Wichita chiropractor pleads guilty to $1.3M in health care fraud

07/21/2014 1:24 PM

07/21/2014 1:26 PM

After reaching an agreement with federal prosecutors, a Wichita chiropractor pleaded guilty Monday to defrauding more than $1.3 million from health care programs.

Jeffrey D. Fenn, 33, pleaded guilty to one count of health care fraud, two counts of aggravated identity theft and one count of tax evasion, U.S. Attorney Barry Grissom said in a news release.

When Fenn was indicted by a grand jury in October, he also faced 16 counts of money laundering, five additional counts of health care fraud and one count of illegally obtaining controlled drugs.

At the time, he denied all allegations and told The Eagle it was a “billing dispute with the government.”

In his plea agreement, Fenn admitted he conducted a fraud scheme that began in March 2011 through his businesses – Wichita Health and Wellness, Fenn Chiropractic and Wichita Pain Associates.

He submitted false claims to Medicare, Blue Cross and Blue Shield of Kansas, Coventry Health Care of Kansas and the Federal Employees Health Benefits Program, Grissom said.

Fenn hired physicians and other health-care providers to perform procedures that he wasn’t qualified to perform. He gave information to the Kansas Board of Healing Arts that falsely said that medical doctors had ownership in his clinic and used their names to submit fraudulent claims for service, Grissom said.

On the fraudulent income tax filings, $9,400 that he claimed was spent to buy a server was actually used to make a down payment on a Wichita residential lot and $15,000 that was attributed to advertising expenses was used to make a down payment on a ski boat.

Sentencing is set for Oct. 20. Attorneys for both sides have agreed to recommend a sentence of five years and restitution totaling more than $1.8 million.

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