AG: Bucks County treatment center accused of exploiting those with addiction; 11 charged

HARRISBURG, Pa. (FOX 29) - Eleven people and nine business have been charged in connection with an elaborate insurance fraud scheme involving drug and alcohol treatment centers, Attorney General Josh Shapiro announced Monday.

The charges, which include criminal conspiracy, insurance fraud and identity theft, stem from an 18-month grand jury investigation that authorities say revealed a "sophisticated, multi-layered scam that took advantage of vulnerable people suffering from substance use disorder to generate millions in profits."

Those charged include the co-founder and executives of an addiction treatment firm accused of profiting off addicts by fraudulently billing insurance companies for tens of millions of dollars.

The case revolves around Liberation Way, a for-profit treatment company with centers in Bucks County that was sold to a private equity firm in 2017.

Shapiro says the two-year investigation found more than $44 million in profits from fraudulent schemes.

Those alleged schemes include billing for substandard, nonexistent or unnecessary treatment, generally targeting out-of-network insurance carriers.

Shapiro also says the company got kickbacks from insurance coverage of unnecessary urine lab tests and warehoused addicts in poorly run unlicensed inpatient facilities.

The Associated Press contributed to this report.