The manager of four New York magnetic resonance imaging centers pleaded guilty to paying physicians about $870,000 for Medicare patient referrals from 1995 to 2000. Jay Katz also pleaded guilty to evading $3.2 million in federal income taxes from 1996 to 1998 and falsifying tax returns. The pleas were filed in U.S. District Court in Manhattan on Wednesday. Katz admitted to having the MRI centers pay more than $55 million in "billing" and "management" fees to corporations he owned. During that time, the MRI centers had gross receipts of more than $70 million, the U.S. attorney in Manhattan said. Katz faces up to 10 years in prison and $500,000 in fines. His sentencing is scheduled for Nov. 14. -- by Mark Taylor
MRI centers' manager admits massive fraud scheme
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