The convictions of a husband and wife were upheld on February 2nd by the Second Circuit Court of Appeals. The couple was convicted of soliciting and receiving kickbacks, among other things. They argued that, in fact, all they did was to recommend physicians refer patients to a certain imaging center. Their argument was that the doctors used their own judgment in referring patients. Audio and video records of their activities, however, supported the prosecution’s case that in fact the couple actually paid cash to referring physicians for referrals made by the doctors to the imaging center. The couple will spend about two years in prison. The court did not address the legal issue of whether or not commission based compensation arrangements for marketing services were permissible.
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