Psychologist pleads guilty to defrauding Blue Cross, Shakopee Mdewakanton Sioux out of $550K

MINNEAPOLIS – A Twin Cities psychologist pleaded guilty earlier this week to defrauding both a health insurance company and the Shakopee Mdewakanton Sioux Community.

The U.S. Attorney's Office says 57-year-old Charles Howard Jorenby, of Chanhassen, stole more than $500,000 over a span of seven years through fraudulent billing of Blue Cross Blue Shield Minnesota – pretending he provided treatment to 29 tribal members at his Prior Lake office. Blue Cross then paid Jorenby from funds provided by the SMSC.

Court documents stated that Jorenby used the names and birth dates of tribal members "without their knowledge or permission."

Jorenby made a plea deal in which he admitted to submitting another fraudulent claim, this time to State Farm Insurance, after his office was damaged by fire. He received a settlement of more than $100,000 in that instance.

He will be sentenced next April.