(WNY News Now) – Payam Toobian, M.D., and his company, America’s Imaging Center, Inc., were found guilty by a jury for orchestrating a kickback scheme that defrauded Medicaid and subjected patients to unnecessary invasive procedures, announced New York Attorney General Letitia James.
New York – A jury has convicted Dr. Payam Toobian and his company, America’s Imaging Center, Inc., on charges related to a kickback scheme that defrauded Medicaid and exposed patients to unnecessary invasive procedures. The verdict comes after Toobian was indicted by the Office of the Attorney General (OAG) in August 2022.
Toobian, based in Kings Point, New York, was found guilty on multiple felony charges, including Grand Larceny in the Third Degree, Health Care Fraud in the Third Degree, Falsifying Business Records in the First Degree, and violating the Social Services Law statute prohibiting kickbacks. The charges stem from a kickback scheme operated by Toobian from January 2006 to August 2017, involving gift cards and cash payments to physicians in exchange for patient referrals. Additionally, Toobian directed the unauthorized addition of radiological procedures to orders submitted to Medicaid, increasing financial gains.
Attorney General James emphasized the impact on patients, stating, “For years, Payam Toobian subjected patients to unnecessary and often invasive tests in order to enrich himself. Today’s verdict will ensure he is held accountable for defrauding Medicaid and putting New Yorkers at risk.”
The kickback scheme subjected patients to medically unnecessary and invasive radiological testing without the knowledge or consent of referring physicians. The additional tests, including MRIs with contrast, involved invasive procedures like injections. Toobian then submitted claims for payment to Medicaid for these unnecessary tests.
The investigation received collaboration from the U.S. Department of Health and Human Services, Office of the Inspector General, the New York State Department of Health, and Medicaid MCOs, including HealthFirst, MetroPlusHealth, and United Healthcare.
The Office of the Attorney General expressed gratitude for the cooperation of various agencies and individuals involved in the investigation. The trial was led by the Medicaid Fraud Control Unit (MFCU), with support from the Division for Criminal Justice.
The MFCU, tasked with addressing Medicaid provider fraud and protecting nursing home residents, encourages individuals with information to file confidential complaints online or contact their hotline at (800) 771-7755. In case of emergencies, individuals are urged to call 911.
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