Great Neck Doc Indicted In Medicaid Fraud Scheme: NY Attorney General

GREAT NECK, NY — A doctor from Kings Point was indicted Monday on charges he defrauded Medicaid by subjecting patients to unnecessary and invasive medical tests, officials said.

Dr. Payam Toobian, 52, was the owner of America's Imaging Center, Inc. — a diagnostic radiology center in Forest Hills. He is accused of running a kickback scheme in which he bribed other physicians for patient referrals, subjected patients to tests and procedures they didn't need, and then submitted false claims to Medicaid.

Some of the tests reportedly included MRIs of the brain, cervical spine, and lumbar spine. Some patients had to receive unnecessary and invasive injections, as a result, according to officials.

"New Yorkers should be able to trust that their doctors are working to heal them, not profit off of their suffering," said New York State Attorney Gen. Letitia James. "Bribery and kickback schemes corrupt our healthcare system and make it impossible for patients to receive the care that they need. The idea that a licensed physician would subject patients to unnecessary testing to line their pockets is unconscionable, and my office will continue to go after medical providers that jeopardize the health and safety of New Yorkers."

Prosecutors said that, between January 2006 and August 2017, Toobian gave gift cards, cash, and checks totaling more than $547,000 to three physicians in exchange for their patient referrals. The diagnostic radiology center reportedly received more than $1 million in paid claims relating to patient referrals from those physicians.

In addition to this kickback scheme, prosecutors said that Toobian directed his employees to add additional, unordered radiological procedures to orders submitted by referring physicians to increase the amount of money the facility would receive from Medicaid. That reportedly took place from January 2014 to August 2017.

Toobian was charged with third-degree grand larceny, third-degree health care fraud, eight counts of falsifying business records in the first degree, and three counts of violating the Social Services Law statute prohibiting the payment of kickbacks under the state's Medicaid program.

The Office of the Attorney General said it has also filed a separate civil suit seeking damages from Toobian and America's Imaging, among other defendants, for violating the Federal and New York State False Claims Act and for other civil causes of action.