$3 million chiropractor fraud uncovered in Bryan

The owner of a now-defunct chiropractic clinic in Bryan has pleaded guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, United States Attorney Kenneth Magidson announced.

Marion Young, 42, co-owner of Private Chiropractic Care, admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by recruiting alleged auto accident victims to be represented by a Bryan area law firm.

He also told investigators that he operated the clinic as a front to allow fraudulent chiropractic bills to be created for treatments that were never performed. The claims were used as support for fraudulent settlement demand letters sent to auto insurance companies, federal prosecutors said.

Young received checks and cash from the firm totaling approximately $112,000.

Clients of the bogus clinic were sent to Private Chiropractic to be evaluated by chiropractor and co-defendant Chase Lindsey, 34, according to prosecutors. Lindsey pleaded guilty earlier this year, admitting he entered into an agreement with the office manager of that same law firm.

Lindsey agreed to provide patients' medical evaluations and to recommend treatment in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals and never supervised the treatments allegedly administered by these unqualified individuals, prosecutors said.

Lindsey routinely prescribed the same six treatments but the patients usually received only two -- ice or heat packs, and electric stimulation. Lindsey prescribed the treatments be done three to four times per week for five to six weeks, but the patients usually went once a week for three to four weeks.

Young knew the patients were not receiving most of the treatments prescribed and that they were not going for treatments on many of the days reflected on the Private Chiropractic Care bills, according to prosecutors. He also was aware false Private Chiropractic Care billing was prepared at the law firm and were used as support for the settlement demands.

Prosecutors said that Young took part in the scheme to defraud the insurance companies as an accident client of the law firm. Three separate checks, totaling almost $5,000, were sent and made payable to Young and the law firm to settle an accident claim based on fraudulent chiropractic bills produced at the firm. Young never received the treatments reflected on the bills sent to the insurance companies, prosecutors said.

More than $3 million in false billing claims were submitted to automobile insurance companies, which paid at least $1.2 million in false claims during 2007-2009, according to the U.S. Attorney's Office.

U.S. District Judge Kenneth Hoyt accepted the guilty plea and set sentencing for Sept. 16. Young faces up to 20 years in prison and a possible $250,000 fine. As part of his plea agreement, he also agreed to forfeit the $112,000 that he received and to pay restitution of $1.2 million to the insurance companies victimized by the scheme. Young was allowed to remain free on bond pending his sentencing.

Three remaining defendants charged in relation to this case are scheduled for trial on Sept. 24. The criminal charges are the result of a joint investigation by FBi agents and the National Insurance Crime Bureau.