SANTA ANA, California— Over the previous 10 months, the Department of Justice has actually submitted criminal charges versus 10 accuseds– 4 of whom were nabbed today– for kickback schemes at substance abuse treatment centers in Orange County.
The accuseds in these cases charged as an outcome of The Sober Residences Effort are substance abuse facility owners and patient employers who apparently, to name a few things, offered kickback payments for the recommendation of patients to substance abuse treatment centers, recovery houses or labs. These facility owners apparently designated a worth to patients depending on the type of insurance the patients had, and then paid patient employers kickbacks for each patient the employers referred to their addiction treatment centers. The employers apparently got repeating payments for every month the patients continued to receive supposed services from the centers.
“Driven by greed, deceitful operators of substance abuse treatment centers have actually gotten into Southern California, however a union of police entities have actually reacted powerfully,” stated U.S. Lawyer Tracy L. Wilkison. “These corrupt people pay prohibited kickbacks to get guaranteed patients whose health plans pay generous benefits meant to cover genuine treatments and tests. While numerous recovery centers use much-needed services to addicts, those targeted in this sweep capitalize of our country’s opioid crisis by sustaining a patient- offering network more interested in producing earnings than providing help to susceptible people.”
“These cases show the ongoing efforts of the Department of Justice to combat scams by substance abuse treatment centers and patient employers,” stated Assistant Chief law officer Kenneth A. Polite Jr. of the Justice Department’s Wrongdoer Department. “These schemes capitalize of susceptible members of our society– addiction patients looking forhelp These cases highlight, the federal government’s dedication to safeguarding patients and prosecuting those who attempt to victimize them.”
“Deceptive kickbacks in the substance abuse treatment field develop perverse rewards for patient employers that frequently leave addicts in a harmful cycle of drug use and treatment,” stated Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Workplace. “The FBI is devoted to combating scams in the healthcare system so that those having a hard time with addiction can discover genuine care and motivates patients and workers to report kickback schemes.”
” It is unconscionable when owners and operators of substance abuse centers abuse the systems developed to help patients recuperate from addiction,” stated Unique Representative in Charge Amy K. Parker of the Workplace of Worker Management Workplace of the Inspector General (OPM-OIG). “We are incredibly happy of our devoted staff and federal police partner’s dedication to pursuing incorrect and prohibited conduct that puts susceptible health care customers at threat.”
“The suspects in this case particularly targeted susceptible people in recovery and offered them as a product with no issue for their health or wellness,” stated California Insurance Commissioner Ricardo Lara. “Getting kickbacks for patient recommendations threatens lives and has no location in our health care system.”
Cases charged as an outcome of The Sober Residences Effort
- Nick Roshdieh, 51, of Aliso Viejo, and Vincent Bindi, 66, of Laguna Nigel, who owned Crest Recovery LLC (dba Truvida Recovery), were detained today on charges consisted of in an indictment that declare conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and paying kickbacks for recommendations to clinical treatment centers.
- Donald Vawter, 30, of Rancho Santa Margarita, an worker of Truvida, was likewise nabbed today and was charged in the indictment with conspiring to pay and receive kickbacks for recommendations to a substance abuse treatment facility and paying kickbacks for recommendations to a substance abuse treatment facility.
- Michael Hislop, 56, of Boston, Massachusetts, a patient employer, likewise was nabbed today pursuant to charges in the exact same indictment that declare conspiracy to deal and pay kickbacks for recommendations to a substance abuse treatment facility and getting kickbacks for recommendations to a substance abuse treatment facility.
If founded guilty, Roshdieh and Bindi would deal with an optimum overall charge of 65 years in jail, and Vawter and Hislop would deal with an optimum overall charge of 35 years in jail.
This case is being prosecuted by Assistant U.S. Lawyer Gina Kong of the Santa Ana Branch Workplace and Trial Lawyer Alexandra Michael of the Los Angeles Strike Force.
- Casey Mahoney, 45, of Los Angeles, and Joseph Parkinson, 32, previously of Costa Mesa, were prosecuted in October in a multimillion-dollar addiction treatment kickback plan. According to court files, Mahoney controlled Recovering Course Detox LLC and Get Genuine Recovery Inc., addiction treatment centers in Orange County, and apparently paid roughly $2.7 million in kickbacks paid to Parkinson and other patient employers in exchange for addiction treatment patient recommendations.
Mahoney is charged with conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers, paying kickbacks for recommendations to clinical treatment centers, and cash laundering for fraudulently moving kickback funds to an account held in the name of a patient broker’s mom. Parkinson, a patient employer, was charged with conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers, getting kickbacks for recommendations to clinical treatment centers, currency structuring, and ownership with intent to disperse fentanyl.
If founded guilty, Mahoney would deal with an optimum overall charge of 35 years in jail, and Parkinson would deal with an optimum overall charge of 165 years in jail.
- Darius Moore, 28, previously of Santa Ana, was charged by grievance on March 29, and later on by indictment on April 28, with conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and getting kickbacks for recommendations to clinical treatment centers. According to court files, Moore, a patient employer, referred patients to several addiction treatment centers in Orange County in exchange for kickback payments from the centers. Moore apparently got not less than $488,500 in kickbacks in exchange for his recommendation of patients for supposed addiction treatment services.
Moore pleaded guilty on December 10 to one count of conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and one count of getting kickbacks for recommendations to clinical treatment centers. He is set up to be sentenced on May 13, 2022, at which time he will deal with a statutory optimum charge of 15 years in jail.
- Adrian Gonzalez, 37, of Laguna Hills, was charged by information on June 25, with paying kickbacks for recommendations to clinical treatment centers. According to court files, Gonzalez controlled Stone Ridge Recovery Inc. and Landmark Recovery LLC, addiction treatment centers in Orange County, and paid at least $1,080,000 in kickbacks to patient employers for the recommendation of addiction treatment patients to Gonzalez’s centers.
Gonzalez pleaded guilty on August 6 to paying kickbacks for recommendations to clinical treatment centers. He is set up to be sentenced on Jan. 28, 2022, at which time he will deal with an optimum charge of ten years in jail.
- Dorian Ballough, 30, previously of Costa Mesa, was charged by information on July 30 with conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and getting kickbacks for recommendations to clinical treatment centers. According to court files, Ballough served as a patient employer for several addiction treatment centers in Orange County, for which Ballough was paid at least $1.8 million in kickbacks in exchange for his recommendation of patients for supposed addiction treatment services.
Ballough pleaded guilty on November 12 to one count of conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and one count of getting kickbacks for recommendations to clinical treatment centers. He is set up to be sentenced on April 8, 2022, and deals with an optimum overall charge of 15 years in jail.
- Kyle Reed, 29, previously of Huntington Beach, was charged by information on July 30, with conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and getting kickbacks for recommendations to clinical treatment centers. According to court files, the charges relate to Reed’s function as a patient employer for several addiction treatment centers in Orange County, for which Reed was paid at least $604,474 in kickbacks in exchange for his recommendation of patients for supposed addiction treatment services.
Reed pleaded guilty on November 19 to one count of conspiracy to pay and receive kickbacks for recommendations to clinical treatment centers and one count of getting kickbacks for recommendations to clinical treatment centers. He is set up to be sentenced on Might 6, 2022, and deals with an optimum overall charge of 15 years in jail.
All of the cases, with the exception of the Truvida-related matter, are being prosecuted by Assistant U.S. Lawyer Benjamin Barron, Chief of the Santa Ana Branch Workplace, and Trial Lawyer Justin Givens of the Los Angeles Strike Force.
A federal district court judge will figure out any sentence for the accuseds after thinking about the U.S. Sentencing Standards and other statutory elements.
The Sober Residences Effort in Southern California is led by the United States Lawyer’s Workplace and the Health Care Scams System’s Los Angeles Strike Force of the Wrongdoer Department’s Scams Area. The effort was collaborated by Assistant United States Lawyer Benjamin Barron and Assistant Chief Niall O’Donnell of the Health Care Scams System.
The FBI’s Los Angeles Field Workplace, OPM-OIG, and the California Department of Insurance are examining the cases revealed today.
An indictment consists of accusations, and all accuseds are presumed innocent till tested guilty beyond an affordable doubt in a court of law.