Md. Chiropractor Sentenced To Prison For Insurance Fraud - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Property and Casualty News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Property and Casualty News RSS Get our newsletter
Order Prints
June 25, 2014 Property and Casualty News
Share
Share
Post
Email

Md. Chiropractor Sentenced To Prison For Insurance Fraud

Danielle E. Gaines, The Frederick News-Post, Md.
By Danielle E. Gaines, The Frederick News-Post, Md.
McClatchy-Tribune Information Services

June 25--HARRISBURG, Pa. -- The good deeds Larry Herman had done to help charity and Frederick-area runners were not enough to spare him time in prison, a federal judge decided Tuesday.

Herman, 48, a Frederick chiropractor and former Frederick Marathon assistant director, pleaded guilty in December in a Pennsylvania federal court to filing false statements in health care matters, a felony.

According to prosecutors, Herman, who owns Herman Chiropractic in Waynesboro, Pennsylvania, filed a bogus automobile accident injury claim.

Herman submitted a claim to the USAA insurance company in May 2012 for injuries he said he suffered in an August 2011 automobile accident in Maryland, according to the U.S. Attorney's Office for the Middle District of Pennsylvania.

To support his claim of injuries and demand for $60,000 from the insurance company, Herman instructed a chiropractor who works for him to create false treatment records, which were printed on letterhead for a fictitious business, according to prosecutors.

Around the same time, in late 2011, Herman participated in several 5K, 10K, half marathon and marathon races, according to a news release from the U.S. Attorney's Office.

During an emotional sentencing hearing before U.S. District Judge Sylvia H. Rambo in Harrisburg, two of Herman's friends testified about his good character.

"I've grown to know Larry as a rare and truly selfless person," James Hyrkas said. He said Herman's guilty plea to a felony crime was an "absolute aberration" in his overall character.

Seventeen people sent the judge letters in support of Herman, who is a member of Marathon Maniacs and former member of the board of directors of Running USA. He founded Running Down a Dream and was the winner of the 2006 Lewis Memorial Annual Award from the Frederick Steeplechasers' Running Club.

Herman also donated his time to several other charitable causes, his attorney Michael J. McCarrie said.

McCarrie called the witnesses as he tried to persuade Rambo to consider variances from federal sentencing guidelines, which recommended a 10-month to 16-month sentence, according to court records.

McCarrie argued that a variance was justified for two reasons: that the recommended sentence was based on an intended $60,000 loss but USAA never suffered any loss, and because other people, including the other chiropractor and Herman's attorneys, also had roles in the false claim.

Assistant U.S. Attorney Kim Douglas Daniel disputed the arguments. Federal sentencing guidelines are based on the intended loss, he said.

Daniel also said the second chiropractor's role was the result of coercion by Herman. The 26-year-old chiropractor worked at Herman's office and was approached more than once by him about the claims. He instructed her which billing codes to use and created the template on which to print the bills, Daniel said.

The attorneys who were representing Herman for the insurance claim initially believed him but refused to continue work after the deception came to light, Daniel said.

The U.S. Attorney's Office signed a nonprosecution agreement with the other chiropractor.

Herman apologized during the hearing.

"I apologize to everyone involved for my actions," Herman said.

Rambo said she agreed that Herman's actions were "out of character" but that a "just punishment" was necessary.

She sentenced him to five months in prison, beginning later this month. After release, Herman must serve an additional five months of home confinement during a one-year sentence of supervised release and pay a $700 fine.

The maximum penalty for the charge is five years in prison, a $250,000 fine and three years of supervised release.

The case was investigated by the Harrisburg Office of the FBI.

Herman declined to comment after the hearing.

Follow Danielle E. Gaines on Twitter: @danielleegaines.

___

(c)2014 The Frederick News-Post (Frederick, Md.)

Visit The Frederick News-Post (Frederick, Md.) at www.fredericknewspost.com

Distributed by MCT Information Services

Wordcount:  623

 

Advisor News

  • Changes, personalization impacting retirement plans for 2026
  • Study asks: How do different generations approach retirement?
  • LTC: A critical component of retirement planning
  • Middle-class households face worsening cost pressures
  • Metlife study finds less than half of US workforce holistically healthy
More Advisor News

Annuity News

  • Trademark Application for “INSPIRING YOUR FINANCIAL FUTURE” Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • Jackson Financial ramps up reinsurance strategy to grow annuity sales
  • Insurer to cut dozens of jobs after making splashy CT relocation
  • AM Best Comments on Credit Ratings of Teachers Insurance and Annuity Association of America Following Agreement to Acquire Schroders, plc.
  • Crypto meets annuities: what to know about bitcoin-linked FIAs
More Annuity News

Health/Employee Benefits News

  • Patients feel strain of Florida Blue fallout with Broward hospitals: ‘Just lunacy’
  • SENATOR THOMPSON'S LEGISLATION TO CURB DENTAL INSURANCE OVERREACH RECEIVES FULL SENATE APPROVAL
  • DEPARTMENT OF HUMAN SERVICES OFFICIAL TALKS PROGRAM INTEGRITY UPDATES
  • ATTORNEY GENERAL JAMES SECURES SWEEPING REFORMS IMPROVING ACCESS TO MENTAL HEALTH CARE FOR EMBLEMHEALTH MEMBERS
  • EmblemHealth will pay $2.5 million after investigation reveals 'ghost network' of providers
More Health/Employee Benefits News

Life Insurance News

  • International life insurer Talcott to lay off more than 100 in Hartford office
  • International life insurer to lay off over 100 in Hartford office
  • Puritan Life SVP Dierdre Woodruff named Life Insurers Council board chair
  • National Life Group Selects FINEOS AdminSuite to Transform Living Benefit and Life Insurance Claims Operations
  • Securian Financial Promotes Kent Peterson to Senior Vice President for Institutional Retirement Solutions
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

LIMRA’s Distribution and Marketing Conference
Attend the premier event for industry sales and marketing professionals

Get up to 1,000 turning 65 leads
Access your leads, plus engagement results most agents don’t see.

What if Your FIA Cap Didn’t Reset?
CapLock™ removes annual cap resets for clearer planning and fewer surprises.

Press Releases

  • Hexure Launches First Fully Digital NIGO Resubmission Workflow to Accelerate Time to Issue
  • RFP #T25221
  • LIDP Named Top Digital-First Insurance Solution 2026 by Insurance CIO Outlook
  • Finseca & IAQFP Announce Unification to Strengthen Financial Planning
  • Prosperity Life Group Appoints Nick Volpe as Chief Technology Officer
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet