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Fraud & Corruption Status: Charged (alleged)

DOJ Charges 15 in Nearly $2B Los Angeles Health Care Fraud Takedown, Including a $1.6B Sham Rehab Scheme

By AFNS Research Desk · · 1 min read

Downtown Los Angeles skyline
Photo: Levi Clancy / Wikimedia Commons, CC BY-SA 4.0 (cropped)

Status: Charged October 22. The charges are allegations; no one has been convicted.

What happened

DOJ announced a Los Angeles health care fraud takedown on October 22 that charged 15 defendants in schemes it values at nearly $2 billion. Six of the defendants are medical professionals.

The $1.6 billion sham rehab case

The centerpiece is a $1.6 billion case in which prosecutors say a network recruited vulnerable people into substance-use treatment programs that were shams, then billed for services that weren't legitimately provided. DOJ describes it as the largest prosecution of its type in the department's history.

All of the charges are allegations at this stage.

Sources

  1. DOJ press release www.justice.gov
  2. Behavioral Health Business bhbusiness.com

See our sourcing & corrections standards.

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