UCI Doctor Faces Tighter Bail Restrictions

A federal judge tightened bail restrictions Tuesday for a UC Irvine physician charged with 10 counts of insurance fraud, meaning the doctor will probably spend several more days in jail before being released.

U.S. District Judge Gary L. Taylor ordered Dr. Sergio C. Stone to put up additional collateral to guarantee a $3-million bond.

Under Taylor’s ruling, Stone would be required to return to the United States $475,000 of $500,000 he wired to Chile last year. The doctor also was ordered to sign guarantees that he would not sell off his remaining assets, which federal prosecutors say are worth in excess of $2 million.

Taylor said the endocrinologist would remain in custody until several properties--put up as collateral by six of the doctor’s friends and relatives--are deeded to the court.

Stone, who appeared in court in jail-issued green scrubs, brown slippers and handcuffs, has pleaded not guilty to 10 counts of mail and insurance fraud. A federal indictment alleges he filed false claims stating that he was assisted by other licensed physicians while performing medical procedures, when he was working alone or with trainees.

Prosecutors filed the criminal charges amid a seven-month federal investigation into UC Irvine’s now-closed Center for Reproductive Health. The university has accused Stone and two partners in the clinic with stealing human eggs and embryos from scores of women and implanting them in others.

Stone’s two partners--Dr. Jose P. Balmaceda and Dr. Ricardo H. Asch--have since sold their Orange County homes and left for Latin America.

The terms of Stone’s $3-million bail has been a source of concern for federal prosecutors who contended the doctor was planning to flee the country before his arrest last week.

Under the terms of the original bail arrangement, Stone agreed to return $400,000 of the $500,000 in his Chilean bank account to the United States and promised to pay $3 million if he failed to show up for trial.

Three of Stone’s friends and relatives also agreed to place their homes and other business properties--in which they have about $1 million in equity--to guarantee the bail. The three physicians also agreed to pay an additional $2 million if Stone jumped bail.

In addition, Magistrate Elgin Edwards, who set bail Friday, ordered the doctor to surrender his passport, remain confined at his Villa Park home, and wear an electronic monitoring device.

Prosecutors Thomas Bienert Jr. and Wayne Gross filed an immediate appeal of the magistrate’s bail decision, asking Taylor to further review the doctor’s financial arrangements.

Taylor imposed the additional bail requirements during a hearing Tuesday, ordering that two of Stone’s relatives place their properties as collateral and promise to pay an additional $1 million each if Stone fails to show up for trial. The judge also froze Stone’s assets, including his Villa Park home. “The perfect conclusion is at the end of the trial it will all be there waiting for him and safely protected,” Taylor said.

Stone’s attorney, Allan H. Stokke, said he didn’t think the additional requirements were necessary, adding that his client never intended to leave the country.

“It’s an overabundance of caution,” he said.