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Suit accuses 46 chiropractors in kickback scheme

MINNEAPOLIS (AP) -- A federal lawsuit accuses a diagnostic imaging company and 46 chiropractors of engaging in an elaborate kickback scheme aimed at defrauding Minnesota's no-fault insurance system. Illinois Farmers Insurance and its subsidiaries filed the $1.9 million lawsuit against Mobile Diagnostic Imaging Inc., its owner and the chiropractors. The Insurance Federation of Minnesota says it's the largest no-fault lawsuit since the state's law was put in place in 1974. The law requires insurance companies to pay a minimum $20,000 for medical expenses regardless of who is at fault in an auto accident. The insurance companies allege Edina-based Mobile Diagnostic Imaging and its owner, Michael Appleman, paid 46 chiropractors kickbacks for ordering MRIs, which Farmers claims were not always medically necessary. Appleman declined to comment.