The charges involve several chiropractors who allegedly engaged in schemes with other parties to defraud automobile insurance companies. The accused chiropractors would allegedly submit claims for services that were either not medically necessary or were never rendered. The scheme involved “runners” who received $1,000 per automobile accident patient they brought in. In order to keep patients coming back for unnecessary treatments, these runners allegedly paid patients illegal kickbacks.
The scheme was allegedly designed to take advantage of the personal injury protection provision of the Minnesota No-Fault Automobile Insurance Act. Under said provision, injured parties are provided a minimum of $40,000 for expenses resulting from injuries sustained in an automobile accident, $20,000 of which can be put toward medical expenses. The accused chiropractors allegedly billed the insurance policies for more than $20 million dollars.
“The charges unsealed today represent a serious effort to expose crooked billing abuses that harm consumers,” said United States Attorney Andrew Luger. “The Commerce Fraud Bureau and FBI continue to work closely with my office to ensure that our efforts to stop fraud and abuse are aligned with the interests of all Minnesotans.”
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