If you liked G-sting, you'll love Operation QuackShyster

They've got a bit more spring in their step down at the federal building these days. FBI agents and federal prosecutors aren't quite skipping down the hallways, but it would be hard to blame them if they did.

Government lawmen are on a bit of a roll. People who work with them on a regular basis say that a certain swagger has returned as a result of recent court victories and plea agreements in high-profile cases that have consumed years and years of time.

The G-sting convictions are the most obvious example. Agents and prosecutors have been working on that case, almost nonstop, since 1999. The U.S. attorney's office was always confident it would convict former Clark County Commissioners Dario Herrera and Mary Kincaid-Chauncey, as well as former County Commissioner Lance Malone and the San Diego city councilmen, but just the same, there must have been quite a few sighs of relief when those verdicts were returned.

Ditto for the plea agreement in the Crazy Horse Too investigation. That one's been going on for 11 years, and probably longer. I've heard the grumblings from some in the community who are deeply disappointed that Horse owner Rick Rizzolo and his managers are unlikely to face long prison sentences. The critics wanted scalps on the wall, or at least some blood spatters. They will have to settle for large fines and minimal jail time. But it should be kept in mind that the government is still getting what it wanted most, namely, getting Rizzolo out of the business and forcing the Horse to change hands.

There was little appetite on either side for a trial that could have dragged on for six months or longer and cost both sides millions of dollars. More importantly, from the government's perspective, putting the Crazy Horse case and G-sting caper behind them means they can finally move on to other important matters. If the gargantuan Horse case had gone to trial, then U.S. Attorney Dan Bogden would have had this best people tied up for the next couple of years, at the expense of many other potential prosecutions, a few of which might be more significant in the long run.

Which ones, you ask? Here's an example. Remember those Knappster columns a few months ago about an investigation into an alleged health insurance conspiracy involving very successful lawyers and highly respected doctors? By some estimates, this arrangement has raked in hundreds of millions of dollars over the past few years and might involve the corruption of public officials. The investigation was hot and heavy last year but cooled off while key prosecutors were tied up with other more pressing cases. Now, however, the probe is back on the front burner.

MEDICAL FREEBIES FOR A JUDGE

At the center of the investigation is an alleged middleman named Howard Awand. FBI agents believe that Awand helped to coordinate the arrangement between the doctors and lawyers, that he "managed" the cases and found ways to help the lawyers and doctors make obscene amounts of money. Awand reportedly helped his own cause by holding fund-raisers for local judges, essentially bankrolling entire re-election campaigns.

Now that the FBI is back on the trail, what sort of things are they looking at? One tale that piqued the curiosity of agents is a report that a local judge took advantage of Awand's generosity by getting an expensive back operation by one of the best surgeons in Las Vegas. It's believed the surgeon billed the judge's insurance company to cover part of the cost, but the judge didn't have to put up a cent for the co-pay amount. Most amazing of all, the FBI has been told that Awand, who has no medical degree whatsoever, scrubbed up, donned a doctor's outfit, and was inside the operating room during the surgery. To paraphrase Steve Martin in the Man with Two Brains, get that cat out of here.

Perhaps the most alarming allegation being pursued by agents and prosecutors is the possibility that unnecessary surgeries were performed on unsuspecting patients as a way to jack up the medical bills and thus increase the ultimate financial settlements of the cases. Knappster has reason to believe that government lawyers are currently zeroing in on this aspect of the case, looking for indisputable examples of surgeries that simply weren't necessary, a few of which may have gone awry, leaving patients in worse shape than when they began.

MEDICAL SUPPLY COMPANIES TARGETED

FBI agents have reportedly uncovered a whole new area of interest while pursuing the Awand matter. Informed sources say they are now examining the cozy relationships that have developed between local docs and medical supply companies. Around the country, the big medical equipment companies have wined and dined physicians, treated them to golf outings and vacations, in exchange for some consideration when it comes time to buy expensive pieces of equipment. Here in Las Vegas, the friendships have gone even further, according to those in the know. I wouldn't be surprised to hear that the docs are being bankrolled by the supply companies, that shell corporations have been set up to hide the money trail, and that hospitals, insurance companies, patients and taxpayers are being screwed. Of course, no one is talking about this on the record, so let's just call it a hunch for now.

What else do the feds have on their plate? They aren't entirely finished with the G-sting stuff. There is still the trial of Lance Malone set for August. There will likely be appeals in the Herrera and Kincaid-Chauncey convictions, but there are also some loose ends that are tempting to tie up. Mike Galardi gave the feds plenty of other leads, as other newspapers have finally reported. A few of those are probably solid enough to warrant further investigation. At least three of the people named by Galardi are of great interest to investigators, although it isn't certain that enough can be put together for an indictment. I'm also told there are loose ends in the Crazy Horse Too case, items that were not covered by the universal plea agreement involving purveyors and subcontractors. It's also been confirmed to us that the federal grand jury has heard witness testimony in a tax case that is being built against prominent local businessman Pat Clark Jr., who owns Nevada Beverage and a car dealership.

As the FBI and U.S. attorney know better than anyone, Las Vegas is a target-rich environment for investigations and prosecutions. We might run out of water someday, or land, or pupfish, but when it comes to crooks, scammers and shysters, we've got an unending supply.

GEORGE KNAPP IS A VETERAN INVESTIGATIVE REPORTER FOR KLAS CHANNEL 8. HE CAN BE REACHED AT GKNAPP@KLASTV.COM.