Farmers Insurance Exchange is seeking $1 million in damages from 46 Minnesota chiropractors and a mobile diagnostic imaging facility for an illegal kickback scheme that sent Farmers customers for unneeded MRI scans.

“This type of alleged kickback scheme harms all of our insurance customers because of the adverse impact insurance fraud has on insurance premiums,” said Sean Zavala, director of special investigations for the Farmers Insurance Exchange, in a statement. “We are committed to investigating insurance fraud and doing all we can do to stop these practices.”

According to the lawsuit filed in U.S. District Court in Minneapolis, in 2011 Edina, Minn.-based business Mobile Diagnostic Imaging (MDI) courted local chiropractors, clinics and chiropractic students—sometimes with a vacation to the owner's property in the Cayman Islands—offering a “confidential rental agreement” to lease their office equipment, including telephones, fax machines, copiers and internet access.

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