United States Attorney Richard Hartunian, Northern District of New York, says Imagimed LLC and its former owners are to pay $3.57 million to settle allegations that they submitted false claims to federal health care programs for magnetic resonance imaging services.

Imagimed, William Wolf III, Dr. Timothy Greenan and the former chief radiologist, Dr. Steven Winter agreed to the civil settlement to resolve allegations that, from 2001 to 2008, claims were submitted to Medicaid, Medicare and TRICARE for MRI scans using a contrast die without having the required direct supervision of a qualified physician.  Federal regulations require a doctor present in the event of the potential adverse side-effect of anaphylactic shock.

Fifteen facilities owned by Imagimed under the name 'Open MRI' operated primarily in New York State.

Federal prosecutors say from July 1, 2005 to April 23, 2008, there were claims for services referred to Imagimed by doctors with whom the company had improper financial relationships.  The prosecutors say the company entered into sham on-call arrangements, provided pre-authorized services without charge and provided various gifts to certain referring physicians.