Federal prosecutors charge 15 in Los Angeles health care cases

Federal prosecutors announced charges against 15 people in multiple Los Angeles-area health care cases alleging more than $1.8 billion in fraudulent claims, and authorities reported that eight defendants were arrested on October 22. The Justice Department said the cases involve claims to public programs and private insurers. The allegations have not been proven in court, and the aggregate figures describe claimed or intended losses, not confirmed payments or losses. The largest alleged scheme involved more than $1.6 billion in insurance billings for substance-abuse treatment that prosecutors say was sham or unnecessary. According to charging documents, David Young and his son Nathan Young controlled treatment companies and directed recruiters to seek vulnerable people, including people experiencing homelessness or poverty. Prosecutors allege recruiters offered travel, housing, money and drugs to bring people to facilities, where patients were moved between programs to continue billing. The indictment also alleges that some patients were drugged if they tried to leave, while employees were told to coach patients to report symptoms or to bill for therapy that patients did not...