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Federal jury finds Minneapolis man guilty for his role in multi-million dollar insurance fraud conspiracy

5/9/2018 4:57:09 PM

For Immediate Release

MINNEAPOLIS – A federal jury has returned guilty verdicts against a Minneapolis man on conspiracy and mail fraud changes for his role in a multi-million dollar insurance fraud scheme involving chiropractors and their accomplices.

Yahye Mohamed Herrow, age 46, was convicted of one count of conspiracy to commit mail fraud and four counts of mail fraud following a three-day trial before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis.

The case was part of a larger investigation that ultimately resulted in charges against 26 individuals across seven separate Twin Cities area chiropractic practices. Including this latest conviction, 24 of these individuals have either pleaded guilty or been convicted in trials.

The investigation was conducted by the Minnesota Commerce Fraud Bureau and the Federal Bureau of Investigation. Additional assistance was provided by the Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol and Homeland Security Investigations.

“This very complex case uncovered a large-scale insurance fraud scheme orchestrated by corrupt chiropractors and their accomplices, which resulted in millions of dollars in losses for insurers and their customers,” said Minnesota Commerce Commissioner Jessica Looman. “The many convictions and guilty pleas in this case are a testament to a strong, effective partnership that involved the Minnesota Commerce Fraud Bureau, federal authorities and local law enforcement to stop fraud in Minnesota.” 

“Minnesota’s no-fault car insurance system is designed to get patients the treatment they need, get their bills paid timely, and avoid the need for court battles over who caused the accident. Schulz, Herrow and the others involved in this scheme treated the no-fault system like a piggy bank. They treated patients like commodities. They prescribed treatment plans to make money for the chiropractors, the runners, the patients, and personal injury attorneys, with little regard for whether the patient truly needed or benefitted from treatment.” said Assistant U.S. Attorney John Kokkinen.

“This conviction today in this sprawling multi-million dollar fraud scheme sends a strong message to those who join other criminals in defrauding automobile insurance companies,” said Special Agent in Charge of the FBI Minneapolis Division Jill Sanborn. “The FBI will vigorously investigate crimes like this, because these scams victimize law abiding Minnesotans who often face higher insurance premiums to make up for money wasted on fraudulent payments. The FBI is grateful for the strong law enforcement partnerships, such as the Minnesota Commerce Fraud Bureau, which helped bring about the verdict we see today.”

As proven at trial, from at least 2011 through February 2016, Herrow, along with multiple co-conspirators, including chiropractor Angela April Schulz, participated in a scheme to defraud automobile insurance companies by paying kickbacks to entice patients who had been in car accidents to attend chiropractic treatments.

Herrow’s role was as a “runner,” someone who solicited individuals who had been in car accidents to attend treatments at Schulz’s clinics, Meyer Injury Center and Morrow Accident Rehabilitation Center.

As proven at trial, Schulz paid illegal kickbacks to Herrow and other runners in exchange for referring patients to her clinics. Much of that payment was given to the patients to entice them to attend treatments that they did not need or would not have sought absent the payment.

As proven at trial, Schulz, Herrow and other co-conspirators hid the fact that runners and patients were being paid by lying to the insurance companies about the use of runners, making the payments in cash and reminding all involved to keep the payments a secret.

Ultimately, Schulz’s clinics billed the automobile insurance companies for services provided to hundreds of patients who had been paid to attend treatments.

Over a five-year period, Schulz paid more than $1 million to runners and patients, while receiving more than $5 million from the automobile insurance companies.

Commerce is here to help

Media Contact
Ross Corson
Director of Communications
Minnesota Department of Commerce
p: 651-539-1463 | c: 651-368-5050 |



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