A federal judge has paved the way for Dr. Salomon Melgen’s family to recoup some or maybe even all of an estimated $18 million they put up to assure the Palm Beach County ophthalmologist wouldn’t flee, rejecting federal prosecutors’ claims that the money is needed to pay victims of the physician’s $105 million fraud.

And by victims, the prosecutors primarily mean Medicare.

U.S. District Judge Kenneth Marra’s ruling came late Monday, three days after he voiced deep reservations about prosecutors’ efforts to hold onto the bond, given that Melgen is behind bars, awaiting sentencing for his conviction on 67 charges of health care fraud.

A $150,000 bond Melgen posted in New Jersey after he was indicted in a separate case on influence-peddling charges with U.S. Sen. Robert Menendez, D-N.J., was returned after a West Palm Beach jury convicted him in April on the health care fraud charges. Jurors here agreed with prosecutors that the retinal specialist, who lives near Juno Beach, had falsely diagnosed macular degeneration in scores of patients so he could bilk Medicare out of as much as $105 million.

At a hearing Friday, Marra pointedly asked Assistant U.S. Attorney Carolyn Bell how the government could justify continuing to hold onto the Melgen family’s assets, including property in Melgen’s native Dominican Republic and in Palm Beach County.

"How do I reach out and restrain someone’s property who’s not a party to this lawsuit?" he asked. "How do I reach out and snatch it?"

In the order, Marra answered his own question: He can’t.

He said Bell could file a separate lawsuit to shore up her claim that millions of dollars in property was fraudulently put in family members’ names. Marra said property in Melgen’s name can be retained by the government, but he can’t tie up property owned in the name of Melgen’s wife and two adult children on the mere basis of suspicion.

Attorney Matthew Menchel, who represents Melgen, said as much at Friday’s hearing.

"You don’t get to restrain assets on the hope that somewhere down the road, you’ll find a justification for it," he told Marra. "This is unfair. I don’t think Ms. Bell would want the government to hold her assets on a whim."

Menchel also said Melgen’s family needs money to pay bills. Since the bond package was approved in July 2015, a court-appointed trustee has approved their spending. Further, Menchel said, the money is needed to pay experts to prepare for Melgen’s Aug. 11 sentencing hearing. He faces a possible 20-year term.

Court records show Melgen paid roughly $7.5 million up front for his defense here and in New Jersey. That pool of money has been spent, Menchel said.

At a hearing in June, a U.S. magistrate voiced many of the same concerns as Marra. But, he gave Bell until Aug. 3 to find some legal authority that would give the federal government the power to hold onto family’s property. The magistrate, James Hopkins, suggested that if Melgen needed money to prepare for his sentencing, he could always declare he is indigent and ask taxpayers to pick up his future legal tab.

Instead of taking that advice, Melgen’s lawyer appealed Hopkins’ decision to Marra.