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United States Attorney Erica H. MacDonald today announced the sentencing of WILLIAM KYLE SUTOR III, 38, to 16 months in prison for health care fraud. SUTOR, who pleaded guilty on February 3, 2020, was sentenced yesterday before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.

According to the defendant’s guilty plea and documents filed in court, between 2015 and 2016, SUTOR, a licensed personal injury attorney, engaged in a scheme to defraud providers of automobile insurance policies. Specifically, SUTOR conspired with chiropractors and patient recruiters, referred to as “runners.” As part of the scheme, the chiropractor would pay the runner a fee, typically between $1,000 and $1,500, for every individual that the runner brought to the chiropractor’s clinic to become a patient. In addition, SUTOR would pay the runner a fee, typically $300, for every individual that became a client of SUTOR’s. The result was that patients got paid to receive chiropractic services.  SUTOR, the chiropractors, and the runners took steps to conceal their scheme, including making kickback payments in cash or by checks written out to appear that they were payments for legitimate legal services. In his plea agreement, SUTOR acknowledged sending an attorney demand letter on behalf of a recruited patient to an insurance company for chiropractic services he knew had not in fact been performed.

This case was the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI.

Assistant U.S. Attorney David J. MacLaughlin prosecuted the case.

Defendant Information:

WILLIAM KYLE SUTOR III, 38

Minnetonka, Minn.

Convicted:

  • Conspiracy to commit health care fraud, 1 count

Sentenced:

  • 16 months in prison
  • One year of supervised release

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

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