Chicago Chiropractor Clarence W. Brown III Sentenced to Nearly 6 Years for $2.1 Million Insurance Fraud

Case from 2024–2025 (U.S. Attorney's Office latest release: Nov. 24, 2025). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Clarence W. Brown III, 49, a Chicago chiropractor, was sentenced on Nov. 19, 2025, to five years and 10 months in federal prison for billing Blue Cross Blue Shield of Illinois for services he never provided, including treatments supposedly given while he was on international vacations or while his license was suspended, the U.S. Attorney's Office for the Northern District of Illinois announced [1].

How the scheme worked

According to the U.S. Attorney's Office [1] [2]:

1. The clinics: Brown owned and operated Dr. CB3 Wellness Inc. and Apex Integrated Medical Center Ltd., both in Chicago.
2. Phantom claims: From 2016 to 2020, he submitted more than 6,000 fraudulent claims to Blue Cross Blue Shield of Illinois for services he knew patients never received.
3. Impossible dates: Some claims were for services supposedly provided while he was on international vacations or while his medical license was suspended.
4. Fake records: He prepared false patient medical records and other documents to support the claims.
5. Lavish spending: He used the money for a house, a $100,000 BMW X5, international trips and shopping at luxury stores such as Tiffany's.

The loss figure was larger at sentencing than at trial. The 2024 conviction release said Brown billed about $1.3 million for services to members of two families and obtained about $750,000 [2]. The sentencing release put the total loss to the insurer at nearly $2.1 million [1].

The person sentenced

Clarence W. Brown III, 49, Chicago [1]

• Verdict: convicted by a jury April 12, 2024, on all nine health care fraud counts after a two-week trial [2].
• Sentence: five years and 10 months in federal prison and $2,088,884 in restitution to Blue Cross Blue Shield of Illinois, imposed Nov. 19, 2025, by U.S. District Judge John F. Kness.
• Prosecution: Assistant U.S. Attorneys Andréa L. Campbell and Misty N. Wright; investigated by the FBI Chicago Field Office.

"Defendant was motivated by greed," Campbell wrote in the government's sentencing memorandum, according to the release [1].

Red flags

• Explanation-of-benefits statements listing visits you never made, especially for family members.
• A provider who asks for your insurance card "for the file" and bills repeatedly with no visit.
• Treatment dates on bills that don't match your calendar.

What to do if you're targeted

1. Review every explanation of benefits and call your insurer about visits you didn't have.
2. Check your provider's license with the Illinois Department of Financial and Professional Regulation or your state's licensing board.
3. Report suspected fraud to your insurer and the FBI at tips.fbi.gov.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Clarence W. Brown III, 49, Chicago	N.D. Ill. (Judge Kness)	Convicted by jury April 12, 2024, on nine counts of health care fraud; sentenced Nov. 19, 2025, to 70 months in prison and $2,088,884 restitution	[1], [2]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Chicago Chiropractor Sentenced to Nearly Six Years in Prison for $2.1 Million Healthcare Fraud," Nov. 24, 2025. https://www.justice.gov/usao-ndil/pr/chicago-chiropractor-sentenced-nearly-six-years-prison-21-million-healthcare-fraud
2. U.S. Attorney's Office, Northern District of Illinois, "Chicago Chiropractor Convicted of Federal Health Care Fraud Charges," April 19, 2024. https://www.justice.gov/usao-ndil/pr/chicago-chiropractor-convicted-federal-health-care-fraud-charges

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