a reply. We have since learned that much has occurred since our document was
sent. IMPATH now stands accused of securities fraud and the principals of the
company are facing multiple class actions suits and an SEC investigation.
IMPATH was a company with over 1200 employees and an annual income of over one quarter of a billion dollars. Immediately after completion of his residency, Dr. Berkowitz’s became Vice President of Information Services for IMPATH. He maintained his private residence in Silver Spring, Maryland, not far from the National Cancer Institute in Bethesda. We speculated in our document that his actual role was to serve as a ‘listening post’ for research data at the NCI that could be used by IMPATH to grow their business. One of the major components of the company was the "IMPATH Predictive Oncology" division (IPO) which was made possible, according to their press release, by the acquisition of Dr. Berkowitz’s ‘Physician Choice, Inc.’
The reader of this document should read reporter David Willman’s recent expose (12/22/04) of the unethical behavior of multiple researchers at the National Institutes of Health (see http://www.latimes.com). Dr. Berkowitz appears to have been using Government data gathered at the NCI for personal profit. According to the LA Times, this seems to have been commonplace. (see the end of this document for instructions on How to View the Exhibits)
On October 22, 2001, IMPATH announced it was reimbursing the Government $9 million dollars to settle an investigation over their Medicare billing practices. IMPATH declared bankruptcy in the summer of 2003 after an SEC audit alleged they had systematically misrepresented their accounts receivable to their investors. Dr. Berkowitz left the company after the initial Medicare investigation was commenced.
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