Feds raid medical imaging firm

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The federal government on Tuesday seized assets totaling more than $400,000 from the owner of a medical imaging firm in New York, for suspicion of selling unauthorized copyrighted copies of radiology software to hospitals and medical companies, according to The Buffalo News.

The Buffalo News reported that Christopher Boyd, president and owner of the Cheektowaga, N.Y.-based B &L Medical, is accused of selling copies of medical imaging software owned by GE Healthcare, MedWeb and other companies for preserving and transmitting digital x-rays.

Numerous medical groups through the United States purchased the software during the last six or seven years, according to affidavits submitted by FBI and Internal Revenue Service agents. The software had been converted to be used without accompanying hardware, the executives testified, and still bore the original serial numbers, reported The Buffalo News.

No criminal charges have been filed against the company, which grossed more than $7 million in fraudulent sales, though an investigation is underway, according to the U.S. Attorney's office in Western New York, according to The Buffalo News.

The Buffalo News also said that the federal government seized assets alleged to have been transferred to Mobile Digital Imaging of East Aurora, N.Y., a company affiliated with Boyd.

FBI agents had obtained search warrants on Oct. 25, 2006, for B &L’s offices, as well as Boyd’s home in Orchard Park, N.Y. In January, their investigation expanded to include money laundering, which led to the involvement of IRS agents, who documented about $1.5 million in undeclared income from 2002 to 2005 and included a number of expenses apparently paid in cash, according to The Buffalo News.