Wichita Chiropractor Pleads Guilty in Health Care Fraud Case
|U.S. Attorney’s Office July 21, 2014|
TOPEKA, KS—A Wichita chiropractor pleaded guilty Monday to defrauding health care insurers of more than $1.3 million, U.S. Attorney Barry Grissom.
Jeffrey D. Fenn, 33, Wichita, Kan., pleaded guilty to one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion. In his plea, he admitted that from March 2011 to October 2013 he executed a health care fraud scheme through his businesses, including Wichita Health and Wellness, Fenn Chiropractic, P.A. and Wichita Pain Associates, P.A. Fenn submitted false claims to Medicare, Blue Cross/Blue Shield of Kansas and Coventry Health Care of Kansas, Inc., and the Federal Employees Health Benefits Program.
Chiropractors have a limited scope of practice. They are not allowed to perform injections, dispense drugs or supervise ARNPs and physicians. Fenn developed what he called an “integrated practice,” hiring physicians, advanced registered nurse practitioners and physical therapists and ostensibly having them perform procedures he was not qualified to perform. He misrepresented to the Kansas Board of Healing Arts that medical doctors had an ownership in his clinic. He used the names of physicians he employed to submit false claims for services.
Fenn fraudulently billed for nerve conduction tests, nerve block injections, subcutaneous infiltrate proceedings, fine needle aspirations and ultrasound procedures.
He also made fraudulent claims for business and personal income taxes. For example, he claimed a $9,400 business expense for purchasing a server. In fact, he spent the money to make a down payment on a residential lot in Wichita. He claimed a $15,100 expense for advertising. In fact he used the money to make a down payment on a ski boat.
Sentencing is set for Oct. 20. Both parties have agreed to recommend a sentence of five years in federal prison and restitution totaling more than $1.8 million.
Grissom commended Health and Human Services, Office of Inspector General, Office of Investigations, the FBI, Defense Criminal Investigative Service, the Food and Drug Administration, the Internal Revenue Service and Assistant U.S. Attorney Tanya Treadway for their work on the case.