Progressive Casualty Insurance has filed a $1 million lawsuit against a Minnesota chiropractor, an attorney and others for a scheme to fraudulently bill the insurer for phony auto accident injury treatments.

The Mayfield, Ohio-based insurer filed suit in U.S. District Court for the District of Minnesota, against Alivio Chiropractic Clinic Inc., located in Robbinsdale, Minn.

The suit alleges that the clinic owner, chiropractor Joshua Anderson, St. Paul attorney Mark Karney, massage therapist Andrea Bongart and office manager Alexis Aguilar were guilty of charging for medical services never performed and administering and billing for unnecessary and excessive treatments.

The suit, which alleges violations of federal racketeering laws, said the defendants allegedly targeted Hispanic individuals in the U.S. illegally, thereby ensuring that the fraud and abuse would go unreported for fear of deportation.

According to the complaint, in 2001 the defendants used "runners" to solicit accident patients.

When individuals were brought to the clinic, it was alleged, the defendants would bill for services not rendered or bill for treatments prescribed according to a standardized plan that was not based on the needs of the patients but designed to maximize billings.

The suit also charges the defendants assembled and submitted false documents in support of their billings to Progressive.

According to the lawsuit, the defendants filed 55 false claims and billed Progressive more than $307,000. Progressive is asking for compensation worth three times the amount in damage, plus costs and attorney's fees and restitution. The total could reach in excess of $1 million.

The lawsuit is the most recent in a series of medical fraud cases in Minnesota, Progressive said. In both 2002 and 2004, groups of national auto insurers filed suits against chiropractors and other medical clinics alleging medical billing fraud in the millions.

Special Reports /

Progressive Sues Minn. Dr. & Accomplices For $1M

Related Stories

Recommended For You