Chanhassen Psychologist Pleads Guilty to Health Care Fraud

U.S. Attorney's Office

District of Minnesota

FOR IMMEDIATE RELEASE

Thursday, December 1, 2022

Chanhassen Psychologist Pleads Guilty to Health Care Fraud

ST. PAUL, Minn. -- A Chanhassen psychologist has pleaded guilty to fraudulently billing for counseling services never actually rendered, announced United States Attorney Andrew M. Luger.

According to court documents, Charles Howard Jorenby, 57, was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake. From January 2013 through February 2020, Jorenby orchestrated a scheme to defraud Blue Cross Blue Shield Minnesota (BCBS) and the Shakopee Mdewakanton Sioux Community (SMSC), which is responsible for funding the account that BCBS draws from to pay health care costs for tribal members. Jorenby submitted fraudulent bills to BCBS for counseling services he claimed to have provided to at least 29 SMSC members. In reality, Jorenby never provided counseling services to those individuals, and he used their names and dates of birth without their knowledge or permission. As a result of his false billing practices, SMSC suffered a loss of at least $555,000.

As part of his guilty plea, Jorenby also admitted that in 2017, he submitted an additional fraudulent insurance claim to State Farm Insurance following a fire at his business office. In that claim, Jorenby knowingly provided false information regarding lost income, inflating his claimed income to include earnings associated with his fraudulent BCBS billings. Jorenby received a settlement of $104,930, all or part of which is a product of his misrepresentation.

Jorenby pleaded guilty on November 29, 2022, before Senior Judge Susan Richard Nelson to one count of health care fraud. A sentencing hearing has been scheduled for April 27, 2023.

This case was the result of an investigation conducted by Homeland Security Investigations and the Minnesota Commerce Fraud Bureau.

Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.

Updated December 1, 2022