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

  • Retirement Reimagined: This generation says it’s no time to slow down
  • The Conversation Gap: Clients tuning out on advisor health care discussions
  • Wall Street executives warn Trump: Stop attacking the Fed and credit card industry
  • Americans have ambitious financial resolutions for 2026
  • FSI announces 2026 board of directors and executive committee members
More Advisor News

Annuity News

  • Retirees drive demand for pension-like income amid $4T savings gap
  • Reframing lifetime income as an essential part of retirement planning
  • Integrity adds further scale with blockbuster acquisition of AIMCOR
  • MetLife Declares First Quarter 2026 Common Stock Dividend
  • Using annuities as a legacy tool: The ROP feature
More Annuity News

Health/Employee Benefits News

  • Health insurance enrollment deadline extended
  • Fresno Unified broke lifetime benefits promise after 2023 decision, retirees say
  • More Texans have signed up for ACA health coverage despite expiring subsidies and falling national enrollment
  • Military personnel, families can receive free test for cancer
  • Health insurance costs putting squeeze on North Attleboro budget
More Health/Employee Benefits News

Life Insurance News

  • Americans Cutting Back on Retirement Savings, Allianz Life Study Finds
  • ‘My life has been destroyed’: Dean Vagnozzi plots life insurance comeback
  • KBRA Releases Research – 2026 Global Life Reinsurance Sector Outlook: Cautious Optimism as Asset-Intensive Sector Enters Its Next Phase
  • Best's Review Looks at What’s Next in 2026
  • Life insurance application activity ends 2025 with record growth, MIB reports
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.

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.

8.25% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • Prosperity Life Group® Names Industry Veteran Mark Williams VP, National Accounts
  • Salt Financial Announces Collaboration with FTSE Russell on Risk-Managed Index Solutions
  • RFP #T02425
  • RFP #T02525
  • RFP #T02225
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