New York Doctor convicted for medicaid fraud and kickback scheme

A doctor in New York was found guilty and convicted for defrauding Medicaid. Dr. Payam Toobian and his company, America’s Imaging Center, Inc., were convicted by a jury for orchestrating a kickback scheme that defrauded Medicaid and unnecessarily exposed patients to invasive procedures. The verdict follows Toobian's indictment by the Office of the Attorney General (OAG) in August 2022.

Toobian, operating out of Kings Point, New York, was found guilty of several serious charges, including Grand Larceny in the Third Degree, Health Care Fraud in the Third Degree, Falsifying Business Records in the First Degree, and violating statutes under the Social Services Law that prohibit kickbacks. These charges relate to a kickback scheme spanning from January 2006 to August 2017, involving the exchange of gift cards and cash payments to physicians for patient referrals. Additionally, Toobian added unauthorized radiological procedures to Medicaid orders, seeking financial gain.

Attorney General James stated that Payam Toobian has subjected patients to unnecessary and often invasive tests for years so he could enrich himself. The verdict will ensure he is held accountable for defrauding Medicaid and putting New Yorkers at risk.

The kickback scheme involved subjecting patients to medically unnecessary and invasive radiological testing without the knowledge or consent of referring physicians. These extra tests, including MRIs with contrast, involved invasive procedures like injections. Toobian then billed Medicaid for these unnecessary tests.

Collaborating in the investigation were the U.S. Department of Health and Human Services, Office of the Inspector General, the New York State Department of Health, and Medicaid Managed Care Organizations (MCOs) such as HealthFirst, MetroPlusHealth, and United Healthcare.

The Office of the Attorney General extended gratitude for the cooperation of various agencies and individuals involved in the investigation. The trial was conducted by the Medicaid Fraud Control Unit (MFCU), with support from the Division for Criminal Justice.