Minnesota Chiropractors Accused In $20M Insurance Fraud Schemes

MINNEAPOLIS (WCCO) -- Six chiropractors and 15 others have been arrested and accused of insurance fraud. The U.S. Attorney charged four of those chiropractors and 15 recruiters Wednesday.

He says they took advantage of Minnesota's no-fault insurance laws to collect $20 million in fraudulent claims over a number of years. Federal investigators say each of them were using recruiters, or runners, to get patients to file fake or exaggerated accident injury claims.

Adam Burke of Edina is one of the chiropractors charged. He is accused of using three runners to recruit patients so they could receive medically unnecessary treatments. In return, the runners received kickbacks of about $1,000 for each patient they recruited. Investigators say patients got a cut, too.

U.S Attorney Andy Luger said the fraud was captured on tape by undercover investigators and extends beyond those charged Wednesday.

"Our investigation does not end today," he said. "This is only the beginning, and you can expect more charges in the future."

Prosecutors say the six chiropractors came up with identical schemes independent of each other. Under Minnesota's no-fault insurance laws, insurers will pay $20,000 of medical bills regardless of who is to blame for the accident.

The result of the fraud, according to the FBI and the State Commerce Department, is higher insurance premiums for everyone else.

"People who commit insurance fraud are stealing money from every one of us," FBI Special Agent In Charge Richard Thornton said.

Mark Kulda of the Minnesota Insurance Federation says the charges are a welcome crackdown on abuses that he believes are widespread throughout the state.

"It's an encouraging sign that we see the criminal prosecutors going after these guys," he said. "Unfortunately it's happening way too often, and we are paying the price for that."

All six of he chiropractors, as well as the runners, were expected to be released from custody while the cases against them move forward. Peter Wold, the attorney for Adam Burke, says his client is innocent and that he provided only necessary chiropractic services.

The insurance industry and the commerce department have been working with the legislature to try and implement reforms that would prevent this kind of abuse, and they're hoping to try and do that again this year.