Athletic club remains open after charges

Published: 2010-07-04 18:56:03
Author: Brian Bingaman | The Reporter | March 23, 2010

HATFIELD - magine the shock of learning your landlord is accused of bilking an insurance company out of almost $400,000.

“I’m blown away. We had no idea this was going on,” said Karen Latta, owner of the Renzo Gracie Pa. Academy, which serves more than 500 martial arts students within the facilities of the Hatfield Athletic Club on Bethlehem Pike, Hatfield Township.

Latta’s reaction was to a report that the U.S. Attorney’s office in Philadelphia is charging chiropractor Raymond Brozek, as well as Mark Levin and Michael Karp, who were named in a press release as owners of the club, with health-care fraud.

Between 2004 and 2006, it is alleged that Rehab One, a chiropractic and rehabilitation facility inside the club, and Rehab Two, a gym located in the basement of Levin’s home, fraudulently billed Independence Blue Cross approximately $1.9 million for procedures that were either not medically necessary; not performed at all; performed by unlicensed staff members not under Brozek’s direct supervision; or not reimbursable by IBC, according to the press release from the U.S. Attorney’s Office.

The billing allegedly resulted in payments from IBC totaling approximately $399,822, the U.S. Attorney’s office said.

Latta expressed concerns regarding public perception of her business, which, she said, was not involved with the chiropractic practice.

Rehab One closed in 2006, Latta said.

“Probably the biggest thing for people to know is there are good businesses within the Hatfield (Athletic) Club. The Hatfield club is a separate entity, along with Rehab One. We’re a good business. We’re not involved with any of this,” Latta said, referring to the Renzo Gracie Pa. Academy and fellow tenants Delaware Valley Dance Academy and Kidnastics.

Full story