A federal investigation of theft and fraud in the radiology departmentsof New Jersey hospitals has resulted in jail time and fines forseveral people who were sentenced last week for their involvementin the scams. Dubbed "Operation Catscam,"
A federal investigation of theft and fraud in the radiology departmentsof New Jersey hospitals has resulted in jail time and fines forseveral people who were sentenced last week for their involvementin the scams.
Dubbed "Operation Catscam," the FBI investigationuncovered several rings that defrauded hospitals and x-ray filmmanufacturers of millions of dollars by stealing film, forginginvoices and arranging kickbacks and bribes. Employees from hospitalradiology departments, x-ray film distributors and film manufacturerswere involved in the scams, which were cracked earlier this year(SCAN 6/17/92).
U.S. District Judge Maryanne Trump Barry handed down the firstsentences in the case last Thursday. The nine defendants sentencedare:
Eleven other defendants have pleaded guilty to charges relatedto the scams and are awaiting sentencing, according to assistantU.S. attorney Ralph Marra. Most of the defendants sentenced lastweek were either middle or minor players in the scams, he said.Several cooperated with authorities and were given reduced sentences.
Despite the size and scope of the fraud, Marra said that thecase is not an example of organized crime infiltrating radiology.The rings were loosely connected in some instances but for themost part operated independently around each hospital.
The government's investigation is continuing, Marra said.
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