Rehabilitation Fraud in California

News

Over the past two years, some $94 million has been awarded to 56 rehab and health care clinics in Southern California where fraudulent and questionable billings have been discovered.

July 30, 2013

The Center for Investigative Reporting, in collaboration with CNN staked out the clinics for months, monitoring clinic paperwork. For example, when investigators camped out in front of Able Family Support in San Fernando Valley they counted 30 visitors. The clinic falsely recorded 179 visitors for the day.

After this discovery, the other 56 clinics were put under investigation. Currently, 16 have been temporarily suspended due to malpractice.

 The reporting center interviewed many patients and found that most were foster children and that nearly one third had been diagnosed with fake addictions. Other people were bribed with snacks, cash, and cigarettes to sign in to the clinics and have short sessions in order to falsify documentation.

Able Family Support Clinic Director Alexander was arrested in 2000 on organized crime charges, just three years before Californian officials granted him permission to open his clinic.

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