Insurers milked for millions as part of alleged rehab fraud that lured addicts to California

A California rehab mogul allegedly kept the insurance cash rolling by supplying recovering addicts with illegal drugs and coaching them to fake addictions, federal prosecutors say in a sprawling $1.6 billion fraud case that has already drawn scrutiny from insurers including Aetna.Nathan Young, 39, known to clients as Pablo, and his father, David Young, 71, were arrested last week after investigators accused them of orchestrating one of the largest alleged sober-home fraud schemes in US history.Facilities associated with the pair submitted more than $1.6 billion in claims to major health insurers between 2020 and 2026, collecting more than $210 million, according to a recently filed criminal complaint.The billings allegedly included “non-existent and woefully inadequate ‘therapy’ sessions.” The biggest news, opinion and culture shaping California right now.

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Never miss a story The case adds a disturbing new chapter to California’s troubled addiction-treatment industry, where prosecutors say operators preyed on vulnerable people, often bringing homeless addicts from across the country to Southern California facilities to cash in on their private insurance policies.According to an FBI affidavit, the Youngs allegedly directed employees and so-called “body brokers” to recruit patients with offers of cash, drugs, free airline tickets and accommodations.Incoming clients were allegedly coached to exaggerate or fabricate substance addictions to qualify for detox services and remain in treatment longer, generating more billable claims.California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedInCalifornia Post Sports Facebook, Instagram, TikTok, YouTube, XCalifornia Post Opinion California Post Newsletters: Sign up here!California Post App: Download here!Home delivery: Sign up here!Page Six...