A director of operations and sales for a mobile medical diagnostics company in New York has been charged with conspiracy to provide kickbacks to doctors. James Rausch, 57, from Port Jefferson Station, New York, is accused of participating in a scheme involving medically unnecessary brain scans.
Rausch faces one count of conspiracy to violate the anti-kickback statute. A plea hearing date has not yet been set by the court.
Charging documents allege that between March 2015 and September 2020, Rausch conspired with others, including two managers from a mobile medical diagnostics company conducting transcranial doppler (TCD) scans. The group allegedly entered into kickback agreements with doctors who ordered these brain scans. It is claimed that they offered payments to doctors based on the number of TCD ultrasounds ordered, disguising these as rental and administrative service agreements to make them appear legitimate.
The alleged scheme reportedly led to fraudulent Medicare bills totaling approximately $70.6 million, with Medicare paying around $27.2 million for these claims.
The charge against Rausch carries a potential sentence of up to five years in prison, three years of supervised release, and a fine up to $250,000. Sentences are determined by a federal district court judge following U.S. Sentencing Guidelines.
United States Attorney Leah B. Foley announced the charges alongside several officials: Roberto Coviello from the U.S. Department of Health and Human Services; Kimberly Milka from the FBI Boston Division; Thomas Demeo from IRS Criminal Investigation; Kelly M. Lawson from the U.S. Department of Labor; Ketty Larco-Ward from the U.S. Postal Inspection Service; and Christopher Algieri from the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorneys Howard Locker and Mackenzie Queenin are handling prosecution for this case.
All details in charging documents remain allegations until proven beyond reasonable doubt in court.
