A Missouri surgeon and a Kansas medical device distributor have admitted their roles in a multi-year kickback conspiracy that corrupted spine surgery decisions for profit. Jason Montone, DO, 44, of Lawson, Mo., has agreed to plead guilty to one count of conspiracy to violate the Anti-Kickback Statute and one count of obstruction of justice, sealing a deal that exposes the rot beneath a veneer of medical legitimacy.
John Balzer, 42, of Lenexa, Kan., is similarly implicated, pleading guilty to the same kickback conspiracy charge and an additional count of witness tampering. According to plea documents, Balzer received $1,264,501 in commissions tied to Montone’s use of specific spinal implants — kickbacks disguised as legitimate sales compensation. Montone, in turn, collected $379,000 in sham consulting fees, paid at rates of $500 to $750 per hour for work he largely did not perform.
The scheme ran from late 2012 to October 2015, during which the unnamed medical device company, along with its CEO and CFO, used a so-called consulting program to funnel cash to Montone. The company claimed the program gathered surgeon feedback, but in reality, payments were tied directly to Montone’s implant usage. Sales volume, not medical input, dictated how much Montone was paid — a clear violation of federal law.
Montone falsely reported spending hundreds of hours evaluating products, discussing industry trends, and training residents. The truth? He spent only a fraction of those hours on actual consulting. Meanwhile, Balzer helped conceal the arrangement and later pressured witnesses to downplay Montone’s role, actions that led to his witness tampering charge. These efforts to obstruct the federal investigation only deepened the criminal toll.
“Kickbacks paid to influence physicians are illegal and incompatible with a properly functioning health care system,” said U.S. Attorney Andrew E. Lelling. “We will take all necessary steps to ensure that patients receive, and the government pays for, health care that is based solely on sound medical judgment, not compromised by kickbacks.”
“Surgeons are entrusted to make decisions for the best interests of their patients, not because of the corrupting influence of kickbacks,” added Phillip M. Coyne, Special Agent in Charge for HHS-OIG. “This case sends a clear message: sham consulting arrangements that undermine patient care for profit will be exposed and prosecuted. Plea hearings are pending; both men face prison, forfeiture, and supervised release.”
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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