The PA Attorney General’s Office has charged a rehab center in Yardley with insurance fraud, identity theft, and corrupt organization. At a press conference Monday, AG Josh Shapiro announced Liberation Way exploited opioid addicts and defrauded insurance companies to make millions of dollars.
Shapiro said a grand jury investigation revealed three major schemes. In total, Liberation Way made revenues of about $48 million illegally for co-founders Jason Gerner and Dallas Fetterman, and other owners Branden Coluccio and Andrew McLellan.
First, the company allegedly targeted out-of-network insurances to charge “exorbitant” premiums. This earned them $44 million.
They then took thousands of unnecessary urine samples and sent them to a Florida lab, giving Independence Blue Cross the cost. This bill amounted to $33 million, though IBX only paid $4 million.
Finally, Shapiro said Liberation Way housed patients in company-owned, unlicensed “sober homes” to act as inpatient care. Even worse, they allegedly purposefully made these environments unsafe for patients.
One home was even reportedly known as the “party house” where it was almost impossible for an opioid addict in recovery not to relapse. In this way, Liberation Way would allegedly keep addicts in a cycle to continue charging insurers; some patients relapsed up to eight times. Employees were also found to have sexual relationships with patients.
“I cannot overstate how appalling this case is in light of the #OpioidEpidemic that is ravaging PA,” AG Shapiro tweeted. “Those operating this scheme harassed + threatened patients for money & lured them into unnecessary ‘treatment’ for monetary gain. They’re now facing charges.”
Jason Gerner was fired from his position of CEO in May 2018. Dallas Fetterman died of a drug overdose the same year.
The Attorney General’s Office seized $14.6 million from Gerner and Coluccio’s investment accounts. The money will be used to pay back those who were defrauded.
In all, arrest warrants were issued to eleven individuals and nine corporations. The investigation is still active and ongoing.