Medical Imaging Company Sued for Insurance Fraud

ParkmanLawFirm
October 31, 2013

An Edina based mobile medical imagine company and 46 chiropractors have been accused in a federal lawsuit of being involved in a kickback scheme that alleges fraudulent insurance claims. The civil suit alleges Mobile Diagnostic Imaging Inc. and its owner, Michael Appleman, of working with chiropractors to game the state’s no-fault auto insurance law.

The allegedly insurance fraud scheme involves a trailer that Mobile Diagnostics takes to chiropractors’ offices and parks nearby. Technologists use equipment in the trailer to provide MRI scans to patients, including car accident victims. Mobile Diagnostics has a rental agreement with each chiropractor, reimbursing the various clinics for the lease of office items including: internet access, phones, and other services.

The lawsuit argues that Mobile Diagnostics operates out of a self-sufficient trailer and that it is often parked in lots and other areas not owned by the chiropractors it is serving.

The insurance industry claims this alleged scam is part of broader insurance fraud in Minnesota, which it says is using an outdated no-fault auto accident law. Faked or staged accidents, and the resulting claims, use provisions from the state’s no-fault law, which requires insurance companies to pay up to $20,000 for medical expenses regardless of who was deemed at fault in the accident.

According to a report released in December, the number of questionable claims from “organized groups” in Minnesota increased from 16 in 2008, to 53 in 2011. Minnesota’s total of 198 unquestionable claims in that four year span was relatively small compared with leading states, such as Florida, which had 2,679.

If you find yourself facing federal fraud charges, it is important to find an experienced insurance fraud attorney to represent you. The attorneys of Parkman & White, LLC have a history of success in the court room and are ready to represent clients nationwide.