A Lakewood oncologist accused of over-billing the government for cancer treatment medications has agreed to pay $3.1 million to settle claims of fraud.
Between 2006 and 2009, Dr. Alfred H. Chan routinely billed federal health-care programs for double the doses of drugs prescribed to his patients, federal prosecutors contend. Chan and his wife, Judy, face a criminal indictment in U.S. District Court.
Federal prosecutors learned of the practice after one of Chan’s former employees filed a whistleblower lawsuit. The employee’s suit provided Chan’s treatment orders, which showed the actual drug dosages prescribed to patients, as well as his invoices, which revealed the overbilling.
Chan and his wife fled the country in 2011 after the practice was discovered, according to a statement from the U.S. Attorney’s office.
“They continue to try to avoid criminal sanctions by remaining outside the U.S.,” said U.S. Attorney Jenny A. Durkan. “This civil settlement recoups the financial damage they inflicted on taxpayer-funded programs.”
As a consequence of reporting the fraudulent billing, Chan’s former employee will receive a portion of the settlement: $620,000.