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Home > News > April, 2011

Federal Probe Into Chicago Surgery Center Owner Widens

Dozens of docs and ASC employees receive grand jury subpoenas over allegation of improper surgeon payments.

Published: April 15, 2011
Categories: Business Management, Legal/Regulatory, News

At least 30 Chicago-area doctors have been subpoenaed as part of a federal investigation into allegations that a prominent surgery center entrepreneur improperly paid surgeons to bring cases to his facilities, according to a news report.

Federal investigators issued search warrants in January for 2 Chicago surgery centers owned by Raghuveer Nayak, a wealthy businessman who has ties to former Illinois Gov. Rod Blagojevich and U.S. Rep. Jesse Jackson Jr., reports the Chicago Sun-Times, citing anonymous sources "with knowledge of the investigation."

The FBI and IRS are investigating whether Mr. Nayak paid doctors hundreds of dollars for every surgical case they brought to his centers. Mr. Nayak's attorney declined to comment on the investigation.

Sources tell the Sun-Times that at least 30 physicians and 10 of Nayak's employees have been subpoenaed by a federal grand jury in connection with the case. According to the report, several of the doctors have been offered or granted immunity in exchange for their testimony. But if the physicians admit wrongdoing, their medical licenses could still be in jeopardy.

Mr. Nayak was previously accused of offering to raise money for then-Gov. Blagojevich in exchange for appointing Rep. Jackson to the Senate seat vacated by Pres. Obama in 2008. A longtime friend and fundraiser for Rep. Jackson, Mr. Nayak has cooperated with authorities, telling them in 2008 that the congressman had approached him with the idea of offering to raise money for the governor in exchange for the Senate appointment. Rep. Jackson denied that claim and was never charged. Former Gov. Blagojevich faces retrial next week over his alleged attempt to sell the Senate seat.

Irene Tsikitas

© Copyright Herrin Publishing Partners LP 2011. REPRODUCTION OF THIS COPYRIGHTED CONTENT IS STRICTLY PROHIBITED. We encourage LINKING to this content; view our linking policy here.


Also in the News...

Elderly Woman Severely Injured in Fall Off OR Table

ASC Administrator Stabbed to Death by Estranged Husband

Patient Dies After Admission for Gallbladder Surgery That Wasn't Performed

Orthopod Owes $150,000 for Post-Op Knee Infection

Ophthalmologist Sues His Own ASC for Blocking Plans to Open Competing Center

So-What Study Finds That ASC Owners Perform More Surgery

CMS Updates Emergency Equipment Requirement

© Copyright Herrin Publishing Partners LP 2011. REPRODUCTION OF THIS COPYRIGHTED CONTENT IS STRICTLY PROHIBITED. We encourage LINKING to this content; view our linking policy here.

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