Liberation Way Housing Ringleader Sentenced Up to 23 months in Prison, 5 Years Probation

Muhammad Hadi, one of the eleven defendants in the Liberation Way insurance fraud scheme, has been sentenced to 11 1/2 to 23 months with a concurrent 5 years probation, $500,000 restitution, and court costs before a federal court. Hadi owned and operated several treatment homes that were advertised as rehabilitation facilities for individuals suffering from substance abuse disorder, but were instead used to commit insurance fraud and steal funds used to care for victims of substance abuse.

“The opioid, heroin, and fentanyl epidemic is devastating Pennsylvania communities, yet the operators of Liberation Way exploited the victims of this crisis and used them as pawns for cynical profit,” said Attorney General Shapiro. “I’m proud of the hard work of my Office to hold the defendants accountable for their crimes and I look forward to continuing to work with our federal partners in the U.S. Attorney’s Office to deliver justice for the people of Pennsylvania.”

Liberation Way, based in Yardley, operated facilities in Bala Cynwyd and Fort Washington, Montgomery County. With its holding company, Liberation Behavioral Health, the company’s founding members, various employees, and investors, illegally secured and paid premiums for patients’ insurance policies so it could bill insurance companies for substandard, medically unnecessary, or sometimes non-existent treatment. Patient policies were secured with fraudulent information so that patients qualified for “platinum” coverage and Liberation Way would receive the highest possible reimbursement.

Former CEO Jason Gerner and Dr. Ramesh Sarvaiya are scheduled to be sentenced before a federal court; Jesse Peters, Dr. Domenick Braccia, and Branden Coluccio all pleaded guilty and were each sentenced before a federal court in 2020.  Elsie Concepcion, Michel Sarubbi and Michael Armstrong will be sentenced before a state court on a date yet to be determined. Scott Collins pleaded guilty and was sentenced before a state court in February 2020.