Desai tried shipping vehicles overseas. Would he have followed?

By Marshall Allen, Nicole Lucht

Wednesday, April 30, 2008 | 2 a.m.

Dr. Dipak Desai, under investigation for his role in the nation’s biggest hepatitis C scare, tried to ship two personal luxury vehicles to Dubai, an auto dealer told the Sun.

Bernard Schiappa, general manager of Fletcher Jones Imports, said Desai came into his dealership with a broker from Dubai, and tried to pay off the two vehicles so he could have ownership and ship them overseas.

But the dealership denied his request.

Sources familiar with the criminal investigation of Desai had not been aware of the attempted car shipments but said the activity sounds suspicious.

Speculation that Desai might flee the country arose soon after health officials announced in late February that dangerous injection practices at his endoscopy center had endangered tens of thousands of patients.

The revelations triggered state and federal criminal investigations and led to the closure of his endoscopy businesses. Desai has promised to not practice medicine in Nevada, although he has not surrendered his license. The Nevada State Board of Medical Examiners on Tuesday obtained a temporary restraining order to stop him from seeing patients.

In addition, Desai’s wife, pulmonary specialist Dr. Kusum Desai, has quit her practice, which was unrelated to his clinic.

Authorities have flagged Desai’s passport, asking that they be notified if he tries to leave the country.

Desai is being investigated for possible Medicare and insurance fraud and negligence in cases in which patients were infected with hepatitis C, but he has not been arrested or charged with any crime and is free to leave the country.

Desai’s attorney did not return calls for comment.

Members of the Indian community who know Desai say they have heard nothing about the couple moving, and their Summerlin home is not listed for sale in real estate records.

But authorities say they will look into the attempted shipment of the vehicles.

“It’s suspicious because nobody has cars shipped overseas,” one source said.

A source told the Sun that Desai visited Fletcher Jones Imports about a half-dozen times in the past two weeks to initiate the shipment. He tried to take ownership of two Mercedes-Benzes he had been leasing — a black CL63 AMG worth $145,000 that had been leased Nov. 11 in his name, and a black S550 worth $102,000 that had been leased Oct. 29 in the name of his wife.

Schiappa said Mercedes Benz dealerships have agreements worldwide that restrict such international transactions. Fletcher Jones would have faced penalties of up to $15,000 for each vehicle if they were shipped to Dubai.

Desai then tried another route to pay off the cars, by sending a check for the balance of the vehicles directly to Mercedes Benz Financial, which holds the notes on the cars, Schiappa said.

But the check was returned because leased vehicles must be paid off through a Mercedes dealer, Schiappa said. It is possible that another dealer would allow Desai to pay off the cars, Schiappa said.

“I want people to understand that we don’t do uncouth things. We pay attention to what happens in town,” he said, adding that he was very familiar with the controversy surrounding Desai.

Multiple agencies are investigating Desai for his role in running the Endoscopy Center of Southern Nevada, the clinic that was the source of seven hepatitis C infections because of unsafe injection practices. (An additional case of hepatitis C was contracted at a related clinic owned by Desai.)

• The U.S. Department of Medicare and Medicaid Services, the FBI and the Nevada attorney general’s office are investigating possible insurance fraud. Sources who worked at the clinic have told the Sun that Desai routinely overbilled for anesthesia given to patients.

• The Nevada State Board of Medical Examiners filed a complaint Friday against Desai, accusing him of malpractice, exploiting patients for financial gain and bringing the medical profession into disrepute. Sources familiar with the clinic have told the Sun that Desai ordered others to cut corners in the pursuit of profit.

• And Metro Police are investigating whether the medical neglect of Desai and others caused substantial bodily harm to patients.

Fleeing the country would suggest guilt, a person familiar with one of the investigations said, and the information would be presentable to a jury if there is a trial.

“I’ve got to assume he wouldn’t be stupid enough to take off,” the source said. “The United States government can find him, and they can bring him back and he will hurt his case in the process.”

(Editor's note: This story has been corrected. An earlier version reported that Desai had paid off the vehicles and was shipping them to Dubai via Texas.)