Minneapolis man convicted in 'corrupt chiropractors' scam worth millions

Yahye Herrow acted as a runner in the scam.
Author:
Publish date:

A Minneapolis man is the latest to be convicted in a highly-sophisticated, multi-million dollar health insurance scam involving a number of Twin Cities chiropractic clinics.

Yahye Mohamed Herrow, 46, of Minneapolis, was convicted in federal court on Wednesday for his involvement in a fraud scheme that took advantage of Minnesota's "no-fault car insurance system."

The system is designed to help patients in car accidents to get their bills paid in a timely fashion without having to go to court, but Herrow and two-dozen others treated it like a "piggy bank," the Department of Justice said.

The five-year long scheme generated millions of dollars in fraudulent payouts for chiropractors, runners, patients and personal injury lawyers.

Thus far, 26 people across seven separate metro-area chiropractic clinics have been implicated in the scheme, of whom 24 including Herrow have pleaded guilty or been found guilty.

"This very complex case uncovered a large-scale insurance fraud scheme orchestrated by corrupt chiropractors and their accomplices, which resulted in millions of dollars in losses for insurers and their customers," said Minnesota Commerce Commissioner Jessica Looman.

Today's Top Stories

– Science Museum turning mummified monkey into new business.

– Dan Rather drops into Minneapolis, and his favorite diner.

– Sign up for our daily newsletters.

How the scheme worked

Herrow acted as a "runner" for Twin Cities chiropractor Angela Schulz, who is one of several chiropractors implicated in the scheme, federal authorities say. 

Herrow would find those who had been injured in car accidents and entice them to attend treatments at Schulz's clinics, Meyer Injury Center and the Morrow Accident Rehabilitation Center.

Schulz is accused of paying Herrow and other runners illegal kickbacks in exchange for referring patients to her clinic.

These kickbacks were generally $500 to $2,500 per patient, much of which would go to the patient to entice them to attend treatments they didn't need or wouldn't otherwise have sought.

Once they had attended a predetermined number of appointments – the point at which auto insurance payments covered the cost of the kickbacks – Schulz would then pay the runners.

Patients were then often referred to personal injury lawyers to seek settlements from insurance companies for "pain and suffering," with the attorneys coaching them that they could get even more money if they continued to attend treatment.

$5 million over 5 years

During the trial, Herrow and others involved hid from insurers the fact that runners and patients.

Between 2011 and 2016, Schulz allegedly made more than $5 million from auto insurance companies, and paid more than $1 million out to runners and patients.

Federal court records show that Schulz is still awaiting trial for the allegations against her.

"They treated patients like commodities," said Assistant U.S. Attorney John Kokkinen. "They prescribed treatment plans to make money for the chiropractors, the runners, the patients, and personal injury attorneys, with little regard for whether the patient truly needed or benefitted from treatment." 

Herrow was convicted of 1 count of conspiracy to commit mail fraud, and four counts of mail fraud.

Next Up

St. Paul police

St. Paul police arrest teenage boy in carjacking crackdown

This comes amid a dramatic spike in Twin Cities carjackings.

snow

Snow latest: Twin Cities set for up to 4 inches

A narrow system will travel across Minnesota overnight.

Blake Fredrick / Lake City Basketball

Lake City boys basketball player signs contract, honored on senior night

Frederick had a special call-up to the Tigers' varsity basketball team.

ambulance

Man dies after being shot outside home near Grove City

He was found outside a home in Acton Township.

Screen Shot 2021-02-27 at 9.39.00 AM

Teen wounded in 'accidental shooting' in Moorhead

The 18-year-old was shot in the abdomen.

Kirill Kaprizov / Minnesota Wild

Watch: Another absurd night for Kaprizov as his legend grows

Kaprizov scored a crazy wrap-around goal in the Wild's victory over the Kings.

uber-eats-4709288_1920

DoorDash, Uber Eats bump service fees for Twin Cities customers

After Minneapolis and St. Paul limited what companies can charge restaurants, DoorDash and Uber are charging customers about a dollar more

hockey rink ice arena

Hill-Murray girls' hockey shut down after 3 players with COVID symptoms kept playing

The players showed 'complete disregard' for the school's COVID

Screen Shot 2019-02-12 at 6.18.55 AM

Narrow band of intense snow to bring up to 7 inches to Minnesota

A winter storm watch has been issued where more than 6 inches could pile up.

Related

Personal injury attorney pleads guilty in corrupt chiropractor scam

The 37-year-old was involved in a scheme that defrauded insurance companies.

Charges: Fridley man's telemarketing scam netted $10M

He ran a call center out of Chaska that duped people into signing up for magazine subscriptions.

'Jury duty' scam calls apparently a problem in Hennepin Co. right now

Local authorities are warning people to be wary of the scams.

Twin Cities lens firm accused of using luxury skiing, hunting trips as kickbacks to doctors

Precision Lens denies the allegations filed by the federal government.

Don't be fooled by this Xcel Energy phone scam

It's tricking people into giving out their card details.

Women scammed 89 year old out of $8,000 at Cub Foods

Police want to hear from anyone with information.

Minneapolis lawyer made millions from sham porn copyright scheme

He threatened people who downloaded porn movies with lawsuits.