Chanhassen psychologist pleads guilty to $550K billing fraud
A Chanhassen psychologist has pleaded guilty to fraud after he billed an insurance company for counseling services he never provided.
On Nov. 29, Charles Howard Jorenby, 57, pleaded guilty to one count of healthcare fraud in U.S. District Court. Jorenby was a licensed psychologist and owner of Life Dynamics Inc. in Prior Lake.
According to court documents, between January 2013 and February 2020, Jorenby defrauded Blue Cross Blue Shield Minnesota and Shakopee Mdewakanton Sioux Community, which funds the account BCBS draws from to pay for tribal members’ healthcare costs.
During that period, Jorenby would submit bills to BCBS for services he falsely claimed to have provided to at least 29 tribal members. He also used the names and information of those individuals without permission.
As a result of the fraudulent billings, SMSC lost at least $550,000.
And as part of his guilty plea, Jorenby also admitted to making a fraudulent insurance claim to State Farm Insurance regarding a fire at his business in 2017. Jorenby admitted he had inflated his income in the claim to include the fraudulent billings.
The $104,930 Jorenby received in the settlement was at least partially due to the misrepresented income, according to court documents.
A sentencing has been set for Jorenby for April 27 of next year.
