Chanhassen man sentenced to 2 years in prison for fraudulent claims totaling $900K

A Chanhassen psychologist has been sentenced in federal court for health care fraud.

A release from the U.S. Department of Justice (DOJ) said 57-year-old Charles Howard Jorenby was sentenced on Sept. 22 to two years (24 months) in prison followed by three years of supervised release for fraudulently billing for counseling services that never happened.

From 2013 to 2020, Jorenby, under the guise of Life Dynamics, Inc., defrauded the Shakopee Mdewakanton Sioux Community (SMSC) by billing their contractual partner, Blue Cross Blue Shield of Minnesota (BCBS), over $800,000 in fraudulent counseling services. Jorenby did this after he realized the billed services between SMSC and BCBS were fully covered and patients didn’t receive any explanation of benefits, the release added.

In addition to using individuals’ full names and dates of birth to fraudulently submit bills, Jorenby submitted a claim to State Farm Insurance using an income figure that included the fraudulent billing after a fire at his business, court records show. As a result of this, he received a $104,930 settlement from his insurance.

The release stated that Jorenby was ordered to pay SMSC $819,020.83 and State Farm Insurance $104,930 as restitution.

“When criminals commit health care fraud it can negatively affect the health care system in the form of increased fees and lower wages,” said Special Agent in Charge of Homeland Secretary Investigations (HSI) St. Paul Jamie Holt. “These crimes are further exacerbated when they are committed by individuals, like Jorenby, who hold positions of trust throughout a community, particularly for those who relied upon him for their, or their family members’ mental well-being.”

Jorenby pleaded guilty to one count of health care fraud on Nov. 29, 2022.