Boston MA – February 18, 2026 | By
WHAT’S HAPPENING
Who was sentenced in Boston federal court and for what crime?
James Rausch, 57, of Point Jefferson Station, NY, was sentenced on February 13, 2026, for conspiring to offer and pay kickbacks to doctors for medically unnecessary brain scans.
When did the multi-million dollar kickback scheme operate?
The conspiracy involving James Rausch and others to offer kickbacks to doctors for TCD scans occurred from approximately March 2015 through September 2020.
What was the financial impact of this fraudulent scheme in Massachusetts?
The scheme led to $70.6 million in fraudulent bills to Medicare, resulting in approximately $27.2 million disbursed to the medical diagnostics company.
What penalties did James Rausch receive in Boston federal court?
Rausch received an eight-month prison sentence, one year of supervised release, and was ordered to pay $17,573,642 in restitution, a $408,437 forfeiture, and a $20,000 fine.
A former sales director from New York, James Rausch, was sentenced to eight months in prison in Boston federal court for his role in a multi-million dollar kickback scheme. He conspired to pay doctors for unnecessary brain scans, defrauding Medicare of approximately $70.6 million. Rausch was also ordered to pay over $17 million in restitution.
New York Man Sentenced in Boston Federal Court for Multi-Million Dollar Kickback Scheme
BOSTON – A New York-based former sales director, James Rausch, 57, of Point Jefferson Station, N.Y., was sentenced on February 13, 2026, in federal court in Boston to eight months in prison for his role in a multi-million dollar kickback scheme. Rausch was found guilty of conspiring to offer and pay kickbacks to doctors in exchange for ordering medically unnecessary brain scans. U.S. District Court Judge Nathaniel M. Gorton also ordered him to pay $17,573,642 in restitution, a forfeiture of $408,437, and a $20,000 fine, to be followed by one year of supervised release.
What was the Nature of the Kickback Scheme?
The scheme involved Rausch conspiring with others, including two managers for a mobile medical diagnostics company, to provide illicit payments to doctors. These payments were intended to incentivize medical professionals to order transcranial doppler (TCD) scans, which are brain scans that measure blood flow, without medical necessity.
How Did the Conspiracy Operate?
From approximately March 2015 through September 2020, Rausch and his co-conspirators agreed to offer and pay doctors kickbacks, both in cash and by check. The value of these kickbacks was directly tied to the number of TCD ultrasounds the doctors ordered. To conceal the true nature of these illegal payments, fraudulent rental and administrative service agreements were created. These sham agreements falsely suggested that doctors were being compensated for the use of their office space or administrative resources at fair market value, rather than for the volume or value of referrals.
Financial Impact of the Fraudulent Claims
The extensive scheme led to the submission of approximately $70.6 million in fraudulent bills to Medicare. As a result, Medicare disbursed around $27.2 million to the mobile medical diagnostics company for these illicit claims. Rausch personally received approximately $408,000 from his involvement in the operation.
When Did James Rausch Plead Guilty?
Rausch pleaded guilty in June 2025 to one count of conspiracy to violate the Anti-Kickback Statute.
Additional Details Regarding the Scheme’s Operation
The mobile medical diagnostics company involved in the conspiracy also coached healthcare providers to utilize specific, often improper, diagnostic codes such as “vertebrobasilar insufficiency.” This tactic aimed to guarantee reimbursement from insurers for services that were not medically indicated.
Summary of Key Case Features
| Defendant | James Rausch, 57, of Point Jefferson Station, N.Y. |
| Sentence Date | February 13, 2026 |
| Court Location | Federal Court in Boston |
| Charge | Conspiracy to violate the Anti-Kickback Statute |
| Prison Sentence | Eight months |
| Supervised Release | One year |
| Restitution Ordered | $17,573,642 |
| Forfeiture | $408,437 |
| Fine | $20,000 |
| Scheme Period | March 2015 to September 2020 |
| Total Fraudulent Bills to Medicare | Approximately $70.6 million |
| Medicare Payments to Company | Approximately $27.2 million |
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