6 plead guilty in $48M drug treatment fraud scheme involving Whitehall center

Ohioans tied to Braking Point Recovery Center have admitted their roles in billing Medicaid improperly for more than two years. Those pleading guilty include the Delaware County woman who operated the center in Whitehall.

YOUNGSTOWN — Federal authorities say six people have pleaded guilty to charges involving a $48 million Medicaid fraud scheme involving an addiction services company operating near Columbus and Youngtown.

Among those who entered pleas Friday in Youngstown was 39-year-old Ryan Sheridan, of Leetonia, the owner of Braking Point Recovery Center, which operated drug and alcohol rehabilitation facilities in Austintown and in Whitehall.

A Delaware County woman, 51-year-old Lisa Pertee, of Sunbury, also recently pleaded guilty. She had managed the Whitehall Braking Point facility.

Prosecutors said Braking Point between January 2015 and October 2017 falsely billed Medicaid nearly 135,000 times. They say those claims included inflated costs for services, billing for patients who hadn’t been medically diagnosed and case management services for patients working out at Sheridan’s gym.

During a hearing in front of U.S. District Judge Benita Pearson in Youngstown, Sheridan admitted Friday to conspiracy, health-care fraud, operating a drug premises, money laundering and other charges, Cleveland.com reported. He faces up to 10 years in federal prison and is in the custody of the U.S. Marshals Service.

Authorities want Sheridan to forfeit $3 million, properties he owns in several Ohio counties and replica movie vehicles.

Cleveland.com reported that Sheridan and Pertree were joined in guilty pleas by Sheridan’s ex-wife, Jennifer Sheridan, 41, of Austintown; Kortney Gherardi, 30, of Girard; Dr. Thomas Bailey, 45, of Poland; and Dr. Arthur Smith, 55, of Austintown. They all are scheduled to be sentenced in January.

“These defendants ... used the drug epidemic plaguing Ohio as a way to line their pockets and profited off the suffering of others,” U.S. Attorney Justin Herdman told Cleveland.com.