Man Gets Prison In Rehab Scheme With Bala Cynwyd Ties

BALA CYNWYD, PA — Another person involved in the Philadelphia-area drug rehab fraud scheme has been sentenced to prison. A founder of Liberation Way, which had a Bala Cynwyd location, was hit with a multi-year prison sentence and ordered to pay millions in restitution.

According to federal authorities, Jason Gerner, 46, of Shamung, New Jersey, was sentenced to 36 months in prison and three years of supervised release for his role in multiple healthcare fraud schemes as a co-founder of the drug and alcohol rehabilitation facility Liberation Way, which had locations in Bala Cynwyd, Fort Washington, and Yardley.

Gerner was also ordered to pay restitution in the amount of $9,338,607 and ordered to forfeit $444,983.

In August 2019, Gerner pleaded guilty to charges of conspiracy to commit health care fraud and conspiracy to commit money laundering for his role as a founder and operating partner of Liberation Way.

An investigation into the operations and management of the facility revealed various schemes.

Some schemes perpetrated via Liberation Way included fraudulently buying premium insurance policies for potential patients so Liberation Way could bill for “treatments” it didn't provide; using pre-signed medical orders for tests and treatments for patients who were not actually seen or examined by the only doctor employed by Liberation Way; paying a different doctor to sign urine-testing orders for patients who were never seen or examined; and shipping those urine samples for testing to laboratories in Florida in order to submit claims that were excessive and medically unnecessary to maximize billing to insurance companies.

Several others involved with Liberation Way have admitted to similar crimes and received prison sentenced.