Doctor Who Faced Many Counts Pleads Guilty to One and Escapes Jail

An Anaheim dermatologist whose Medi-Cal fraud case mushroomed into allegations of murder solicitation, bribery and influencing witnesses pleaded guilty to a single count Friday.

As part of a plea-bargaining arrangement, the doctor agreed to be admitted to a psychiatric hospital for a year in lieu of a jail term, and the other allegations were dropped.

Dr. Lawrence S. Krain, 44, who has become well known in Orange County legal circles for his lawsuits against judges, lawyers and reporters, pleaded guilty in Orange County Superior Court to influencing a witness against him to leave the state.

Krain had entered the guilty plea in Municipal Court last week. But when it came time to have that plea certified in Superior Court Friday, he reportedly balked and threatened to withdraw his plea. After a conference with his lawyers, however, he decided to stand by his guilty plea.

Superior Court Judge Richard L. Weatherspoon told Krain he thought it was “an intelligent decision.”

The main witness in the solicitation-for-murder case had died. Earlier this year, 14 counts of Medi-Cal fraud had been dismissed against Krain after then-Superior Court Judge Robert H. Green found him incompetent to stand trial on those charges.

One irony is that the two court-appointed defense lawyers, Milton C. Grimes and Marne A. Glass, are being sued by Krain. They tried to be relieved from the case, citing a conflict because of Krain’s suit against them. But when Superior Court Judge Kathleen E. O’Leary, who is also being sued by Krain, refused to let them off, they continued to work in his defense.

Krain left the courtroom frowning Friday. He refused to talk to reporters and told his attorneys to say nothing, but they ignored him.

“Nobody wanted to see Dr. Krain go to jail,” Grimes said. “What happened today was in the best interest of justice.”

Deputy Dist. Atty. Wallace A. Wade agreed in part: “I’m not so sure Dr. Krain didn’t deserve some jail time in addition, but there is no doubt that what he needs is some kind of psychiatric treatment.”

Krain is now taking what Wade called “anti-psychotic” medication. Krain told the court that he needed the medication because “it controls me.”

Krain, a highly successful dermatologist with offices in at least four cities, was first arrested in 1981 on a complaint about false billing for Medi-Cal patients. He was accused of billing the state for work done when he was actually at a medical conference in Africa.

A new set of charges was filed against him in 1982, when he was accused of bribing a patient to lie and soliciting the murder of another witness against him.

He was jailed in April, 1984, on new bribery charges and stayed there until he could make $250,000 bail four months later.

His license to practice medicine was suspended by the court in July, 1984.

“He snowballed his problems,” Wade said, adding that a state medical board hearing will have to be held after Krain’s release from the psychiatric hospital to determine whether he can regain his medical license.

“He should get it back,” said Grimes, his defense attorney. “He was a very knowledgeable, energetic, hard-working doctor before all this.”

Wade was not so sure.

“I think that the medical people will be taking a look at everything, not just his conviction,” Wade said. “I think it’s a question mark whether he will be capable of practicing again.”

Judge Weatherspoon ordered Krain to report to Brea Neuropsychiatric Hospital on Dec. 2. After a year of in-patient treatment, Krain will remain on probation for a year.

Weatherspoon also ordered Krain to pay a fine of $100, and told him: “Good luck to you, doctor.”