ANCHORAGE, Alaska – Dr. Claribel Tan, an Anchorage rheumatologist, was sentenced Tuesday to six and a half years in prison for orchestrating a $12.5 million health care fraud scheme and evading more than $4 million in taxes. Her husband, Daniel Tan, was sentenced to three years of probation, with two years to be served under home confinement, for his role in the 15-year fraudulent operation. The case, which involved the systematic deception of patients and insurance providers, highlights a significant breach of trust within the Alaskan health care system.
The Tans operated a rheumatology clinic in Anchorage beginning in 2005, specializing in the treatment of autoimmune and musculoskeletal diseases like rheumatoid arthritis, osteoarthritis and psoriatic arthritis. According to court documents, the scheme began to unfold in 2009, and continued until 2024. Prosecutors detailed how Dr. Tan routinely deceived patients regarding the type and dosage of medications administered through injections, fraudulently billing insurance plans for medications that were either not purchased or not given to patients. The couple’s actions created substantial health risks for those seeking treatment for debilitating conditions.
Years of Deception and Underdosing
The extent of the deception was revealed through covert video recordings of Dr. Tan treating patients. These recordings confirmed that Dr. Tan routinely underdosed patients, substituted free samples or incorrect medications for prescribed drugs, administered expired medications, and even injected patients with medications intended for others. The scheme involved a staggering discrepancy between billed and actual medication usage: the Tans claimed to have administered 4,829 units of medication while only purchasing 369 units, according to court documents. This deliberate misrepresentation allowed them to inflate their profits and evade taxes.
Daniel Tan played a crucial role in the fraud, creating and submitting false insurance claims and ordering insufficient quantities of medication for the clinic. The couple also falsified records regarding the length of patient visits and submitted claims for services never rendered. The U.S. Attorney’s Office for the District of Alaska stated that the scheme caused a loss of over $12.5 million to more than 10 insurance plans.
Evidence Uncovered During a 2019 Search
Law enforcement executed a search warrant at the clinic in July 2019, uncovering a disturbing array of evidence. Investigators found stockpiles of expired medications, free samples marked as “not for sale,” and improperly stored syringes. The discovery prompted a temporary shift in the Tans’ practices, with a brief period of purchasing the medications they billed for. Although, in 2021, they reverted to their fraudulent billing practices, continuing the scheme until a federal grand jury indicted them in July 2024. The Department of Justice details the full scope of the investigation.
Tax Evasion and Financial Gains
Beyond the health care fraud, the Tans engaged in a deliberate scheme to conceal their ill-gotten gains from the IRS. They overstated expenses and falsely underreported income on their tax returns for 2014, 2015, and 2017. From 2018 to 2021, they willfully failed to file tax returns altogether, resulting in a tax loss of over $4.2 million to the government. The couple’s actions demonstrate a calculated effort to profit from their fraudulent activities while evading their legal and financial obligations.
In November 2025, both Dr. And Mr. Tan pleaded guilty to one count of health care fraud and one count of tax evasion. Prior to sentencing, Dr. Tan requested a sentence of 33 to 41 months of house arrest to care for her ailing husband, but U.S. District Court Judge Sharon Gleason imposed the full 78-month prison sentence requested by prosecutors. Dr. Tan has also surrendered her medical license.
Recovery of Funds and Restitution
Law enforcement has recovered a significant portion of the fraudulently obtained funds. The U.S. Attorney’s Office seized approximately $10.4 million in health care fraud proceeds from the Tans in 2024 and 2025. The court ordered Dr. Tan to serve three years of supervised release following her prison sentence and scheduled a separate hearing to determine restitution. The Tans have already submitted a $6.3 million payment towards their future restitution judgment and paid an additional $1.8 million to settle civil claims under the False Claims Act.
U.S. Attorney Michael J. Heyman emphasized the severity of the crime, stating, “For well over a decade, Dr. Tan and her husband operated a fraud scheme and squirreled away millions of dollars at the expense of their patients, callously disregarding the medical needs of those suffering from debilitating diseases so they could become rich.” He added, “Finally, their dangerous deceit is over.”
Individuals who believe they may have been victims of the Tans’ fraud are encouraged to contact the U.S. Attorney’s Office Victim/Witness Unit at [email protected] for information regarding potential restitution.
The investigation was led by the Defense Criminal Investigative Service (DCIS) and IRS Criminal Investigation, with assistance from multiple federal agencies, including the FBI and the Department of Veterans Affairs Office of Inspector General.
Disclaimer: This article provides information about a legal case and should not be considered legal advice. Individuals with questions about health care fraud or tax evasion should consult with qualified legal professionals.
The next step in this case will be the scheduling of a hearing to determine the full amount of restitution owed to the victims of the fraud. Further updates will be available on the Department of Justice website. We encourage readers to share this information and to report any suspected instances of health care fraud to the appropriate authorities.
