Lakeville clinic sued for alleged fraud

Published: 2009-12-02 14:41:18
Author: Star Tribune | November 24, 2009

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.

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