Judge denies bail to doctor in fraud case
January 29, 2005
NORFOLK — A federal judge Friday denied bond for Dr. Sidney S. Loxley but allowed his wife, Carol Dean Loxley to go free with restrictions as the couple await trial in a suspected prescription-fraud conspiracy.
At a bond hearing, a prosecutor presented sordid details of the couple’s life, including Loxley’s purported alcohol problem and his wife ’s dependence on painkillers and amphetamines, to discourage bail from being granted.
Assistant U.S. Attorney Laura P. Tayman also introduced evidence of domestic assaults between the couple and explored details of custody disputes the Loxleys had with relatives, one involving a bribery allegation.
Loxley, a Chesapeake orthopedic surgeon, faces a 91-count indictment charging him with drug trafficking resulting in the deaths of four patients, as well as illegally dealing prescription drugs and money laundering. His wife faces more than 30 counts related to the alleged prescription fraud and money laundering.
The Loxleys’ attorney, Andrew M. Sacks, told the judge that both clients should be freed, arguing that the case, if anything, is malpractice in nature …not criminal.
Magistrate James E. Bradberry ordered that Loxley remain jailed without bond pending trial. The judge cited a potential danger to the community and the possibility he might flee. He allowed Carol Loxley out on $25,000 bail, but ordered her placed on house arrest with electronic monitoring and drug screening. No trial date has been set.
Loxley is accused of prescribing heavy doses of narcotics such as Demerol and Oxycontin to patients already suffering from addiction. Four patients died, the indictment says, as a direct result of drugs prescribed by Loxley.
Tayman offered numerous incidents not listed in the indictment in her effort to keep the couple behind bars.
She cited 15 police calls to the couple’s house in Chesapeake over the past year, most for complaints of assault on each other.
Tayman also noted Loxley’s arrest on Jan. 19 when local police stopped his car and found him driving with a cup of vodka and soda with his wife and her 18-month-old grandson in the car.
He was charged that day with driving under the influence and driving on a restricted license from a previous alcohol related stop. Records show Loxley was arrested Sept. 1 on a DUI charge. Tayman said his blood-alcohol content that day registered 0.23 percent, or just under three times the legal limit.
Tayman also noted Carol Loxley’s attempt in 2003 to bribe an attorney $25,000 to obtain for her husband custody of his son from a previous marriage. She was convicted of a misdemeanor in that case and fined $500, court records say.