Ronald Danderfer, seen here when he was head of B.C.'s Vital Statistics Agency, is named in an RCMP search warrant. (CBC)

B.C.'s minister of health calls the alleged behaviour of the subjects of an RCMP investigation "nefarious," and fears the probe could cast a cloud over the B.C. public service.

The allegations of fraud and breach of trust centre on a high-tech diagnostic device invented by Dr. Jonathan Burns of Abbotsford. The Pixelere was designed to scan wounds in patients in their homes, with the data then being sent to doctors electronically for diagnosis.

In information the RCMP presented to a judge to obtain a search warrant, police allege Burns bribed two provincial government bureaucrats to buy the invention.

"The allegations are themselves no question very damaging and concerning," B.C. Health Minister Kevin Falcon told a Victoria news conference Thursday.

"It would appear there were a handful of people that the allegations suggest were involved in some very nefarious behaviour that is totally unacceptable," Falcon said.

"I can tell you there are hundreds of people right now in the ministry of health service that feel a cloud over their heads that's not fair," said Falcon.

In the 99-page search warrant obtained by CBC News, it's alleged Burns became an adviser to assistant deputy minister of health Ron Danderfer in 2006, and that Burns paid for a trip by Danderfer to Paris, provided him a free stay at a condo in Kelowna, and provided a job to Danderfer's wife, in exchange for Danderfer approving government cheques to Burns.

Hired by health authority after sentencing

The RCMP also allege former Fraser Health Authority manager James Roy Taylor allowed Burns to fraudulently submit more than $500,000 in invoices while the Pixelere was being tested, in return for a $70,000-a-year job for Taylor's wife, and free use of the Kelowna condo.

Taylor was hired by the Fraser Health Authority in the same month that he had been sentenced to two years night-time house arrest for fraudulently pocketing more than $40,000 while serving as the president of the White Rock Sea Festival.

Burns, Danderfer and Taylor all declined CBC requests for interviews Thursday.

The B.C. New Democrats, who raised the allegations in the legislature Wednesday, said there has not been enough oversight of public money.

"What we have is a tale of untendered contracts, of lack of administrative control, and this is just what we know," said MLA Adrian Dix.

A decision is expected next month on whether or not charges will be laid in connection to the RCMP investigation.