Two Erie County residents have been sentenced to six years in federal prison and fined $250,000 each for their roles in a conspiracy involving 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, were sentenced by United States District Judge Susan Paradise Baxter. Both pleaded guilty to one count in March 2025. Their sentences include three years of supervised release following imprisonment.
Court documents revealed that Hertel and Brown managed a scheme at Hertel & Brown Physical and Aquatic Therapy. The conspiracy involved using unlicensed technicians to treat patients while billing insurance providers as if licensed professionals had provided the care. The clinics also routinely billed for more treatment time than the five locations were open each day, resulting in significant overbilling. Additionally, records were manipulated to show patients received one-on-one treatment required by Medicare when they had not; instead, multiple patients were treated simultaneously but billed as if they received individualized care.
Judge Baxter noted before sentencing that the actions of Hertel and Brown caused substantial harm to employees and resulted in a large theft of taxpayer funds. Restitution will be determined at a hearing scheduled for April.
United States Attorney Rivetti stated: “Our office is committed to combating health care fraud and ensuring that health care professionals follow the law and act with integrity. Today’s sentences make clear that those who defraud our health care system face serious consequences and will be punished for their crimes.”
FBI Pittsburgh Acting Special Agent in Charge Amie Loos said: “Federal healthcare programs are not an open checkbook. 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.”
Maureen Dixon, Special Agent in Charge of HHS-OIG, commented: “Today’s sentences send a clear message: anyone who exploits a position of trust to fuel personal greed will be found and held accountable. 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.”
Special Agent in Charge Nate Landkammer from the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office added: “Ensuring high-quality healthcare for veterans is a top priority and these sentences reaffirm our commitment to safeguarding VA programs and services. We are grateful for the efforts of the U.S. Attorney’s Office and our law enforcement partners in bringing this case to justice.”
Christopher M. Silvestro from DCIS said: “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. 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 part of an indictment from November 2021 involving 20 individuals plus their business entity; most defendants—including Hertel & Brown Physical and Aquatic Therapy—pleaded guilty or were convicted on similar charges related to wire fraud or healthcare fraud.
The prosecution was handled by Assistant United States Attorneys Christian A. Trabold, Paul S. Sellers, and Molly W. Anglin.
U.S. Attorney Rivetti recognized several agencies—including federal investigators from multiple departments—for their work leading up to these convictions.
