ST. PAUL, MN – Charles Howard Jorenby, a 57-year-old psychologist from Chanhassen, has been sentenced to 24 months in prison and three years of supervised release for fraudulently billing counseling services he never provided. U.S. Attorney Andrew M. Luger announced the sentencing.
Court documents show that Jorenby, owner of Life Dynamics, Inc. in Prior Lake, orchestrated a scheme from at least January 2013 to February 2020 to defraud the Shakopee Mdewakanton Sioux Community (SMSC). SMSC funds its own tribal members’ health care costs and contracted with Blue Cross Blue Shield Minnesota (BCBS) for health care administration. Jorenby exploited a loophole in the SMSC-BCBS system, submitting false bills for counseling services for dozens of SMSC members. None of the billed individuals were aware of or consented to Jorenby’s actions, resulting in a loss of at least $819,020.83 for SMSC.
In 2017, Jorenby also submitted a fraudulent insurance claim to State Farm Insurance following a fire at his business. He inflated his claimed income with earnings from his fraudulent billing scheme, ultimately receiving a $104,930 settlement. The court ordered Jorenby to pay $819,020.83 to SMSC and $104,930 to State Farm Insurance as restitution.
Jorenby pleaded guilty to one count of health care fraud on November 29, 2022, and was sentenced on September 22, 2023, by U.S. District Judge Susan Richard Nelson.