A Wichita chiropractor surrendered his license Friday amid accusations he defrauded $1.3 million from health care programs, U.S. Attorney Barry Grissom said.
Details of the charges against Jeffrey D. Fenn, 32, of Wichita Health and Wellness, Fenn Chiropractic and Wichita Pain Associates, emerged in a federal indictment unsealed Friday. He faces six counts of health care fraud, two counts of aggravated identity theft, 16 counts of money laundering and one count each of tax evasion and illegally obtaining controlled drugs in connection with a scheme that started in March 2011, according to a news release from Grissom’s office.
Reached by phone Friday evening, Fenn denied all of the allegations and referred future calls to his attorney.
“We have a billing dispute with the government,” Fenn said. “ ... This is from 2011. It’s really, really old.”
The indictment alleges Fenn devised and implemented a plan to submit false claims to Medicare, Blue Cross Blue Shield of Kansas, Coventry Health Care of Kansas and the Federal Employees Health Benefits Program for services that were never performed, were done by uncertified personnel or were medically unnecessary, Grissom said. The document also alleges Fenn hired physicians, nurse practitioners and physical therapists to perform services that he was not qualified to offer, misrepresented his clinics’ ownership to the Kansas Board of Healing Arts and falsely submitted claims using the names of his employees, Grissom said.
Federal prosecutors also allege Fenn overstated his 2011 business deductions by $367,800 and claimed deductions for personal expenses, leading to the tax evasion charge.
If convicted, Fenn could spend up to 10 years in federal prison on the health care fraud and money laundering counts, up to five years for tax evasion and up to four years on the drug charge, Grissom said. The aggravated identify theft counts draw a mandatory sentence of two years in federal prison.
Fines of up to $250,000 per count could also be imposed, Grissom said.