Founders/Owners of Hertel & Brown Physical and Aquatic Therapy Each Sentenced to Six Years in Prison and Fined $250,000 for Wire and Healthcare Fraud Conspiracy

ERIE, Pa. - Two residents of Erie County, Pennsylvania, each have been sentenced in federal court to six years in prison, to be followed by three years of supervised release, and ordered to pay a $250,000 fine on their convictions of conspiracy to commit wire fraud and healthcare fraud, United States Attorney Troy Rivetti announced today.

United States District Judge Susan Paradise Baxter imposed the sentences on Aaron Hertel, 47, of North East, Pennsylvania, and Michael Brown, 49, of Erie, Pennsylvania. Both defendants pleaded guilty to one count in March of 2025.

According to information presented to the Court, Hertel and Brown led, managed, and supervised a conspiracy involving numerous employees at Hertel & Brown Physical and Aquatic Therapy that involved the use of unlicensed technicians to treat patients and then billed health insurance providers as if licensed physical therapists and physical therapist assistants had provided the treatment. Additionally, the conspirators consistently billed more treatment time each day than the five locations of Hertel & Brown clinics were open, resulting in massive fraudulent overbilling. Conspirators also tampered with the patient schedule to make it appear that patients had received one-on-one treatment as required by Medicare, which the patients had not received, with the clinics instead treating multiple patients at the same time and billing the patients as if they had received individualized treatment.

Prior to imposing sentence, Judge Baxter noted the significant negative impact on Hertel & Brown's employees caused by the defendants' actions and the enormous theft of taxpayer money that resulted from the conspiracy led by the defendants. Restitution from the company and the two former owners will be determined during an April hearing.

"Our office is committed to combating health care fraud and ensuring that health care professionals follow the law and act with integrity," said United States Attorney Rivetti. "Today's sentences make clear that those who defraud our health care system face serious consequences and will be punished for their crimes."

"Federal healthcare programs are not an open checkbook," said FBI Pittsburgh Acting Special Agent in Charge Amie Loos. "When dishonest providers knowingly skew paperwork to line their pockets, it gives them an unfair advantage over honest agencies playing by the book. Complex fraud cases leave a trail - one the FBI and our partners will follow with every tool and resource at our disposal to bring those responsible to justice."

"Today's sentences send a clear message: anyone who exploits a position of trust to fuel personal greed will be found and held accountable," said Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Deliberately inflating services to boost profits is a serious violation of public trust and undermines the integrity of Medicare, Medicaid, and other federally funded health care programs. HHS-OIG will continue collaborating with our law enforcement partners to pursue justice against those who defraud the American people."

"Ensuring high-quality healthcare for veterans is a top priority and these sentences reaffirm our commitment to safeguarding VA programs and services," said Special Agent in Charge Nate Landkammer with the Department of Veterans Affairs Office of Inspector General's Mid-Atlantic Field Office. "We are grateful for the efforts of the U.S. Attorney's Office and our law enforcement partners in bringing this case to justice."

"Today's sentencings demonstrate that DCIS, the criminal investigative arm of the Department of Defense's Office of Inspector General, will hold all those that conspire to defraud TRICARE, the healthcare system for military members and their families, accountable," said Christopher M. Silvestro, Special Agent in Charge of the Defense Criminal Investigative Service's (DCIS) Northeast Field Office. "Defendants Hertel and Brown led a company that valued greed over care. We will continue to work with our law enforcement partners, the Department of Justice, and the Defense Health Agency to protect the integrity of the TRICARE system."

Hertel and Brown were among 20 individuals, along with the physical therapy business itself, indicted in November of 2021, with the company and 17 of the defendants pleading guilty to conspiracy to commit wire fraud and healthcare fraud and one additional defendant being convicted of healthcare fraud following an April 2025 jury trial.

Assistant United States Attorneys Christian A. Trabold, Paul S. Sellers, and Molly W. Anglin prosecuted this case on behalf of the government.

United States Attorney Rivetti commended the Federal Bureau of Investigation, United States Department of Health and Human Services-Office of Inspector General, United States Department of Veterans Affairs-Office of Inspector General, Defense Criminal Investigative Service, Pennsylvania Office of Attorney General's Medicaid Fraud Control Section, and United States Office of Personnel Management-Office of Inspector General for the investigation leading to the successful prosecution of the defendants.