According to federal prosecutors, Philip Sobol, an orthopedic surgeon, agreed with Michael Drobot to receive kickbacks in exchange for performing surgeries at Pacific Hospital of Long Beach or referring spinal surgery patients to physicians who would perform the spinal surgeries at Pacific Hospital.

Sobol and Drobot concealed the kickbacks through a series of sham agreements including a management agreement and option agreement. Sobol received approximately $5.2 million dollars in kickbacks.

On November 24, 2015, Sobol entered into an agreement to plead guilty to a two-count information that charged him with Conspiracy in violation of 18 U.S.C. § 371, and Interstate Travel in Aid of a Racketeering Enterprise in violation of 18 U.S.C. § 1952.

Sobol further agreed to forfeit the sum of $5,200,000.00 which he admitted represented proceeds he obtained as a result of the offenses to which he entered the guilty plea.

In furtherance of this stipulation, on January 16, 2018, Federal Judge Josephine L. Stanton ordered a money judgment in the amount of $2,000,000.00 in favor of the United States of America and against Defendant Philip A. Sobol.

She furthered ordered that “This Money Judgment is part of the sentence imposed on Defendant Sobol in this case.” He remains to be sentenced in February.

Prosecutors filed a Sentencing Report in his criminal case on December 5. On February 24, 2017, the United States Probation Office reported that his sentencing range was 46-57 months’ imprisonment. The report noted that Sobol had agreed to pay restitution but “did not identify any victims from the harm.”

But prosecutors say the Court should apply an additional two level increase because the offense involved more than ten victims.

Prosecutors reported that “it is difficult to determine exactly how many surgeries defendant referred where he received a kickback because the kickbacks were paid through sham management and option agreements that were designed to approximate the number of surgeries referred or performed at Pacific Hospital, Drobot admitted in his plea agreement that he paid between $10,000 and $15,000 per surgery performed.”

His Sentencing Hearing is currently set for February 16, 2018 at 8:30 a.m.