46 Minnesota Chiropractors, MRI firm Accused of Fraud for Ordering Unnecessary Tests EDINA. MN-A law suit says 46 chiropractors got kickbacks from an Ediiia MRI firm for recommending scans to accident victims that were unnecessary. A Twin Cities diagnostic imaging company and 46 chiropractors were accused in a federal law suit Monday of defrauding the state's no-fault car insurance system with unnecessary medical procedures and kickbacks to practitioners who ordered them. The $1.9 million action filed by Illinois Fanners Insurance Co. and some of its subsidiaries against Mobile Diagnostic Imaging Inc.. its owner and tlic cliiropractors. is tlic largest no-fault lawsuit since tlic law was put in place in 1974. according to tlic Insurance Federation of Minnesota. In Monday's lawsuit. Fanners alleges that Edina-bascd Mobile Diagnostic Imaging Inc. (MDI) and its owner. Micliael Appleman. paid 46 chiropractors kickbacks forordering MRIs. which Fanners claims were not always medically necessary. Contacted Monday. Applcman refused to comment on the law suit. The lawsuit claims that tlie kickbacks were disguised as fees for leasing phones, fax machines, copiers. Internet access and other sen ices and equipment, even though "MDI conducts its scans in a self-sufficient MRI trailer." according to tlic suit. From January through November 2011. MDI and Applcman allegedly paid $221.800 in kickbacks to the chiropractors, in payments between $700 and $15.400. A "Chiro Roster" for 2011. obtained by the insurance companies, lists chiropractors who the insurance companies say were receiving kickbacks. Tliere are more than 90 names on tlic list, but the insurance companies have redacted those not named in the suit. Tlic chiropractors would often order medically unnecessary scans, the law suit claims. For example. Dr. Assiat Boke. in Golden Valley, referred a patient to Mobile Diagnostic Imaging "even though the patient lad essentially been discliargcd from any further chiropractic treatment." tlic law suit said. Four of the 46 chiropractors named in the law suit, including Boke. have previously been the subjects of corrective action from the Minnesota Board of Chiropractic Examiners related to payments made to them from a "mobile diagnostic imaging company." according to the agreements. Applcman is not a licensed medical professional. According to state records, in 2002 the Minnesota Board of Psychology revoked Applcman's license for altering client records, billing for sen ices not provided, inadequate documentation to substantiate billings and improperly releasing confidential information. Source: StarTribum Former Bryan Chiropractic Clinic Owner Convicted in $3 Million Auto Insurance Fraud Conspiracy HOUSTON. TX—Tlic fonncrowncrof Private Chiropractic Care in Bryan lias entered a pica of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, announced United States Attorney Kenneth Magidsoa Brittany Jessie. 24. admitted six: participated in a thrcc-ycar conspiracy to defraud numerous auto insurance companies by creating fraudulent chiropractic bills forchiropractic treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies. Jessie sometimes cashed checks and took the cash to Lindscy for payment. Lindscy routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained, and unqualified individuals, including Jessie. Lindscy always prescribed the same six treatments, but the patients usually received only two: ice/heat packs and electric stimulation. Lindscy prescribed the treatments be done three to four times per week for five to six weeks, but the patients usually went once a week for three to four weeks. and many did not even go back for treatment afteronc or two visits. Jessie was instructed on which treatments to mark down in order for the billing to be approved and to alternate treatments on tlie billing so it did not look suspicious. At one point. Jessie provided a set of treatment guidelines to an employee at Private Chiropractic Care to follow which were needed for the billing of patients. Jessie instructed tliat employee to mark down patient treatments, even if the treatments were not done, because it was necessary for billing. Jessie also fraudulently marked down treatments and the patient's pain levels on treatment forms. She also prepared the false chiropractic billing statements at Sanjoh & Associates. Although most of the treatments billed were never performed. Jessie created false and fraudulent chiropractic bills under Lindscy "s name for each of the four clinics in the scheme—Texas Avenue Chiropractic Clinic. H & E Chiropractic. Private Chiropractic Care, and Lindscy Chiropractic Care. Despite changing the name and location of the chiropractic clinic four times, tlie fraud scheme remained the same. Jessie acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $940.0(X) in false claims during 2007-2009. during which time Jessie was paid at least $22,637. U.S. District Judge Kenneth Hoyt. who accepted the guilty plea lias set sentencing for December 2. 2013. at which time she faces a maximum penalty of 20 years* imprisonment and a possible $250.000 fine. As part of her plea agreement. Jessie his also agreed to pay restitution of approximately $941 .(XX) to tlic insurance companies victimized by the scheme. She was permitted to remain on bond pending her sentencing. The criminal cliargcs arc tlic result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. This case is being prosecuted by Assistant United States Attorney Al Balboni and Special Assistant United Suites Attorney Adrienne Frazior. Source: FBI
