Insurance fraud, cash exchanging hands. A rehab operator in California has been convicted of paying $2.9 million in kickbacks to "body brokers" who referred patients to him.

Selling Addicts for Cash in California: Rehab Boss Busted for $2.9 Million Kickback Scheme

A rehab operator in California has been convicted of paying $2.9 million in kickbacks to body brokers who referred patients to his facilities. 🌐 #News #LosAngelesCA #California #Crime

LOS ANGELES, CA – Greed can corrupt even those trusted to help the most vulnerable. In a shocking twist of betrayal, a man entrusted with the care of those battling addiction saw dollar signs where there should have been compassion. Fueled by a hunger for profit, he turned recovery into a cash cow, using desperate patients as pawns in a heartless game of money laundering and shady deals.

The operator of two California rehab centers was found guilty of paying nearly $2.9 million in illegal kickbacks to “body brokers.” These brokers were responsible for steering patients to his facilities in exchange for large sums of money, a federal jury concluded on Wednesday. The very people who sought help found themselves trapped in a system designed to exploit them for every insurance dollar they were worth.

The case centered around Casey Mahoney, 48, who ran Healing Path Detox LLC in Huntington Beach and Get Real Recovery Inc. in San Juan Capistrano. Prosecutors revealed that between October 2018 and December 2020, Mahoney funneled millions of dollars to brokers who recruited patients based on their insurance coverage.

Sham Contracts to Hide Illegal Payments

To avoid detection, Mahoney set up fake contracts with the body brokers. These agreements claimed to offer fixed payments for services unrelated to patient referrals. In reality, the payments depended on the insurance benefits the patients brought in and the duration of their treatment.

In a particularly troubling detail, some brokers paid patients in cash, which they used to purchase drugs, luring them into attending Mahoney’s rehab facilities. The court also heard that Mahoney laundered his illegal earnings by paying a broker’s mother for fake consulting services.

Jack and Kitty Norton from JackAndKitty.com on YouTube

Sentencing to Follow in 2025

Mahoney is set to be sentenced on January 17, 2025. He faces a range of charges, including conspiracy, illegal remuneration, and money laundering. The penalties for these crimes are severe, with potential sentences ranging from five to 20 years behind bars.

But while Mahoney waits for his day of reckoning, the damage is already done. His greed turned a system meant to heal into a machine of exploitation, fueling addiction instead of fighting it. The broken lives left in his wake stand as a grim reminder that, for some, even the most vulnerable are just a price tag waiting to be cashed in.

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4 Comments

  1. The above article seems to cover a not unconnon illegal, criminal practice for profit. Hope there are investigative agencies monitoring these activities regularly.

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