Christopher Boyd & Robin Boyd GUILTY OF SOFTWARE COPYRIGHT FRAUD from General Electric Healthcare & Medweb

December 8, 2008

Christopher Boyd, 63, and his wife, Robin Boyd, 58, of Orchard Park, New York, pleaded guilty before U.S. Magistrate Judge Hugh B. Scott, to criminal fraud charges related to their business, B&L Medical, located at 2795 Genesee Street, Cheektowaga, New York. Christopher Boyd pled guilty to felony Copyright charges, namely the theft of proprietary information owned General Electric Healthcare, Inc. and Nexsys Electronics, d/b/a Medweb. Christopher Boyd also pled guilty to felony Tax Fraud. Robin Boyd pled guilty to a misdemeanor Copyright charge related to the same companies. The felony charges against Christopher Boyd carry a maximum penalty of eight years in prison, a fine of $350,000, or both. The misdemeanor charge against Robin Boyd carries a maximum penalty of one year in prison, a fine of $100,000, or both.

In addition, the Boyds have agreed to restitution and tax liability of more than $2.5 million, which includes the forfeiture of cash and property previously seized by the government totaling approximately $1.3 million.

Assistant U.S. Attorney Martin J. Littlefield, who handled the case, stated that B&L Medical under the direction of Christopher Boyd, engaged in fraudulent conduct by selling unauthorized copyrighted copies of tele-radiological software owned by GE HealthCare and Medweb. The investigation also revealed that in the process of obtaining illegal proceeds from such sales, the Boyds also engaged in money laundering and federal tax fraud. As a result of the fraud, numerous medical groups throughout the United States unwittingly purchased illegal tele-radiological software from B&L Medical over the last six-to-seven years. The software related mostly to the preservation and transmission of digital x-rays for physicians. Although the alleged violations of copyright law involve the sale of such software, there is no evidence to date that any of the software being utilized by the medical groups presented any medical, health or safety issue to the medical groups or their patients. Both GE HealthCare and Medweb have fully cooperated with the investigation.

The plea was the culmination of an investigation on the part of Special Agents of the FBI under the direction of Special Agent-In-Charge Laurie Bennett, and the IRS under the direction of IRS-CID Special Agent-In-Charge Patricia J. Haynes

A sentencing date was not yet set and will be scheduled before U.S. District Judge William M. Skretny in Buffalo New York.