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NY Manager Pleads Guilty to Kickback Scheme and Medicare Fraud
A New York operations manager, Timothy Doyle of Selden, N.Y., pleaded guilty today in federal court in Boston to conspiring to offer and pay kickbacks to physicians in exchange for ordering medically unnecessary brain scans. Mr. Doyle admitted to one count of conspiracy to violate the anti-kickback statute. U.S. District Court Judge Nathaniel M Gorton scheduled sentencing for April 3, 2025.
Between at least June 2013 and September 2020, Mr. Doyle conspired with others, including two managers from a mobile medical diagnostics company that performed transcranial Doppler (TCD) scans, to establish kickback agreements with various physicians. TCD scans are brain scans measuring blood flow in parts of the brain. Mr. Doyle and his alleged co-conspirators agreed to offer and provide kickbacks, some in cash and others by check, based on the number of TCD ultrasounds ordered by physicians. They created purported rental and administrative service agreements that, on paper, appeared to compensate doctors for the TCD company’s use of space and administrative resources at fair market value rather than the volume or value of referrals. These agreements were fraudulent and concealed the true nature of the per-test payments.
This scheme resulted in fraudulent bills totaling approximately $70.6 million to Medicare, which paid about $27.2 million to the TCD company for these fraudulent claims. The charge of conspiracy to violate the Anti-Kickback Statute carries a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutes governing criminal case sentences.
Report your tax dodging ex to the IRS and collect a reward
If you know someone who’s dodging their taxes, you can report them to the IRS and potentially get a reward for it. The IRS Whistleblower Office offers monetary awards to people who provide information that helps the IRS. The amount you can get ranges from 15 to 30 percent of the money collected based on your information. However, you won’t get paid until the IRS has made a final decision and the taxpayer has no more options to appeal or claim a refund.
Individuals use IRS Form 211, Application for Award for Original Information, to submit allegations of tax noncompliance. The form should include:
- A written narrative describing the alleged noncompliance.
- Supporting information like books, records, receipts, bank records, or emails.
- Details on any supporting evidence not in possession and its location.
- Explanation of how and when the whistleblower learned about the issue.
- Description of any relationship with the subject of the claim (e.g., family member, employee).
- Whistleblower’s signature under penalty of perjury and date.
Individuals must then mail the Form 211 with supporting documentation to:
Internal Revenue Service
Whistleblower Office – ICE
1973 N Rulon White Blvd.
M/S 4110
Ogden, UT 84404
Who is eligible to file a claim for award?
Anyone not listed below can file a claim and receive an award under section 7623. The Whistleblower Office will reject claims from ineligible whistleblowers and provide written notice of the rejection. Ineligible individuals include:
- Employees of the Department of Treasury or those who were employees when they obtained the information.
- Federal government employees who gained the information through official duties.
- Individuals required or prohibited by federal law or regulation to disclose the information.
- Those with access to the information through a federal government contract.
- Individuals filing claims based on information from ineligible whistleblowers to circumvent rejection.
What are the rules for getting an award?
Internal Revenue Code (IRC) section 7623 provides provisions for awards, sometimes mandatory, when the Internal Revenue Service (IRS) takes action based on information from a whistleblower. Claims that offer specific and credible information regarding tax underpayments or violations of internal revenue laws that lead to collected proceeds may qualify for an award.
The Bipartisan Budget Act of 2018 expanded the definition of proceeds to include penalties, interest, additions to tax, and additional amounts under internal revenue laws, as well as any proceeds arising from laws the IRS is authorized to administer, enforce, or investigate. This encompasses criminal fines, civil forfeitures, and violations of reporting requirements.
Generally, the IRS will pay an award of at least 15 percent, but not more than 30 percent, of the proceeds collected attributable to the whistleblower’s information. The percentage decreases if the claim is based on public sources or if the whistleblower planned and initiated the noncompliance actions. Awards are processed as either a section 7623(a) or 7623(b) award.
To qualify for the IRC section 7623(b) award program, the information must:
- Relate to a tax noncompliance matter where the tax, penalties, interest, additions to tax, and additional proceeds in dispute exceed $2,000,000; and
- Relate to a taxpayer, specifically for individual taxpayers, one whose gross income exceeds $200,000 for at least one of the tax years in question.
If a submission does not meet the criteria for IRC section 7623(b), the IRS will consider it for the discretionary program under IRC section 7623(a) of the Code.
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