WASHINGTON D.C. - Acting on information from two Republican state legislators in Colorado, Sen. Wayne Allard (R-Colo.) has asked for an investigation into allegations of a kickback scheme by Michigan-based Stryker Corp.

Stryker, a medical products company founded by the grandfather of Fort Collins billionaire philanthropist Pat Stryker, is alleged to have paid kickbacks to clinics in South Dakota, in violation of state laws.

The two Colorado legislators, Rep. Cory Gardner (R-Yuma) and Rep. Josh Perry (R-Grand Junction), on Tuesday sent a letter to Allard expressing concern over Stryker Corp.'s alleged violations and suggesting the company's practices could affect Colorado.

Allard on Thursday called on U.S. Health and Human Services Secretary Mike Leavitt to investigate the company, one of the world's largest producers of artificial knees, hips and other joint replacements and of a broad range of surgical tools.

Allard's letter to Leavitt cited concerns "that similar practices may be occurring in Colorado" and said the allegations reflect "a pattern of behavior by the Stryker Corporation which could increase health care costs throughout the region."

Gardner and Perry cited a news article from the Sioux Falls, S.D., Associated Press bureau detailing a $345,000 payment that the company made to settle a federal lawsuit filed in 2004. The suit came after an orthopedic surgeon at a South Dakota clinic claimed Stryker had paid doctors to use the company's products, according to U.S. District Court documents. The suit further alleged the practices violated South Dakota's Medicare Anti-Kickback statute.

Allard's letter to Leavitt said Stryker Corp. had also paid a fine of $325,000, in addition to the settlement costs, for paying a clinic to use its products. The clinic then billed the cost of the products to Medicare and Medicaid.

Stryker Corp. has a long record of support for Democratic political candidates, and Pat Stryker and her two siblings are also major contributors to Democratic candidates. Stryker and her sister, Rhonda Stryker, and brother Jon Stryker are major shareholders in Stryker Corp., each with more than $1.5 billion in holdings.