Update to FBI raid of Twin Cities chiropractors

EDINA, Minn. (KMSP) - Dr. Adam Burke is young, good-looking and the star of a catchy YouTube commercial for his Burke Chiropractic Center based in Edina, Minn. Now, he’s apparently in the crosshairs of what appears to be a major insurance fraud investigation based in the Twin Cities.

The FBI and the Minnesota Department of Commerce Fraud Bureau raided upwards of 10 clinics on Tuesday in a near-simultaneous sweep. Also assisting were investigators with the National Insurance Crime Bureau.

“Usually, when we’re involved on a case, it is multi-jurisdictional involving multiple companies, large scope,” a spokesman for the bureau told Fox 9. “And some of these organized rings, if they are committing fraud, they are not doing it on the cheap. Hundreds of thousands of dollars to the millions range.”

It’s still not clear the exact type of fraud involved in this investigation. Experts have suggested it could be anything from staged car accidents to false claims and bogus treatments from chiropractors and pain management specialists. A clinic along historic St. Anthony Main near downtown Minneapolis, owned by Dr. Angela Schulz, appeared to remain closed on Wednesday, 24 hours after it was raided. Attempts to reach Schulz at her west metro home were also unsuccessful.

Dr. Adam Burke provided the following statement to Fox 9:

"The Burke Chiropractic Center is cooperating with the ongoing investigation and will continue to do everything we can to assist in this process. I have worked hard to build a respected practice over the past nine years and believe the process underway will show that myself and my office have operated in an appropriate manner. We take the work and trust of serving our clients very seriously and are continuing to focus on providing outstanding care and service."

We received no comment at the Healthcare Chiropractic Clinic in south Minneapolis, where the doctor behind the practice is already being sued in a civil action by State Farm. The insurance giant is alleging the clinic fraudulently diagnosed health conditions and provided unnecessary care and treatment to insured patients. State Farm is looking for more than $1 million in penalties.

The Insurance Crime Bureau said it will likely take some time – months, or even years – to unravel the full scope of Tuesday’s raids.

The federal search warrants connected to these raids remain under seal. Various attorneys representing the chiropractors declined comment, as did the U.S. Attorney’s Office, who would likely end up prosecuting any insurance fraud case.