Prior Lake Psychologist Billed For Fake Treatments: Feds

PRIOR LAKE, MN — A Prior Lake psychologist was sentenced to two years in prison and must pay restitution after fraudulently billing counseling services that never actually happened, U.S. Attorney Andrew M. Luger announced Thursday.

Charles Howard Jorenby, 57, of Chanhassen pleaded guilty to one count of healthcare fraud. He was sentenced on Sept. 22 by U.S. District Judge Susan Richard Nelson.

"When criminals commit health care fraud it can negatively affect the health care system in the form of increased fees and lower wages," said Federal Agent Jamie Holt in a statement.

"These crimes are further exacerbated when they are committed by individuals, like Jorenby, who hold positions of trust throughout a community, particularly for those who relied upon him for their, or their family members’ mental well-being."

Jorenby was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake, according to investigators.

From "at least" January 2013 through February 2020, Jorenby orchestrated a scheme to defraud the Shakopee Mdewakanton Sioux Community, authorities said.

The Shakopee Mdewakanton Sioux Community funds its tribal members’ health care costs.

Jorenby began submitting fraudulent bills for counseling services he claimed to have provided to dozens of SMSC members without any notice to the individuals, according to investigators.

Jorenby never provided counseling services to those individuals and he used their names and dates of birth without their knowledge or permission, authorities said.

Jorenby defrauded the Shakopee Mdewakanton Sioux Community out of at least at least $819,000, according to investigators.

In 2017, Jorenby also submitted a fraudulent insurance claim to State Farm Insurance after a fire at his business office, authorities said. Jorenby gave State Farm false information by inflating his income to include earnings associated with his fraudulent billings to Shakopee Mdewakanton Sioux Community, according to investigators.

As part of his sentence, Jorenby must pay the Shakopee Mdewakanton Sioux Community$819,020.83 and State Farm Insurance $104,930 as restitution.