Yardley Drug Treatment CEO Admits Bilking Patients, Insurance

YARDLEY, PA — The CEO and co-founder of a Yardley-based drug rehab company has admitted in court to bilking money from patients and insurance companies, according to authorities

Jason Gerner, 46, of Shamong, New Jersey, pleaded guilty Wednesday to operating a fraudulent drug and alcohol treatment centers in Yardley, Bala Cynwyd and Fort Washington, according to Pennsylvania Attorney General Josh Shapiro.

Gerner, the co-founder and chief executive officer of Liberation Way, pleaded guilty to criminal conspiracy to commit healthcare fraud and criminal conspiracy to commit money laundering.

Authorities said he and the other employees generated millions of dollars in profits by exploiting individuals with drug and alcohol dependencies as tools to defraud insurance companies.

Additionally, former Liberation Way worker Michael Sarubbi II, 53, of Cherry Hill, N.J., pleaded guilty Wednesday to theft by deception, conspiracy to commit theft by deception, and insurance fraud.

Dana Fetterman, 35, of Haddon Township, New Jersey — the brother of Liberation Way's co-founder, Dallas Fetterman who died of a drug overdose in 2017 — pleaded guilty to conspiracy to commit dealing in proceeds, as well.

Dana Fetterman had a "consulting contract" with Liberation Way and falsely represented that he had a background in the addiction industry, even though he did not.

Assistant United States Attorney for the Eastern District of Pennsylvania Jennifer Williams announced state and federal criminal charges against 11 people and nine businesses in connection with Liberation Way in March 2019 after a Grand Jury investigation revealed a sophisticated, multi-layered scam that took advantage of vulnerable people suffering from substance use disorder to generate millions in profits.

Sentencing for Gerner is scheduled for Jan. 13, 2020. Sentencing for Sarubbi and Dana Fetterman was deferred to a later date.

Dr. Domenick Braccia, Dr. Ramesh Sarvaiya, and Jesse Peters have pleaded guilty to federal charges and are awaiting sentencing for their involvement with Liberation Way.

Litigation against additional defendants is ongoing.

Patch's Max Bennett contributed to this report.