On February 20, 2014, the owner of the Pacific Hospital of Long Beach, Michael D. Drobot, entered into a plea agreement in the case captioned United States v. Michael D. Drobot, pursuant to which he agreed to plead guilty to conspiracy and payment of kickbacks in connection with a federal health care program.

Pursuant to his plea agreement, Drobot agreed to forfeit all “right title, and interest” in assets “derived from or acquired as a result of, or used to facilitate the commission of, defendant’s illegal activities.” Drobot further agreed “[t]o the Court’s entry of an order of forfeiture at or before sentencing with respect to these assets and to the forfeiture of the assets.”

After a number of “sealed” documents were filed by the parties, and reviewed by the court on the topic of this forfeiture, Federal Judge Josephine L. Staton signed an Order on January 10, 2018 directing a personal money judgment of forfeiture in the amount of $10,000,000.00 in favor of the United States of America against defendant Michael D. Drobot.

The terms of the forfeiture require the payment of $300,000 in cash. In addition liens were imposed on in the favor of the United States Attorney’s Office (USAO) on all properties in Oregon owner by Drobot. He was then ordered to sell the Oregon properties and pay all net proceeds (gross proceeds less taxes, costs, and other normal and customary costs associated with the sale) to the USAO.

He was also ordered to sell his 1965 Aston Martin, 1958 Porsche, and 1971 Mercedes Benz, and pay the proceeds to the USAO.

This personal money judgment of forfeiture is part of the sentence imposed on defendant in this case. The Court retained jurisdiction to enforce this judgment.

But that is not all for Mr. Drobot.

A hearing to determine victim losses pursuant to 18 U.S.C. § 3664(d)(5) and to determine the final amount of restitution is scheduled for May 11, 2018 at 10:30 a.m. And the Court will determine his criminal sentence this week.

However, Drobot plead guilty early in the case, and agreed to “cooperate” with authorities. Conceptually, as a result of his cooperation, many successful prosecutions of well known physicians were successful. No doubt this will be taken into consideration.

Drobot has also filed letters from various supporters asking for leniency.

Attorney Donald G. Norris authored a support letter dated January 11. He handleled many of Mr. Drobot’s civil matters, both before and after the government investigation and prosecution in the case now before the Court, including the civil RICO case that was brought by State Compensation Insurance Fund before Judge Andrew Guilford. He argues that Drobot “already suffered considerable punishment” as a result of the many criminal and civil cases. He asks that “this Court not impose a sentence of imprisonment, and if one is imposed, a short term.”