Doylestown Man Admits Role In Drug Treatment Center Fraud Scheme

DOYLESTOWN, PA — A Doylestown man involved in an elaborate insurance fraud scheme at a Bucks County-based addiction treatment center has pleaded guilty, United States Attorney William M. McSwain announced.

Branden Coluccio, 32, on Wednesday entered a guilty plea to charges of conspiracy to commit health care fraud. The charges against Coluccio stem from federal and state investigations into the fraud schemes connected with the now-closed Liberation Way.

Coluccio was a co-founder of Liberation Way, which was based in Yardley and operated facilities in Bala Cynwyd and Fort Washington.

Authorities say Liberation Way employees committed an array of health care fraud schemes, including an over-billing scheme connected with the facility’s medical director, as well as a kick-back scheme involving thousands of medically-unnecessary urine tests which were sent to Florida-based laboratories for analysis, prosecutors said.

Authorities said Coluccio fraudulently purchased premium insurance policies for prospective patients on their behalf, which then allowed Liberation Way to bill insurance companies for expensive “treatment” purportedly provided to these patients, McSwain said. Liberation Way was illegally paying the premiums on these plans.

Under the plea agreement, the court is expected to impose a 37-month sentence, as well as also payment of more than $3 million in restitution. Sentencing is scheduled for May 22.

It is the fifth federal case filed against defendants associated with Liberation Way. Four other defendants — Dominick Braccia, Ramesh Sarvaiya, Jesse Peters, and Jason Gerner — have all pleaded guilty.

The latter three have yet to be sentenced; Braccia was sentenced in September 2019 to a term of 37 months in prison.

“Liberation Way was essentially a front for several multi-layered, years-long schemes that crossed state lines and victimized hundreds of people who needed help,” said U.S. Attorney McSwain. “The convictions coming out of this case send a clear message to those attempting to profit from fraud and the despair of individuals battling addiction: if you behave in this manner, you will be held accountable.