Feb 9, 2022
February 09, 2022 - /PressAdvantage/ - Costa Mesa, CA – Owners and patient recruiters at several substance abuse treatment facilities have been charged with running an alleged “patient-selling network” that paid money for addicts referred to the centers in Orange County, California. The U.S. Department of Justice (DOJ) announced it had filed criminal charges against 10 defendants, four of whom have been taken into custody.
“Driven by greed, dishonest operators of substance abuse treatment centers have invaded Southern California, but a coalition of law enforcement entities have responded forcefully,” said U.S. Attorney Tracy L. Wilkison. “These corrupt individuals pay illegal kickbacks to obtain insured patients whose health plans pay generous benefits intended to cover legitimate treatments and tests. While many recovery facilities offer much-needed services to addicts, those targeted in this sweep take advantage of our nation’s opioid crisis by fueling a patient-selling network more interested in generating profits than giving help to vulnerable people.”
In announcing the arrests, Wilkison and other law enforcement officials said they were the result of a 10-month-long investigation known as The Sober Homes Initiative. It targeted substance abuse facility owners and patient recruiters who allegedly, among other things, provided kickback payments for the referral of patients to substance abuse treatment facilities, recovery homes, or laboratories.
Investigators charge that the facility owners assigned monetary values to clients based on the type of insurance they had, and then paid recruiters a kickback for each person referred to their addiction treatment facilities. The longer the clients received treatment, the more money the recruiters were paid.
“These cases reflect the continued efforts of the Department of Justice to combat fraud by substance abuse treatment facilities and patient recruiters,” said Assistant Attorney General Kenneth Polite Jr. of the Justice Department’s Criminal Division. “These schemes take advantage of vulnerable members of our society – addiction patients seeking help. These cases illustrate the government’s commitment to protecting patients and prosecuting those who try to victimize them.”
“Fraudulent kickbacks in the substance abuse treatment field create perverse incentives for patient recruiters that oftentimes leave addicts in a toxic cycle of drug use and treatment,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to fighting fraud in the healthcare system so that those struggling with addiction can find legitimate care and encourages patients and employees to report kickback schemes.”
“It is unconscionable when owners and operators of substance abuse facilities abuse the systems designed to help patients recover from addiction,” said Special Agent in Charge Amy K. Parker of the Office of Personnel Management Office of the Inspector General. “We are extremely proud of our dedicated staff and federal law enforcement partner’s commitment to pursuing improper and illegal conduct that places vulnerable health care consumers at risk.”
“The suspects in this case specifically targeted vulnerable individuals in recovery and sold them as a commodity with no concern for their health or wellbeing,” said California Insurance Commissioner Ricardo Lara. “Receiving kickbacks for patient referrals endangers lives and has no place in our health care system.”
Resurgence Behavioral Health, a nationwide network of addiction treatment centers with headquarters in Costa Mesa, California thanks and congratulates the Sober Homes investigators for their swift, thorough action against the operators of this alleged network. Offering treatment to addicts based solely on their profitability to the facilities is unconscionable, it hurts the profession and, most of all, it hurts people in desperate need of help. Offering addiction treatment services to Orange County residents, Resurgence Behavioral Health is pro-recovery.
Anyone in need of treatment for substance abuse and addiction can speak to a treatment specialist at any time by calling (855) 458-0050. To learn more visit Resurgence online at www.resurgencebehavioralhealth.com.
###
For more information about Resurgence Alcohol & Drug Rehab Costa Mesa, contact the company here:
Resurgence Alcohol & Drug Rehab Costa Mesa
+19498996003
ReleaseID: 60049802
Taylor Swift has made history with Spotify, including by becoming the most-streamed female artist in a day for 2026, through her new single and extended album.
Kris Jenner has taken the Hidden Hills mansion where Keeping Up with the Kardashians was filmed, off the market.
Beck has paid tribute to late country music icon Dolly Parton, who he first met at a wedding when he was just a child.
Taylor Swift has broken two Spotify records for 2026 with the release of The Life of a Showgirl: The Encore.
Chris Hansen has blasted Robert Pattinson’s new movie about him as “exploitative and predatory” and said the team behind the film never reached out to him.
Sabrina Carpenter will join Tom Holland and Margaret Qualley in the upcoming Fred Astaire biopic.
Reba McEntire missed a call from Dolly Parton before she died and never found out what the country music icon wanted.
Presley Gerber - the 27-year-old model son of supermodel Cindy Crawford, 60, and businessman Rande Gerber, 64 and brother of model-and-actress Kaia Gerber, 25 - has been cremated, less than a week after his death.
Homegrown hero Kylie Minogue has dazzled the AFL grand final with pyrotechnics, wardrobe changes and a selection of her biggest hits.
Top Gun star Tom Cruise is determined to keep pushing himself as an actor because he wanted "adventure" from an early age.
A decades-old club tradition has again hosted a who's who of politics and Aussie Rules ahead of AFL's biggest day, where an unlikely star stole the limelight.
It was reported that Sarah Ferguson, the former Duchess of York, was "days away" from signing a seven-figure deal to work on a ‘tell-all book’.
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.