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Rehab Racket Part 1: CNN Investigates Shady Drug Rehab Programs

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"Rehab Racket,” a one-year investigation created by CNN and The Center for Investigative Reporting uncovers widespread fraud in taxpayer-funded drug rehab programs in California. Rehab Racket started Monday night on AC360° at 8 and 10 p.m. ET on CNN. 

Drug Rehab Racket: George Ilouno

Drew Griffin, CNN Reporter, starts to confront multiple government funded drug rehab programs and those in charge – including that of George Ilouno, who is facing felony charges for billing the state of California for clients that didn’t even exist. For those clients that did exist, Ilouno would pay patients $5.00 for each time they checked in for group therapy. Ilouno was then charging the state of California's Drug Medi-Cal program between $28.00 and $61.00 per client. Clients were using that money to get high, which was why many of them kept going back.

After the interview with CNN, George Ilouno and three other employees at GB Medical Services drug rehab were charged with grand theft in connection with more than two thousand phony bills charged. On July 1st of this year, the clinic shut down without explanation.

This goes to show that we can’t believe everything we see or hear about facilities. Up until this point, many people were unaware of the scandals happening at GB Medical Services and nobody was speaking out about the horrors surrounding the care there. Why would addicts or alcoholics talk bad about the very facility that is paying them to attend? It just goes to show that when searching out care you have to go deeper than what you just find on the internet. Great resources like the BBB and accreditation programs will help ensure your trust in a drug rehab program.

Drug Rehab Racket: Alexander Ferdman

As the investigation went further, CNN and the Center for Investigating Reporting reviewed thousands of records in California’s Drug Medi-Cal Program.  What they found might shock you. In the last two fiscal years, $94,005,258 was spent on drug rehab programs that showed questionable billing practices or signs of fraud.

Alexander Ferdman, convicted of insurance fraud in the state of Texas, was running one of these drug rehabs in CA. Even though convicted felons are barred from operating a drug rehab, Fredman owns and operates Able Family Support and pulls in around $180,000 a year. In 2011 there were reports of fraudulent practices, and yet Fredman was still allowed to expand his practice without further investigation into his background or his drug rehab. Even former supervisor, Joy Jarfors, for  Medi-Cal claims the system is riddled with fraudulant practices. California is now declaring that they will be doing a state-wide crack down on drug rehabs.

Find A Real Drug Rehab

Finding a drug rehab program can be an overwhelming experience when you are seeking out one in desperation and don’t have all the facts to help you locate the best options. Even if you are attending a government funded drug rehab program, you should know about the facility you are receiving your care from. There are plenty of safe and structured drug rehab programs to choose from, you just need to be equipped with the facts on how to locate the best option for you, or your loved one. Here is a simple quick guide in locating a drug rehab program.

Continue on in the investigation in Rehab Racket Part 2.

Rehab Racket CNN Video Series: Watch Now!

Part 1

Part 2

Part 3

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