Anchorage court sentences doctor Claribel Tan to prison over massive healthcare fraud scheme that deceived patients and drained millions from insurance providers in Alaska

A long-running medical fraud case has come to a dramatic close after an Anchorage-based physician was handed a prison sentence for orchestrating a massive healthcare scam that stretched over a decade.

Authorities say the case exposed a deeply troubling pattern of deception involving patient care, insurance billing, and tax evasion.

How the Clinic Operated Behind the Scenes

Dr. Claribel Tan, 61, ran a rheumatology clinic alongside her husband, Daniel Tan, 70, who managed administrative operations.

The clinic focused on treating chronic autoimmune and joint-related conditions such as rheumatoid arthritis, osteoarthritis, and psoriatic arthritis—conditions that often require consistent and carefully monitored medication.

While patients trusted they were receiving proper treatment, prosecutors revealed a very different reality unfolding behind clinic doors.

The Fraudulent Billing Scheme Explained

Between 2009 and 2024, the couple engaged in a widespread scheme that involved misleading patients about the medications they were receiving.

Instead of administering legitimate, purchased drugs, Dr. Tan frequently used free samples, expired medications, or entirely different substances than prescribed.

Despite this, the clinic billed insurance providers as though patients had received full, legitimate doses.

Records showed a staggering discrepancy: while claims were made for 4,829 units of medication, only 369 units had actually been purchased.

Daniel Tan played a key role by ensuring minimal drug orders while still submitting large volumes of insurance claims.

The couple also falsified records, exaggerating consultation times and billing for services that were never performed.

Health Risks and Financial Damage

The implications went far beyond financial fraud.

Patients were unknowingly exposed to expired or inappropriate medications, putting their health at serious risk.

Meanwhile, insurance companies suffered losses exceeding $12.5 million due to the fraudulent claims.

Tax Evasion Adds to Legal Trouble

The deception extended into the couple’s financial reporting.

From 2014 to 2017, they inflated business expenses to reduce taxable income.

Then, from 2018 to 2021, they failed to file tax returns altogether.

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This resulted in more than $4.2 million in losses to the IRS, compounding the severity of their crimes.

Federal Raid Reveals Disturbing Evidence

In July 2019, federal agents raided the clinic and uncovered alarming conditions.

Investigators found stockpiles of expired drugs, improperly stored syringes, and free samples clearly labeled as not for sale.

Some medications were mixed together in unsafe ways, raising further concerns about patient safety.

Although the couple briefly attempted to correct their practices after the raid, authorities say they soon returned to fraudulent activities.

Guilty Plea and Sentencing

By July 2024, a federal grand jury had indicted the couple.

In November 2025, both pleaded guilty to charges of healthcare fraud and tax evasion.

Dr. Claribel Tan was sentenced to six and a half years in prison, followed by three years of supervised release.

Her husband received three years of probation, including two years under home confinement.

As part of the consequences, Dr. Tan also gave up her medical license.

Financial Penalties and Asset Seizures

Authorities moved aggressively to recover stolen funds.

Approximately $10.4 million linked to the fraud was seized, and the couple agreed to forfeit it.

They also paid $6.3 million toward future restitution and an additional $1.8 million to settle civil claims under the False Claims Act.

A separate hearing will determine how much restitution will be paid to victims.

Multi-Agency Investigation Behind the Case

The investigation brought together several federal agencies, including the FBI, IRS Criminal Investigation, Department of Defense Criminal Investigative Service, and the Food and Drug Administration’s Office of Criminal Investigations, among others.

Prosecutors credited the coordinated effort for successfully uncovering and dismantling the scheme.

Impact and Consequences

This case highlights the serious consequences of abusing trust within the healthcare system.

Patients not only lost money but were also exposed to unsafe medical practices that could have long-term health effects.

Financially, insurance providers and federal agencies suffered millions in losses, reinforcing the need for stricter oversight in medical billing and pharmaceutical handling.

The case also sends a strong message to healthcare professionals about the legal and ethical responsibilities tied to patient care.

What’s Next?

A restitution hearing is expected to determine how victims will be compensated.

Authorities are also encouraging affected patients to come forward if they believe they were impacted.

Meanwhile, regulatory bodies may tighten monitoring systems to prevent similar schemes from going undetected for years.

Summary

A trusted medical practice turned into a large-scale fraud operation, ultimately leading to prison time, financial penalties, and the loss of a medical career.

The case underscores the importance of accountability in healthcare and the far-reaching consequences of violating that trust.

Bulleted Takeaways

• Dr. Claribel Tan received a 6.5-year prison sentence for healthcare fraud and tax evasion
• Daniel Tan was sentenced to probation with home confinement
• The scheme lasted 15 years and defrauded insurers of over $12.5 million
• Patients were injected with expired, free, or incorrect medications
• The couple falsely billed for thousands of medication units they never purchased
• Tax evasion resulted in over $4.2 million in losses to the IRS
• Federal agents discovered unsafe and improperly stored drugs during a clinic raid
• Over $10 million in fraudulent proceeds has been seized
• Additional millions have been paid toward restitution and civil settlements
• A restitution hearing will determine compensation for victims