Kickback Case Settled For $85 Million Involving Oakbrook Terrace Medical Company

OAKBROOK TERRACE, IL — A medical imaging business based in Oakbrook Terrace and its CEO have agreed to pay more than $85 million to resolve allegations that the company paid kickbacks to referring cardiologists, according to authorities.

Cardiac Imaging Inc. will pay $75 million plus additional amounts based on future revenue while founder, owner and CEO Sam Kancherlapalli, of Florida, will pay $10.48 million to resolve alleged violations of the Anti-Kickback Statute and the Physician Self-Referral Law, authorities said.

Between March 1, 2014, and May 31, 2023, the company with Kancherlapalli’s approval paid kickbacks to referring cardiologists in the form of above-market PET scan supervising fees of $500 or more per hour, even when the cardiologists were with other patients or not on-site, according to the U.S. Department of Justice. The company also compensated the cardiologists for services that were not provided, authorities said.

A former billing manager at the company brought claims against the business under the False Claims Act and will receive a share of the settlement, according to the department. Claims against the company’s former president and part-owner Richard Nassenstein were not resolved in the settlement announced Tuesday, authorities said. The case was settled in the Southern District of Texas, according to the department.

In addition to the payments, the company and Kancherlapalli entered a five-year Corporate Integrity Agreement and must implement measures to ensure compliant referring arrangements, put in place a centralized annual risk assessment and internal review process, and retain an independent organization for systems and transactions review, authorities said.

To report potential fraud, call 800-447-8477.