Newly filed motion says physical therapists Aaron W. Hertel, Michael R. Brown do not oppose order that they repay insurers total of $15 million derived from billing scheme at physical therapy clinic.
Restitution for Hertel & Brown owners reaches millions of dollars
On Aug. 21, 2026, the U.S. Attorney’s Office filed a motion that said the owners of Hertel & Brown Physical & Aquatic Therapy do not oppose a court order that they pay $15 million in restitution in their fraud case.
- The owners of Hertel & Brown Physical & Aquatic Therapy have agreed to pay $15 million in restitution for health insurance fraud.
- Aaron W. Hertel and Michael R. Brown were each sentenced to six years in federal prison and fined $250,000 in largest-ever case of white-collar crime in…
THE TUTUKA POWER STATION PROCUREMENT FRAUD (ESKOM)
Date: August 29, 2025 Perpetrator: Jessie Phindile Kubheka (Supplier Director)
Case Description: As part of the ongoing “cleaning up” of Eskom, Jessie Phindile Kubheka was sentenced to 12 years (with 5 years suspended) for defrauding the Tutuka Power Station. The case involved a sophisticated procurement syndicate that exploited Eskom’s emergency repair protocols. Kubheka’s company was contracted to deliver three high-specification containers for the power station. Only one container was ever delivered, and even that single unit failed to meet the required safety and technical specifications.
Despite the lack of delivery, Kubheka issued grossly inflated invoices, defrauding the utility of approximately R2.6 million. The Middelburg Specialised Commercial Crimes Court ordered Kubheka to repay the full amount. This case is significant because it marks a shift in Eskom’s strategy toward “naming and shaming” suppliers and pursuing full asset recovery. It serves as a stark warning to contractors that the 2026 climate of “Zero Tolerance” for state-owned enterprise (SOE) fraud is backed by active judicial enforcement.
Link to Original: Eskom Official – Tutuka Fraud Sentencing