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Liberation Way Founder Gets 3 Years for $9M Rehab Fraud
PHILADELPHIA – Jason Gerner, 46, of Shamung, New Jersey, is headed to federal prison after being sentenced to 36 months for his central role in a brazen healthcare fraud scheme. U.S. District Court Judge Wendy Beetlestone also ordered Gerner to pay $9,338,607 in restitution and forfeit $444,983. The sentence stems from his co-founding of Liberation Way, a drug and alcohol rehabilitation facility with locations in Yardley, Bala Cynwyd, and Fort Washington, Pennsylvania, which prosecutors revealed was a front for systematic theft from insurance companies.
The scheme, exposed during a multi-agency investigation, wasn’t just about inflated bills; it was a calculated exploitation of vulnerable individuals battling addiction. Prosecutors detailed how Liberation Way fraudulently purchased premium insurance policies for prospective patients, then billed for “treatments” that were never rendered. The operation relied on pre-signed medical orders from the facility’s sole doctor, authorizing tests and procedures for patients who were never actually seen or examined. A second doctor was paid to sign off on even more unnecessary urine tests.
The real money, however, came from the sheer volume of those urine tests. Liberation Way shipped samples to Florida labs, racking up excessive and medically unjustified claims to maximize insurance payouts. The facility didn’t stop there. They accepted kickbacks on those inflated insurance payments – a clear indication of criminal intent. Then, they attempted to conceal the illicit profits through a network of shell companies disguised as legitimate consulting firms, according to court documents.
“My Office will not tolerate health care fraud in any form, especially the kind that takes advantage of at-risk patients and exploits their addictions,” thundered U.S. Attorney William M. McSwain. “Those who think that they can game our health care system — which is already strained under the weight of an ongoing opioid epidemic — and prey upon vulnerable people will face the consequences. Gerner will rightly spend years in prison and pay millions of dollars as the result of his criminal conduct.”
The outrage extended beyond the federal level. Pennsylvania Attorney General Josh Shapiro minced no words, stating, “The employees of Liberation Way looked at the opioid epidemic devastating Pennsylvania and saw an opportunity to make a buck off the backs of vulnerable people. Pennsylvanians with substance abuse disorder, who deserved care from Liberation Way, were harmed instead.”
Federal investigators from the FBI, Department of Health and Human Services, Office of Personnel Management, and Department of Labor Employee Benefits Security Administration, working alongside the Pennsylvania Attorney General’s Office, built the case. FBI Special Agent in Charge Michael J. Driscoll put it bluntly: “Gerner and his colleagues operated Liberation Way under the guise of helping addicts get healthy. In reality, the only things that benefitted were these fraudsters’ bank balances.” Assistant United States Attorney Nancy Beam Winter prosecuted the case. The message is clear: profiting from addiction will not go unpunished.
Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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