A man responsible for enabling a faux rehabilitation center in Yardley Borough has been sentenced for health care fraud.
Jesse Peters, 45, will spend 15 months and one day behind bars for conspiring with the owners of Liberation Way to take advantage of people who needed help. He will then face three years of supervised release and pay $3,405,065 in restitution.
The now closed drug and alcohol rehabilitation center fronted as a sanctuary for people with substance abuse disorders. While not a co-owner, Peters participated in the scheme to take advantage of those who thought they were in rehab.
Among some of the more heinous aspects to Liberation Way, the facility was specifically designed to make patients relapse. The facility had several unlicensed “sober homes,” but one was known as the “party house.” Drugs and alcohol were readily available.
On top of this, employees reportedly had sexual relationships with patients.
PA Attorney General Josh Shapiro alleged Liberation Way would target out-of-network insurance companies, then charge “exorbitant” premiums. The company generated $44 million with this method alone.
Then, the company ordered thousands of unnecessary urine tests and send them to a lab in Florida. They tried to give the bill to Independence Blue Cross to the tune of $33 million, but only netted $4 million.
Peters was directly involved in the scheme to use urine tests to make money, according to the Eastern District of Pennsylvania U.S. Attorney’s Office. He was associated with the urine lab in Florida.
He sent nearly $1.2 million in kickbacks to the owners of Liberation Way.
“Those who think they can profit off of health care fraud are mistaken and may soon find themselves behind bars,” said U.S. Attorney McSwain. “Whether it’s ordering unnecessary laboratory tests to try to get rich quick or any other type of health care fraud, my Office is focused on protecting our nation’s health care system and punishing those who abuse it.”
Peters pleaded guilty to a charge of healthcare fraud in 2019.
Other individuals involved in the scheme are already facing justice, including the only doctor on staff at the organization. Liberation co-founder Dallas Fetterman died of a drug overdose in 2018.