CASE UPDATE: Two More Liberation Way Employees Plead Guilty

January 6, 2020 | Topic: Criminal

HARRISBURG – Two more of the eleven people arrested in 2019 for their roles in the massive Liberation Way insurance fraud scheme pleaded guilty today, Attorney General Josh Shapiro said.

Michael Armstrong and Muhammad Hadi were charged in March 2019 for their involvement in the fraudulent drug and alcohol treatment center, based in Bucks County. Armstrong, Liberation Way’s chief networking officer, recruited clients and tricked many into getting treatment with fraudulently obtained insurance coverage. Hadi owned and operated “sober homes” for Liberation Way patients, which helped others obtain the fraudulent insurance policies.

“As Pennsylvania was being bludgeoned by the opioid epidemic, these individuals saw an opportunity to capitalize and make money on the backs of those struggling with addiction,” said Attorney General Shapiro. “I’m proud of our work here today – and by shutting down this network of scam artists who preyed upon our most vulnerable – we are serving justice for the people of Pennsylvania.”

Hadi’s sober homes were named Prestige Worldwide, Legacy House, and Liberation House.

Liberation Way, based in Yardley, operated facilities in Bala Cynwyd and Fort Washington, Montgomery County. With its holding company, Liberation Behavioral Health, the company’s founding members, various employees, and investors, illegally secured and paid premiums for patients’ insurance policies so it could bill insurance companies for substandard, medically unnecessary, or sometimes non-existent treatment. Patient policies were secured with fraudulent information so that patients qualified for “platinum” coverage and Liberation Way would be receive the highest possible reimbursement.

This case is being prosecuted by Senior Deputy Attorney General Robert LaBar and Deputy Attorney General Kristyne Crist at the state level and AUSA Nancy Beam Winter at the federal level.

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