MRI Company Agrees to Pay $3.57 Million to Settle False Claim Act Case

Imagimed LLC, its former owners, William B. Wolf III and Timothy J. Greenan, and former chief radiologist, Steven Winter, have agreed to pay $3.57 million to settle allegations that they violated the False Claims Act, the Stark Law, and the Anti-Kickback Statute. Imagimed owns and operates fifteen MRI facilities, mostly in the state of New York.

A whistleblower complaint was filed by radiologist Dr. Patrick Lynch under the qui tam provisions of the False Claims Act. The whistleblower alleged that, between 2001 and 2008, Imagimed submitted false claims to Medicare, Medicaid and TRICARE for MRI scans with a contrast dye that were performed without the supervision of a physician. Federal regulations required that a physician supervise all MRI scans performed with a contrast dye.

The whistleblower also alleged that from 2005 to 2008, Imagimed had improper financial relationships with physicians who referred patients to Imagimed, in violation of the Stark Law and Anti-Kickback Statute.

Of the $3.57 million settlement amount, the whistleblower will receive approximately $565,000 as his reward under the qui tam provisions of the False Claims Act.