3 defendants in Braking Point fraud case plead guilty

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The former owner of the recovery center is scheduled to appear in court later this week

Braking Point Recovery Center, Austintown

(WKBN) – Three of six defendants in the Braking Point Recovery fraud case pleaded guilty to charges Tuesday in federal court.

Thomas Bailey, Kortney Gherardi and Arthur Smith pleaded to a charge in their conspiracy to commit health care fraud case as part of a plea agreement.

The details of that agreement haven’t been released.

Bailey and Smith are scheduled to be sentenced on January 21, while Gherardi will be sentenced on January 23.

Smith and Bailey, both doctors, were medical directors who ran the Braking Point centers. Gherardi was the program director.

They, along with owner Ryan Sheridan and his ex-wife, Jennifer, as well as Director of Operations Lisa Pertee, were charged related to their work at the former Braking Point Recovery Center in Austintown, which offered treatment and services for those struggling with addiction.

Prosecutors said the facility billed Medicaid for services that weren’t provided, weren’t medically necessary, lacked proper documentation or had other issues that made them ineligible for reimbursement.

Jennifer Sheridan will be in court Thursday. Pertee and Ryan Sheridan have their hearings Friday.

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