Imprisoned CdM man faces new federal charges for illegally selling luxury cars after fraud conviction

An imprisoned Corona del Mar man agreed to plead guilty to new federal criminal charges after selling his luxury cars and hiding the proceeds rather than paying court-ordered restitution in an earlier medical fraud case, federal prosecutors said this week.

Michael D. Drobot, 74, has been charged with three-counts of wire fraud, engaging in monetary transactions in property gained from unlawful activity and disobeying a court order to forfeit earnings because of his involvement in a previous $950-million medical fraud case.

Drobot is seving a 63-month sentence in a Kern County federal prison for his previous conviction.

The new plea deal would order him to forfeit $10 million from selling his 1965 Aston Martin, 1958 Porsche and 1971 Mercedes-Benz, the U.S. Atty,’s Office said in a news release.

Drobot is scheduled to be arraigned in U.S. District Court in Santa Ana in the coming weeks. He faces a maximum of 50 years on the new charges.

Drobot’s attorneys did not immediately respond to a request for comment Friday.

According to federal prosecutors, Drobot conveyed an interest in the Aston Martin car to a classic car auction company in exchange for a $1 million advance on the proceeds of the car’s sale in 2018.

Prosecutors say Drobot admitted that he asked the auction company to wire $1 million to his bank account and used that money for personal expenses, instead of paying the court, and then laundered the money by wiring it to third parties.

After selling the cars in violation of court order, the federal government in February forfeited Drobot’s interest in his Newport Beach residential and business properties.

Drobot — former owner of Pacific Hospital in Long Beach — pleaded guilty in 2014 to allegations of conspiracy and illegal kickbacks in a massive fraud case.

Drobot paid more than $50 million in bribes to doctors to steer hundreds of millions of dollars in spinal surgeries to his hospital.

Drobot’s son, Michael R. Drobot, also pleaded guilty in 2016 to participating in the case.

Prosecutors have charged 17 people and obtained 10 convictions in the healthcare fraud scheme.

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