Fraud Roundup

lll. Madigan joins suit against radiology centers over kickbacks
Illinois Attorney General Lisa Madigan intervened in a lawsuit against several Chicago area radiology centers over their payment of illegal kickbacks to referring doctors. The complaint alleges that the radiology centers entered into sham “lease” agreements with doctors under which the doctors pay a reduced rate for MRI and CT scans but charges the patient’s insurance a higher rate, and then keep the difference.

In 2006, a private plaintiff, the owner of radiology centers in Illinois, filed the lawsuit in Cook County Circuit Court on behalf of the State. The court maintained the complaint under seal Attorney General Madigan’s office investigated the allegations and determined whether to join the case. The complaint names MIDI, LLC, a Virginia-based company that operates 13 Open Advanced MRI facilities in Illinois. The complaint also names several other Chicago area radiology centers.

The lawsuit claims the defendants’ actions violate the Consumer Fraud and Deceptive Business Practices Act, as well as Illinois’ anti-kickback law, the Insurance Claims Fraud Prevention Act. It asks the court to order the defendants to stop paying the illegal kickbacks and seeks money damages, restitution and penalties.

Source: Office of the Illinois Attorney General

Former Mich. mayor charged with arson, insurance fraud
Former Saginaw Mayor Wilmer Jones Ham was recently charged with arson and insurance fraud in the burning of her 1986 Mercedes-Benz.

Ham, 56, is the mother of ex-Detroit Pistons player Darvin Ham, who was part of the 2004 NBA championship team. He also played for six other teams. The New Jersey Nets waived him Oct. 28.

Michael D. Carpenter, prosecutor in neighboring Midland County, filed the felony charges against Ham in Saginaw County Circuit Court. She now serves on the Saginaw City Council and as mayor pro tem.

Carpenter is handling the Saginaw County case as a special prosecutor.

Ham presented a statement from her handyman that he accidentally set fire to the 1986 Mercedes diesel. Investigators say they have been unable to corroborate the confession.

Messages seeking comment from Ham were left by The Associated Press at her home and city office. Defense lawyer James F. Piazza said she would plead not guilty.

Arson of personal property worth between $1,000 and $20,000 carries up to five years in prison. Filing a fraudulent insurance claim carries up to four years, Carpenter said.

Ham is accused of setting the car on fire March 9, 2006, and trying to make a false insurance claim. Prosecutors said last spring that she was a person of interest in the fire.

Ham said last month that she would not seek re-election.

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