Two Erie County residents have each been sentenced to six years in federal prison and fined $250,000 for their roles in a conspiracy to commit wire fraud and healthcare fraud. The sentencing was announced by United States Attorney Troy Rivetti.
Aaron Hertel, 47, of North East, Pennsylvania, and Michael Brown, 49, of Erie, Pennsylvania, received their sentences from United States District Judge Susan Paradise Baxter. Both men pleaded guilty to one count in March 2025. Their sentences include three years of supervised release following their prison terms.
Court documents showed that Hertel and Brown led a scheme at Hertel & Brown Physical and Aquatic Therapy. They directed employees to use unlicensed technicians for patient treatments while billing insurance as if licensed professionals had provided the care. The fraudulent activities included overstating treatment times—sometimes exceeding the hours clinics were open—and altering patient schedules to make it appear patients received individual attention required by Medicare. In reality, multiple patients were treated simultaneously but billed as if they had one-on-one care.
Judge Baxter highlighted the harm caused to employees and taxpayers as a result of the defendants’ actions. Restitution owed by the company and its former owners will be determined at 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 indicted along with their physical therapy business in November 2021; most defendants pleaded guilty while one was convicted after 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 credited several agencies—including federal investigators from multiple inspector general offices—for their work leading up to these convictions.
