03-03-2025
Owners of Hertel & Brown plead guilty to wire, healthcare fraud
The top three defendants in a local $22 million healthcare fraud case have reached a plea deal with the federal government.
The owners and founders of Hertel and Brown Physical Therapy have changed their plea before a federal judge Monday morning.
All parties are now pleading guilty to wire and healthcare fraud.
Aaron Hertel, 46, and 48-year-old Michael Brown both pleaded guilty to count one of the federal indictments handed to the business back in 2021.
Defendants in Hertel & Brown case reach plea deal
In doing so, the recommended sentence for conspiracy to commit wire and health care fraud is six years in prison, with three years of supervised release to follow the sentence served along with restitution that has yet to be determined, and fines.
The business, its owners, and employees have been accused by the federal government of attempting to overbill insurance companies as well as Medicare and Medicaid from January 2007 through October of 2021.
United States attorneys outlined evidence at Monday's change of plea hearing.
That included the use of unlicensed employees giving unlicensed treatments to patients, who were billed as if a physical therapist conducted those treatments.
FBI raid Hertel & Brown offices for reported insurance fraud
According to prosecutors, an alleged documented exchange between Hertel & Brown acknowledged the need for what they called 'creative billing' to help the business.
Sentencing will take place on August 28. Until then, both Hertel and Brown remain free on bond.
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