Not long ago it was "common knowledge in certain circles" around the Twin Cities that car crash victims could pocket some extra cash if they went to the right person, a federal prosecutor told jurors Thursday in U.S. District Court in Minneapolis.
As the first of multiple fraud trials involving metro chiropractors accused of bilking insurance companies out of millions of dollars got underway, jurors were quickly asked to consider whether they would be reviewing a case of doctors putting profit over ethics or merely the latest example of an intractable billing dispute between insurers and health care providers.
Assistant U.S. Attorney John Kokkinen told jurors that Minneapolis chiropractor Preston Forthun and a partner at his Comprehensive Rehabilitation clinic raked in more than $3 million between 2010 to 2015 from insurance companies for unnecessary treatments to patients who were frequently paid to attend up to 40 appointments each.
"The payments became the reason for getting treatment as opposed to needing it," Kokkinen said. "This was a fraud scheme."
Forthun is on trial alongside Abdisalan Hussein and Carlos Luna, two men he allegedly used as "runners" to recruit and pay car crash victims. All three are charged with conspiracy to commit mail and wire fraud, plus additional individual federal fraud charges in an alleged plot to take advantage of Minnesota's no-fault insurance law.
The law mandates minimum coverage of $20,000 for medical expense benefits and other financial losses regardless of fault in a crash. More than two dozen people have been charged and additional trials are scheduled for later this year, all before U.S. District Judge Michael Davis.
Kokkinen said Thursday that Forthun and fellow chiropractor Darryl Humenny, who has since pleaded guilty to conspiracy and will testify, used "predetermined" rehabilitation plans that were "designed to make as much as possible from insurance companies."
The doctors paid "runners" about $1,000 to $1,500 per patient recruited but withheld payments until patients attended about six to 12 appointments, Kokkinen said. All but about $100 of the money went to the patients themselves and such payments represented the clinic's "single biggest expense."