Lakeville clinic sued for alleged fraud

Star Tribune

Last update: November 24, 2009 - 7:31 PM

The state is suing a Lakeville chiropractic clinic and its owner alleging that they fraudulently enrolled patients in health-care credit card accounts.

The suit was filed Tuesday in Dakota County District Court by Attorney General Lori Swanson and the Minnesota Board of Chiropractic Examiners.

According to the suit, Okeson Optimal Chiropractic clinic would usurp the identities of unrelated third parties, list them as CareCredit card co-applicants without their knowledge, and inflate patients' actual income.

"The clinic jeopardized patients' credit histories and obligated patients to repay credit card bills on lines of credit for which they otherwise may not qualify," Swanson said. "The clinic wanted patients to qualify for these credit cards so it could pre-bill the cards and make money."

Calls to the clinic and the home of its owner, chiropractor Erik Okeson, were not answered Tuesday.

The suit alleges that the clinic billed patients' credit card accounts for amounts ranging from $1,200 to $4,300 before all services were delivered. The cards charge no interest if the balance is paid promptly. But if a patient does not pay back the amount charged on a card on time, default interest rates of as much as 29.99 percent apply.

From June 2007 through July 2009, the defendants placed about $632,000 in charges on credit cards, the suit alleges.

In August, Swanson and the board sued Express Health, P.A., and its owner, Lakeville chiropractor Cory Couillard, alleging the same type of fraud.

The CareCredit card marketed by the GE Money Co. is offered by more than 200,000 health providers nationwide.

PAUL WALSH