Diagnostics company owner convicted in $7.5 million fraud that resulted in two patient deaths

The owner of Alpha Diagnostics in Maryland has been convicted of bilking Medicare and Medicaid of more than $7.5 million in a fraud case authorities say resulted in the death of two patients because their radiology tests were not interpreted by a qualified radiologist.

A federal jury on February 17 convicted Alpha Diagnostics owner Rafael Chikvashvili, 67, of Baltimore, after a two-and-a-half week trial, according to the U.S. Attorney's Office, District of Maryland.

Jurors learned that Chikvashvili holds a PhD in mathematics, but was never a medical doctor or licensed physician. Timothy Emeigh, vice president in charge of Operations at Alpha Diagnostics, was a licensed radiologic technologist but not a physician, authorities said.

In the two cases in which the patients later died, non-physician Alpha Diagnostics employees reviewed X-ray images and failed to detect congestive heart failure, according to authorities.

The first patient was not transferred to an acute care facility for treatment, as is standard medical practice, but remained in a rehabilitative nursing home, authorities said. The patient died four days after the misread X-ray, they said.

The second patient, who was scheduled to undergo elective surgery, had a chest X-ray to determine if the surgery was safe. The non-physician Alpha Diagnostics employee failed to detect the mild congestive heart failure, the patient was cleared for elective surgery and experienced significant bleeding, according to the evidence presented at trial. She died six days after the misinterpreted X-ray, authorities said.

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According to witness testimony, in June 2012, when Emeigh traveled to Jamaica for a vacation, Chikvashvili directed him through text messages and telephone calls, to view medical images using his personal laptop in his hotel room, and then draft false physician interpretation reports, according to the trial evidence. 

Chikvashvili had employees draft licensed physician's examination reports. He would then affix the handwritten signature of an actual physician to the report, or forge the physician's signature himself, authorities said.

From 1997 through 2013, Chikvashvili created false radiology, ultrasound and cardiologic interpretation reports and submitted insurance claims for medical examination interpretations that were never completed by licensed physicians or that were never completed at all, authorities said. He also submitted claims for transportation and other charges that Alpha Diagnostics was not entitled to receive, they said.

Alpha Diagnostics was a portable diagnostic service operating in Maryland, Delaware, Pennsylvania, Virginia and the District of Columbia, but was headquartered in Owings Mills, Maryland, where Chikvashvili worked full time.

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Chikvashvili was convicted of healthcare fraud, including two counts of healthcare fraud resulting in death; wire fraud conspiracy; wire fraud; false statements; and aggravated identity theft, according to U.S. Attorney Rod J. Rosenstein.

Chikvashvili faces a maximum sentence of life in prison for each of the two counts of healthcare fraud resulting in death; 10 years in prison for each of nine counts of health care fraud; 20 years in prison for each of eight counts of wire fraud and for the conspiracy count; a maximum of five years in prison for each of 11 counts of false statements relating to healthcare matters; and a mandatory two years, consecutive to any other sentence imposed, for two counts of aggravated identity theft.

Timothy Emeigh, 51, of York Springs, Pennsylvania previously pleaded guilty to healthcare fraud and is awaiting sentencing.

"Health care fraud has consequences, in money wasted and lives lost," Rosenstein said.

Twitter: @SusanJMorse