A class action lawsuit has been filed against the neurosurgeon and medical supply companies for allegedly exchanging illegal kickbacks for medical equipment paid for by Medicare and Medicaid. The lawsuit was filed in White County Circuit Court and claims Chan asked medical equipment distributors Orthofix, Osteotech, Alphatec, and Signus for part of the commission on devices used in spine surgeries.
A distributor told FBI agents and Department of Health and Human Services investigators an unidentified woman made an agreement to offer half of her commissions to Chan, who performed surgeries at Central Arkansas Hospital and the White County Medical Center. FBI agents installed video and audio surveillance in Chan's office and documented the woman making three controlled payoffs to Chan with marked money, with Chan taking the money.
