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Twin Cities psychologist admits insurance fraud against Shakopee Mdewakanton account – Twin Cities

A Twin Cities psychologist has pleaded guilty in federal court to fraudulently billing an American Indian tribe’s insurance account for more than half a million dollars for services he admitted he never performed.

Charles Jorenby (57) of Chanhassen pleaded guilty in a federal courtroom in St. Paul pleaded guilty to one count of health care fraud, the U.S. Attorney’s Office for the District of Minnesota announced Thursday.

Prosecutors say between January 2013 and February 2020, Jorenby carried out a scheme to defraud the Shakopee Mdewakanton Sioux community and their insurance company, Blue Cross Blue Shield, by submitting false claims.

Jorenby practiced at Life Dynamics in Prior Lake and submitted fraudulent bills to Blue Cross for at least 29 tribal members for services he never provided. As a result, prosecutors said the tribe, which funds Blue Cross accounts for tribal members, suffered a loss of at least $550,000.

The tribesmen for whom Jorenby claimed to have provided services were unaware their names and dates of birth were used as part of the scheme.

As part of Jorenby’s guilty plea, he also admitted to a second case of insurance fraud, this time involving State Farm. Jorenby admitted that in 2017, after a fire at his office, he knowingly overestimated a loss of income due to the fire, which included money related to the scheme to defraud the Shakopee Mdewakanton.

State Farm paid out nearly $105,000 to Jorenby in the fire settlement, which prosecutors say represents a product of his fraudulent billing practices.

An investigation by the U.S. Department of Homeland Security and Minnesota’s Trade Fraud Bureau led to an Oct. 3 indictment by a federal grand jury. A sentencing hearing is scheduled for April 27.

Jorenby faces a maximum sentence of up to 20 years in federal prison, and could be ordered to pay any restitution and fines to compensate for losses suffered by the Shakopee Mdewakanton, Blue Cross and State Farm.

Jorenby is no longer listed on the Minnesota Board of Medical Practice’s credential search.

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