A New York operations manager pleaded guilty Friday in federal court in Boston to conspiring to offer and pay kickbacks to doctors in exchange for ordering medically unnecessary brain scans.
Timothy Doyle, 45, of Selden, N.Y., pleaded guilty to one count of conspiracy to violate the anti-kickback statute. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 3, 2025.
From at least June 2013 through at least September 2020, Doyle conspired with others, including two managers for a mobile medical diagnostics company that performed transcranial doppler scans, to enter into kickback agreements with various doctors. TCD scans are brain scans that measure blood flow in parts of the brain.
Doyle and his alleged co-conspirators agreed to offer and pay doctors kickbacks, some in cash and others by check, based on the number of TCD ultrasounds the doctors ordered.
Doyle and his alleged co-conspirators created purported rental and administrative service agreements, which on paper made it appear as if doctors were compensated for the TCD company’s use of space and administrative resources of the ordering doctor’s practice based on fair market value and not based on the volume or value of referrals.
These agreements were shams that hid the true nature of the arrangement of paying per test.
The scheme resulted in fraudulent bills of approximately $70.6 million to Medicare. Medicare paid approximately $27.2 million to the TCD company for the fraudulent claims.
The charge of conspiracy to violate the Anti-Kickback Statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000.
