UPDATE 6/22/11 @ 6:30 p.m.
COAL GROVE, Ohio (WSAZ) -- Mass radiation poisoning is the overwhelming concern after a state and federal raid Wednesday on a local doctor and imaging center.

We’re talking about suspected medical insurance fraud on a grand scale -- linked to maybe thousands of unneeded CAT (CT) scans.

The raid Wednesday morning involved numerous agencies -- everybody from the local sheriff to the department of defense, because patients connected to the military are involved.

We’re told the raid on a Coal Grove medical center involves multi-millions in suspected Medicaid and Medicare fraud. And agents say much of the illegal billing came from a family of unethical doctors who blatantly disregarded human health.

“I got the injections and I got the scans, Betty York said.”

She is one of many patients across the Tri-State who see Dr. Peter Tsai at the Watkins-Tsai Medical Center.

We were asked not to show the more than 40 state and federal undercover agents collecting boxes and boxes of medical records.

Investigators say Dr. Peter Tsai examined his patients, then sent them across the hall to his parents’ CAT scan center.
And agents say all three fraudulently billed the government for millions.

“All patients of his had to have CAT scans, and they were either unneeded or unbilled procedures.”

Federal agents say since 2008 the small town medical center led the entire nation in billing for CAT scans -- more than the whole state of Florida.

And some patients were given an unheard of more than 100 CAT scans during a two-year period

”Some children had multiple scans," Lawless said. "We're scared that patients were abused."

York said, "I had CAT scans. It's scary, you don't know what's going to happen to you."

We talked to two prominent area doctors Wednesday. They told us someone with a serious medical condition would maybe get four CAT scans a year; 50 would be blatantly unethical.

The doctors told us that CT scans give off more radiation than X-rays, and excessive radiation can lead to numerous cancers.

There were no arrests made Wednesday. We are told agents have given the state medical board detailed information on this continuing investigation

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ORIGINAL STORY
COAL GROVE, Ohio (WSAZ) -- Two local business are currently being raided for what the investigators on the scene tell WSAZ.com is a multi-million dollar billing fraud investigation.

40 local, state and federal agencies are involved in a raid at Dr. Peter Tsai's Medical Office and the Watkins-Tsai Imaging Center in Coal Grove.

The two businesses are located just off US 52 at the Coal Grove exit on Marion Pike.

Investigators tell WSAZ.com this is a multi-million dollar state and federal billing fraud investigation.

Lawrence County Sheriff Jeff Lawless tells WSAZ.com that Dr. Peter Tsai's father, Dr. Thasiung Tsai, and mother, Ruey Tsai, own the imaging center next door to his office. He tells WSAZ.com that they are believed to be responsible for more cat scans since 2008 than any other office in the nation.

Lawless also tells WSAZ.com that some patients have received 120 to 140 cat scans in a two-year time frame.

We have a crew on the scene. Keep clicking on WSAZ.com for the latest information.