Abstract: A method of reducing the effects of Compton scattered photons detected in a gamma ray detection arrangement includes the steps of receiving data responsive to energy states of the detected photons and storing the data in memory locations corresponding to predetermined image grid points, grouping the stored data, whereby a coarser grid having fewer image grid points is produced, calibrating the gamma ray detection arrangement by utilizing a spectral shape corresponding to a calibration function which is expected to correspond to a first data set corresponding to unscattered ones of the detected photons, processing the stored data for at least selected ones of the predetermined grid points employing minimization of a function which includes a product of an energy regularization term times an energy regularization parameter, as well as a spatial regularization term times a spatial regularization parameter, for separating the stored data into the first data set corresponding to unscattered ones of the detected ph