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The Justice Department accused the father-son team of the Los Angeles Drug Rehabilitation Center of using human brokers to lure vulnerable people to California, and through false treatment and insurance fraud, the total amount involved in the case reached 1.6 billion yuan.
The Ministry of Justice prosecuted on the 22ndlos angeles Drug rehabilitation tycoon David Young, 71, and his son Nathan Young, 39, allegedly offered free flights, groceries and other benefits to at least 6,000 homeless drug addicts, many of whom were from out of state.California Dozens of drug rehabilitation centres. The father and son hired a “body broker” to lure these drug addicts to the California Drug Rehabilitation Center, a drug treatment program involving a total value of up to 1.6 billion yuan. The Justice Department said it was the largest fraud case ever.
The defendants, Nathan Young, also known as “Pablo”, his father David Young, also known as “Sancho Lopez”, and Honey Phipps, 42, and Cody Phipps, 36, of Texas, are accused of carrying out a multi-year fraud scheme. The indictment alleges that David and Nathan controlled dozens of nominal substance abuse treatment companies in the Los Angeles area and across the country.
He instructed “population brokers”, including Haney and Cody, to target the homeless, the poor, and people attending addiction support groups. These potential patients are lured with the promise of free flights, cash, apartment stays, hotel stays, cars, gift cards, marijuana, cigarettes, controlled substances (including illicit drugs), and physician discretionary drugs.Southern California .
The defendants specifically sought out those with the highest claims from Medicare, often fraudulently enrolling ineligible people into new coverage to ensure they would receive maximum reimbursement for the fraudulent treatments.
Once in California, most patients discover that many of the promises from fraudulent institutions are empty. Some “premium” patients with high-claims insurance policies receive lavish treatment, such as hotel stays, private apartments, and expensive dinners; While “non-premium” patients are housed in overcrowded, dirty, and dilapidated housing, often referred to as “trap houses.” Regardless of whether treatment was medically necessary or actually provided, the Youngs cycled patients between facilities in order to continue billing insurance companies. To prevent patients from going out, Yangs and Sons also instructed patients who had given drugs to “knock them out” if they tried to go out.
The Youngs also administered medications to patients, isolated them from family members, prevented them from accessing personal belongings, and prevented them from leaving the facility in order to continue billing insurance companies. For example, when he learned that a senior patient wanted to leave the detox facility to smoke marijuana, Nathan directed that the patient’s desired items be made available outside the detox facility to maintain the patient’s well-being.
The fraudulent associates also instructed employees to fabricate symptoms to qualify patients for detoxification services. In some cases, policies instituted by the Youngs resulted in patients even being encouraged to use drugs or alcohol in order to be more eligible for “treatment.” After the patient completed detox, the so-called substance abuse “treatment” provided by the Yangs and their sons was actually online Zoom remote meetings with over a hundred people at the same time. The patient was not required to participate in any way other than turning on the camera. Patients were told they could “lie on the beach” rather than participate in treatment, which would be reimbursed by insurance companies.
Summary FAQ
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The Justice Department indicted 71-year-old David Young and his 39-year-old son Nathan Young, accusing them of long-term manipulation of multiple drug treatment facilities in Los Angeles in a fraud that totaled up to 1.6 billion yuan, making it one of the largest cases ever seen by the Justice Department.
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Father and son used human brokers to lure homeless and drug-addicted people to Southern California with free air tickets, cash, housing, vehicles, gift cards and even drugs and prescription drugs. They then bounced around between different agencies and requested payment from insurance companies.
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Prosecutors reported that most of the purported treatments lacked medical necessity, and some were simply Zoom meetings with no more than a hundred people online at the same time, in which patients were barely required to participate; High-paid claimants enjoyed hotels and apartments, while others were crammed into filthy drug dens.
