According to a motion filed Thursday in U.S. District Court, Nancy and Lester “Ape” Sadler made false statements under oath to the court in their financial affidavit to obtain court-appointed counsel, all the while, continuing to operate a pain clinic in Columbus.
“Aside from their extensive personal expenses, the Sadlers have primarily used clinic income to support their extensive gambling, including repeated trips outside of the jurisdiction without permission,” the motion states. “Moreover, the pain clinic operated by the Sadlers has engaged in illegitimate medical practices, which is a danger to the community.”
The motion filed by Timothy S. Mangan, assistant U.S. attorney, says that while the Sadlers closed the Waverly pain clinic after their initial court appearance Aug. 3, 2010, they continued to operate Ohio Medical West in Columbus.
At their initial court appearance Lester Sadler claimed he was not employed but received $1,700 per month in disability and rental income; Nancy Sadler claimed to earn $2,160 per month working at the clinic.
The motion calculates the income and use of the income from the Columbus pain clinic.
According to two physicians, Dr. William Cullen, and Dr. Daniel Brumfield, who recently had his license suspended by the State Medical Board of Ohio, the clinic handled about 40 patients or more per day and each patient was charged $180 cash per visit. Based on those numbers, the clinic earned at least $25,000 per week in revenue, which is equivalent to more than $100,000 per month, and $1.2 million in gross revenue per year.
The motion says the patients paid the $180 to clinic cashier Sandy Wells, another defendant in the case, and that Lester Sadler would take the extra cash from Wells.
“Of the $100,000 in monthly revenue, the Sadlers routinely deposited approximately $60,000 of the cash each month into a business account at Chase Bank. The remaining $40,000 in cash was not deposited into the bank. However, that significant amount of cash was controlled by the Sadlers and is believed to support their gambling behavior,” the motion read.
It goes on to charge the Sadlers’ gambling lifestyle further demonstrates that they have generated large amounts of income since their arrest.
“Hollywood Casino (formerly Argosy Casino) and grand Victoria Casino are gambling establishments that operate in southern Indiana, outside of the Sadler’s approved area for travel. Bank records show that the Sadlers have routinely withdrawn funds from the clinic account while at these casinsos. Since the time of their arrest, the Sadlers have made ATM withdrawals from the clinic account of $11,300 at these casinos on 18 different dates,” according to the motion.
Mangan says casino records show the Sadlers have gambled there several times per month from August 2010 thorough at least May 2011, typically playing with thousands of dollars at a time.
The motion also charges Ohio Medical West is also receiving scrutiny from regulators and investigators for its medical practices.
The motion says a defendant who violates a condition of release is subject to a revocation of release, an order of detention, and a prosecution for contempt of court, and they may be ordered to financially contribute to the cost of their counsel.
“For the reasons set forth above, the United States requests that bond be revoked for defendants Lester and Nancy Sadler. The United States also requests an order that defendants Nancy and Lester Sadler contribute financially to the cost of their own defense. If needed, the United States is prepared to proceed with an evidentiary hearing setting forth the facts described above,” the document reads.
In addition to Lester and Nancy Sadler, Lisa Clevenger of Stoutsville, James Sadler of West Portsmouth, Brenda Banks of Columbus and Wells of South Shore are scheduled to go on trial on Feb. 6, 2012.
FRANK LEWIS may be reached at (740) 353-3101, ext. 232, or firstname.lastname@example.org.