that the period of

supervised release for this offense was three years, Your

Honor.

THE COURT: Okay. So you understand after any

incarceration, you're out on supervised release and at that

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point if you violate that, you could be brought back and sent

to jail for up to another three years. You understand that?

THE DEFENDANT: I do, Your Honor.

THE COURT: Okay. So you are pleading guilty pursuant

to a Rule 11 plea agreement that came about after discussions

between you, your attorneys and the attorneys for the

government; is that correct?

THE DEFENDANT: That is.

THE COURT: Okay. Let me just look at the documents.

Under the total Rule 11 plea agreement, the guideline

range -- counsel for the government can help me, as well as

counsel for Defendant -- guidelines are but one factor among

many the Court takes into account at the time of sentencing,

but the guideline range is 108 to 135 months. Is that correct?

MS. MCCULLOUGH: Yes, Your Honor.

MR. NISKAR: Yes, Your Honor.

MR. LESSING: Yes, Your Honor.

THE COURT: There's also going to be a special

assessment on all the counts, we can take that at one time, and

that's $600, a hundred dollars for each count. Understand

that, Doctor?

THE DEFENDANT: I do.

THE COURT: And there's also a provision with regard

to restitution to identifiable victims of your offense. You

understand that, sir?

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THE DEFENDANT: I do, Your Honor.

THE COURT: There's also an exclusion from the

Medicare program, other federal health care programs if you

plead guilty under this Rule 11. Do you understand that,

Doctor?

THE DEFENDANT: I do, Your Honor.

THE COURT: And if the Court accepts the Rule 11, then

the government will dismiss all remaining charges in this case.

Do you understand that?

THE DEFENDANT: I do.

THE COURT: And that's correct?

MS. MCCULLOUGH: Yes, Your Honor.

THE COURT: In entering this agreement, this does not

compromise, which means prevent, the government from seeking

any civil liability or administrative remedies against you.

You understand that?

THE DEFENDANT: I do.

THE COURT: If I sentence you within the guideline

range set forth before, then you waive any right to appeal the

conviction or sentence. You understand that?

THE DEFENDANT: I do.

THE COURT: Except if there is the claim of

ineffective assistance of counsel, then that is not waived on a

basis for appeal. You understand that?

THE DEFENDANT: I do.

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THE COURT: And that's correct, Mr. Baum and

Miss MacIntyre (sic), based on Attorney General Holder's

statement, correct?

MS. MCCULLOUGH: Correct, Your Honor.

MR. BAUM: Yes, Your Honor.

THE COURT: And you understand the guidelines are but

one of multiple factors the Court takes into account at the

time of the sentencing under the statute. You understand that,

sir?

THE DEFENDANT: I do, Your Honor.

THE COURT: Does the counsel for Defendant wish to

place any further 11, Rule 11 provisions, on the record with

regard to the California indictment?

MR. NISKAR: May I just have one second?

THE COURT: Sure.

(Short pause.)

MR. NISKAR: Nothing further as to the California

information.

THE COURT: Okay. With regard to -- we already went

over what's covered in the Rule 11 plea agreement. Apart from

that, have I made you any promises of any sentence?

THE DEFENDANT: You have not.

THE COURT: Are there any side deals where your

attorneys or the government attorney said, "Forget about what

you say on the record but something else is going to happen"?

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You haven't got anywhere people promised you things other than

what is placed on the record here?

MR. NISKAR: Your Honor, may we approach?

THE COURT: Sure.

(Whereupon a sealed bench conference was held.)

THE COURT: Let me ask you again, did anyone threaten

or coerce you to plead guilty?

THE DEFENDANT: They did not.

THE COURT: Are you pleading guilty freely or

voluntarily because you believe you are guilty?

THE DEFENDANT: I am, Your Honor.

THE COURT: Right now are you under probation, parole

or inmate status for any other offenses besides what's charged

here?

THE DEFENDANT: I'm not, Your Honor.

THE COURT: Okay. Please tell me what it is that you

did during the period in California that leads you to believe

you're guilty of the offense of conspiring to commit health

care fraud.

THE DEFENDANT: I conspired with one other

neurosurgeon and three other people to perform surgeries that

were sometimes overinstrumented using a Apex brand of screws

which resulted in illegal kickback scheme.

THE COURT: Okay. Mr. Baum, do you want to ask

further questions to further establish a factual basis?

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MR. BAUM: Yes.

THE COURT: Oh, first, what location, what city or

state, did this take part?

THE DEFENDANT: This was in Ventura, California.

THE COURT: That's the Central District of California.

And what period of time are we talking about?

THE DEFENDANT: From 2010.

THE COURT: Okay.

Proceed, Mr. Baum.

MR. BAUM: Dr. Sabit, were you part of Apex Medical

Technologies between approximately February, 2010, through

August of 2012?

THE DEFENDANT: I was.

MR. BAUM: And between approximately February of 2010

and March of 2011 were you in the Central District of

California?

THE DEFENDANT: I was.

MR. BAUM: In approximately March of 2011 through

approximately August of 2012 were you in the Eastern District

of Michigan?

THE DEFENDANT: I was.

MR. BAUM: During that time period did you perform

surgeries both in the Central District of California and the

Eastern District of Michigan on patients using Apex spinal

implant devices?

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THE DEFENDANT: I did.

MR. BAUM: Was your use of Apex spinal implant devices

in every surgery that you performed using those devices

predicated on illegal kickbacks?

THE DEFENDANT: Yes.

MR. BAUM: Were they also predicated on false

statements that were made to the Medicare program that you were

going to be compliant with all Medicare rules and regulations

including compliance with the Antikickback Statute?

THE DEFENDANT: Yes.

MR. BAUM: During your -- did your involvement in Apex

Medical Sup -- or Technologies incentivize you to perform

medically unnecessary surgeries at times on your patients?

THE DEFENDANT: Yes.

MR. BAUM: Did your involvement in Apex Medical

Technologies at times incentivize you to overinstrument your

patients?

THE DEFENDANT: Yes.

MR. BAUM: Did your -- and as a result of you

performing medically unnecessary surgeries on your patients and

using more -- or overinstrumenting your patients, did you at

times cause serious bodily injury to your patients?

THE DEFENDANT: I did.

MR. BAUM: No further questions, Your Honor.

THE COURT: Okay. Does defense counsel wish to ask

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further questions to establish a factual basis?

MR. NISKAR: No. We're satisfied.

MR. LESSING: We're satisfied, Your Honor.

THE COURT: Okay. Thank you.

How do you plead, sir?

THE DEFENDANT: I plead guilty, Your Honor.

THE COURT: The Court finds the Defendant's plea as to

the California indictment is knowingly, freely and voluntarily

made. The elements of the offense to which he pleads guilty

have been made out by his statements in court. The Court will

accept the plea, take the Rule 11 under advisement.

And now let's proceed to the Michigan indictment.

That charges basically -- tell us, Miss --

MS. MCCULLOUGH: Yes, Your Honor.

THE COURT: Thank you.

MS. MCCULLOUGH: That charges -- Counts 1 through 4 of

the first superseding information charges the Defendant with

the violation of 18 U.S.C. Section 1347 which is substantive

counts of health care fraud. Count 5 charges the Defendant

with unlawful distribution of a controlled substance in

violation of 21 U.S.C. Section 841(a)(1).

Your Honor, the penalties for Counts 1 through 4 are

up to 20 years imprisonment, a $250,000 fine and at least two

years of supervised release. The penalties with respect to

Count 5 are a million dollar fine and a lifetime term of

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supervised release. The parties have negotiated --

THE COURT: There is no incarceration period connected

to Count 5?

MS. MCCULLOUGH: Yes, Your Honor. I apologize. Up to

20 years as well.

THE COURT: Okay. Okay.

MS. MCCULLOUGH: And the parties have negotiated, Your

Honor, a lifetime term of supervised release to be imposed with

respect to Count 5.

With respect to particular supervised release term,

the Defendant has agreed to be restricted from any employment

in any capacity in the medical profession. That restriction

will cover the practice of medicine, owning and operating a

medical clinic, conducting any medical research, consulting as

an expert, manufacturing or participating in the manufacturing

of any medical devices, membership in any physician-owned

distributorship and any employment in any capacity in any

medical facility. And those are the penalties, Your Honor,

with respect to Counts 1 through 4 and Count 5.

Would the Court like me to summarize the charges?

THE COURT: Please.

MS. MCCULLOUGH: Your Honor, Defendant, as I've

already stated, is pleading guilty to the first superseding

indictment, and it charges the Defendant with four counts of

health care fraud.

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THE COURT: Information.

MS. MCCULLOUGH: Information, yes.

THE COURT: Okay. Thanks.

MS. MCCULLOUGH: Thank you, Your Honor.

With respect to that information, the Defendant

engaged in a scheme and artifice to defraud Medicare, Medicaid

and private insurance companies by convincing his patients to

undergo spinal fusion surgeries with instrumentation which he

never rendered then billing private and public health care

benefit programs for these fraudulent services.

As part of the scheme, Your Honor, Dr. Sabit would

operate on patients and dictate that he had performed a spinal

fusion surgery with instrumentation which was never rendered.

This invasive surgery would cause serious bodily injury to some

of his patients. Sabit's operative reports and treatment

records contained false statements about the procedure

performed and the instrumentation used in the procedure.

Your Honor, on occasion Dr. Sabit dictated that he

placed screws which, in fact, he did not place. Counts 1

through 4 specifically outline four patients that underwent

these procedures. Would the Court like me to go through each

specific count?

THE COURT: Well, let me just ask. Mr. Niskar,

Mr. Lessing, did you go over the particular names of the -- or

the initials of the patients and where it was performed and

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what specifically was violated under the law in terms of the

instrumentation and lack of instrumentation?

MR. LESSING: We did, Your Honor. We went through it

with Dr. Sabit in detail.

THE COURT: Okay, then. Is that correct, Doctor, you

have gone over that with them?

THE DEFENDANT: It is, Your Honor.

THE COURT: Then I don't think we need for you to go

over that now. We'll just deal as we get to each count --

MS. MCCULLOUGH: Thank you, Your Honor.

THE COURT: -- as to what he did.

MS. MCCULLOUGH: And as to Count 5, Your Honor?

THE COURT: Yes.

MS. MCCULLOUGH: The information charges Defendant on

October 22nd of 2012, Dr. Sabit did knowingly, intentionally

and unlawfully distributed Schedule II prescription drug

controlled substance, specifically Roxicodone, oxycodone, HCl,

30 milligrams. Dr. Sabit committed offense by writing a

prescription for a Schedule II controlled substance for no

legitimate medical purpose and then he transferred the

prescription to Patient 5 to be filled.

THE COURT: Okay. And you explained that to your

client as well, Mr. Lessing and Mr. Niskar?

MR. LESSING: Yes, Your Honor.

MR. NISKAR: Yes, Your Honor.

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THE COURT: Is that correct, Doctor?

THE DEFENDANT: That is correct.

THE COURT: Then let's proceed to the various counts.

The same Rule 11 applies with regard to the guideline,

sentencing guidelines.

MS. MCCULLOUGH: They do, Your Honor, and if I may

just go over paragraph 7 of that Rule 11 plea agreement.

THE COURT: Sure.

MS. MCCULLOUGH: The Court noted that there -- the

government could pursue civil liability. The bottom portion of

paragraph 7 of the Rule 11 pertains to civil liability for two

cases pending out of California. And, Your Honor, with respect

to those two cases only, the parties have agreed there will not

be a restitution order entered with respect to those civil

cases.

THE COURT: Okay. And is that correct, Mr. Niskar,

Mr. Lessing? Sure.

MR. LESSING: Just one moment, Your Honor.

THE COURT: Okay.

MR. NISKAR: May we have one second?

THE COURT: Sure.

(Short pause.)

MS. MCCULLOUGH: Your Honor, if we could just have one

moment. I apologize.

THE COURT: Yeah, that's fine.

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(Discussion held off the record between counsel at

4:42 p.m.)

MR. NISKAR: Just one second, Your Honor. We're

making a change.

THE COURT: Okay.

(Short pause.)

MR. LESSING: Your Honor, you have the original copy

of the --

THE COURT: I believe there it is.

MR. LESSING: Great. We're going to need to make a

quick change.

THE COURT: That's fine.

(Short pause.)

MR. LESSING: Thank you for your patience, Your Honor.

THE COURT: No problem.

MS. MCCULLOUGH: Your Honor, with respect to

paragraph 7, the parties have amended it to state specifically:

In light of the parties' intention to resolve all pertinent

pending civil actions including United States versus Reliance

Medical Systems and United States ex rel. versus -- Savitch

et al. --

THE COURT: S-A-V-I-T-C-H, right.

MS. MCCULLOUGH: Yes. The parties agree that there

will not be a separate restitution order as to the Defendant,

Dr. Sabit, as part of the resolution of the above referenced

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cases. And the parties agree that the appropriate disposition

of the civil cases does not include civil judgments. And all

parties initialed, Your Honor.

THE COURT: Okay.

MR. LESSING: And for the record, Dr. Sabit has signed

that paragraph.

THE COURT: You've read that and you understand that,

Doctor?

THE DEFENDANT: I do.

THE COURT: Okay. Very good.

MS. MCCULLOUGH: Thank you, Your Honor. We appreciate

that time.

THE COURT: No problem. Then let us proceed to the

various counts and to the -- let's go to the first count that

relates to, I believe that's Patient Number 1 who underwent

spinal surgery around February of 2012, and in the report that

you purportedly performed procedures, performed a fusion with

instrumentation at the L4-L5 and S1 levels and utilized, you

stated, the Zimmer, Z-I-M-M-E-R, transfacet,

T-R-A-N-S-F-A-C-E-T, screw system when, in fact, that you did

not place that medical device and, nevertheless, caused billing

to get $26,067 for that surgery and submitted the claims.

How do you plead as to that count, sir?

THE DEFENDANT: Guilty.

THE COURT: Okay. Please tell me what it is that you

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did in around February, 2012, that leads you to believe you're

guilty of that count.

MR. NISKAR: One second, please.

(Discussion held off the record between the Defendant and

counsel at 4:49 p.m.)

THE DEFENDANT: Your Honor, on February 29, 2012, I

operated on a patient. In my dictation I stated I --

THE COURT: A little louder, a little slower because

Ms. Lizza has to take down every word, so slower. Thanks.

THE DEFENDANT: In my dictation I stated that I used a

Zimmer transfacet screw. I did not use a transfacet screw, and

I did not perform a fusion using a Zimmer transfacet screw. I

dictated a note stating that I had done the above and submitted

that as a bill.

THE COURT: And you got paid by Medicare, Medicaid?

THE DEFENDANT: That is correct.

THE COURT: Any questions you want to -- and this was

in what city?

THE DEFENDANT: This was in Pontiac, Michigan.

THE COURT: Okay. That's the Eastern District of

Michigan.

Any questions you want to further ask?

MS. MCCULLOUGH: Just --

THE COURT: -- with regard to Count 1?

MS. MCCULLOUGH: Just one, Your Honor.

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THE COURT: Okay.

MS. MCCULLOUGH: You knew when you submitted the claim

or caused the claim to be submitted that it was false?

THE DEFENDANT: That's correct.

MS. MCCULLOUGH: Thank you, Your Honor.

THE COURT: Let's go to Count 2. You've read these

counts, so why don't you just say what it is that you did on or

about April, 2012, that leads you to believe you're guilty of

health care fraud with regard to Count 2, Doctor.

THE DEFENDANT: On April 13th of 2012 I operated on a

patient in Sinai-Grace Hospital, which is in Detroit, Michigan.

I dictated that I operated at L4-L5 and S1 levels using the

Zimmer transfacet screw system. I did not use the Zimmer

transfacet screw system, and I did not perform a fusion using

the Zimmer transfacet screw system. I billed Medicaid in the

amount of $28,605 and was paid some amount of money for what I

had dictated.

THE COURT: And you knew that your statements were

false?

THE DEFENDANT: That's correct, Your Honor.

THE COURT: And you made them to receive the money

from the government?

THE DEFENDANT: That's correct, Your Honor.

THE COURT: Any further questions from the government

to --

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MS. MCCULLOUGH: No questions, Your Honor.

THE COURT: How do you plead as to that?

THE DEFENDANT: I plead guilty.

THE COURT: Did I go over the thing as to previous

count?

MR. NISKAR: I don't think you asked him how he plead

to Count 1.

THE COURT: As to Count 1, going back to that, how do

you plead as to Count 1 which dealt with --

MR. LESSING: Patient 1, Your Honor.

THE COURT: -- Patient 1?

THE DEFENDANT: I plead guilty, Your Honor.

THE COURT: The Court finds, as to Count 1, the

Defendant's statements has met the elements, required elements

of the offense, knowingly, freely, voluntarily made, and the

Court will accept the plea to Count 1, plea of guilty, and

we'll take the Rule 11 under advisement.

As to Count 2 which dealt with Patient Number 2, how

do you plead as to that?

THE DEFENDANT: Guilty, Your Honor.

THE COURT: Okay. As to that, the Court finds the

Defendant's statements are knowingly, freely and voluntarily

made. The elements of the offense to which he pleads guilty

has been made out by his statements in court. The Court will

accept the plea, take the Rule 11 under advisement.

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Let's go to Count 3. That deals with Patient

Number 3. Please tell me what it is that you did on or about

March of 2012 with regard to Patient Number 3 that leads you to

believe you're guilty of health care fraud.

THE DEFENDANT: On March 21, 2012, I operated on this

patient in Pontiac, Michigan. Again, I dictated a report

stating that I had performed a fusion at the L4-L5 level using

the Zimmer transfacet screw system when, in fact, I had not

done that. I submitted the bill to Blue Cross for $20,383 and

was paid some amount of that and I did this knowing that I was

making a false statement.

THE COURT: Okay. Any questions the government wants

to ask to further establish a factual basis?

MS. MCCULLOUGH: The government is satisfied with the

factual basis, Your Honor.

THE COURT: How do you plead as to Count 3?

THE DEFENDANT: Guilty.

THE COURT: The Court finds the Defendant's plea as to

Count 3 is knowingly, freely, voluntarily made. The elements

of the offense to which he pleads guilty have been made out by

his statements in court. The Court will accept the plea to

Count 3, take the Rule 11 under advisement.

Let's go to Count 4 which deals with Patient Number 4.

THE DEFENDANT: On March 31, 2012, I operated on a

patient in Lapeer, Michigan. I dictated that I had performed

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an instrumented fusion at L4-5 and S1 using the Zimmer

transfacet screw system. I had not done this yet I dictated

this. I submitted this bill to Medicaid and was, again, paid

some amount of what I had billed, and I did this knowing that I

had not, in fact, done this above operation.

THE COURT: So you had submitted fraudulent statements

in the billing to receive the payment, correct, Doctor?

THE DEFENDANT: That's correct.

THE COURT: Okay. Any questions that the government

wishes to further ask with regard to Count 4?

MS. MCCULLOUGH: No, Your Honor. Government is

satisfied with factual basis.

THE COURT: How do you plead, sir, as to Count 4?

THE DEFENDANT: I plead guilty.

THE COURT: The Court finds Defendant's plea is

knowingly, freely, voluntarily made. The elements of the

Count 4 have been made out by his statements in court. The

Court accepts the plea to Count 4, take the Rule 11 under

advisement.

Count 5 charges unlawful distribution of a controlled

substance. Please -- what is the factual basis for this

offense?

THE DEFENDANT: On October 22, 2012, I prescribed

oxycodone, 30 milligrams, to a patient who did not need the

medication. Wrote the prescription out in his name, and he

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presumably filled the prescription.

THE COURT: Okay. And you did it for no legitimate

medical purpose, the prescription?

THE DEFENDANT: That's correct.

THE COURT: Okay. And this occurred in what city?

THE DEFENDANT: Probably Southfield, Michigan.

THE COURT: That's Eastern District of Michigan.

And you knew that oxycodone was a controlled narcotic;

is that correct?

THE DEFENDANT: That's correct.

THE COURT: Okay. Any questions the government wants

to ask to further establish a factual basis?

MS. MCCULLOUGH: No, Your Honor. Government is

satisfied with the factual basis.

THE COURT: Okay. How do you plead as to Count 5,

sir?

THE DEFENDANT: Guilty.

THE COURT: The Court finds the Defendant's plea is

knowingly, freely and voluntarily made. The elements of the

offense to which he pleads guilty have been made out by his

statements in court. We'll accept the guilty plea, take the

Rule 11 under advisement and we'll refer you to the probation

department for a presentence report.

And, Ms. Tofil, if you help us with a sentencing date,

we will conclude this proceeding.

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THE COURT CLERK: September 15th at 1:00 p.m.

THE COURT: Okay. Very good.

Anything further from the government?

MR. BAUM: Your Honor, just to be clear, did the Court

discuss the appellate waiver with the Defendant?

THE COURT: I did at the initial get-go, yes.

MR. BAUM: I apologize, Your Honor.

THE COURT: That covers the plea agreement. It's a

single plea agreement --

MR. BAUM: Thank you.

THE COURT: -- both indictments. Informations, sorry.

Anything further from the defense?

MR. NISKAR: Not on behalf of Dr. Sabit.

MR. LESSING: No, Your Honor.

THE COURT: Thank you. We are concluded.

MS. MCCULLOUGH: Thank you, Your Honor.

(Proceedings concluded, 4:57 p.m.)

- - -

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CERTIFICATION OF REPORTER

I, Leann S. Lizza, do hereby certify that the above-entitled

matter was taken before me at the time and place hereinbefore

set forth; that the proceedings were duly recorded by me

stenographically and reduced to computer transcription; that

this is a true, full and correct transcript of my stenographic

notes so taken; and that I am not related to, nor of counsel to

either party, nor interested in the event of this cause.

S/Leann S. Lizza 6-3-2015

Leann S. Lizza, CSR-3746, RPR, CRR, RMR Date

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