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
Tweet
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

  • Global economic growth will moderate as the labor force shrinks
  • Estate planning during the great wealth transfer
  • Main Street families need trusted financial guidance to navigate the new Trump Accounts
  • Are the holidays a good time to have a long-term care conversation?
  • Gen X unsure whether they can catch up with retirement saving
More Advisor News

Annuity News

  • Pension buy-in sales up, PRT sales down in mixed Q3, LIMRA reports
  • Life insurance and annuities: Reassuring ‘tired’ clients in 2026
  • Insurance Compact warns NAIC some annuity designs ‘quite complicated’
  • MONTGOMERY COUNTY MAN SENTENCED TO FEDERAL PRISON FOR DEFRAUDING ELDERLY VICTIMS OF HUNDREDS OF THOUSANDS OF DOLLARS
  • New York Life continues to close in on Athene; annuity sales up 50%
More Annuity News

Health/Employee Benefits News

  • Guess which country pays the most for health care
  • GUEST COLUMN: Working is no guarantee you’ll have health insurance
  • THE PUBLIC PULSE Sunday Public Pulse
  • Stafford woman's premiums set to rise to $2,240 a month Stafford woman's premiums set to rise to $2,240 a month
  • Dec. 15 last day for ACA health coverage starting Jan. 1
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Legals for December, 12 2025
  • AM Best Affirms Credit Ratings of Manulife Financial Corporation and Its Subsidiaries
  • AM Best Upgrades Credit Ratings of Starr International Insurance (Thailand) Public Company Limited
  • PROMOTING INNOVATION WHILE GUARDING AGAINST FINANCIAL STABILITY RISKS ˆ SPEECH BY RANDY KROSZNER
  • Life insurance and annuities: Reassuring ‘tired’ clients in 2026
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

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
  • ePIC University: Empowering Advisors to Integrate Estate Planning Into Their Practice With Confidence
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
© 2025 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