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3 convicted in $20M California drug treatment fraud scheme

Justice (FILE)
Posted at 8:39 PM, May 09, 2022
and last updated 2022-05-09 23:39:02-04

LOS ANGELES (AP) — Three people have been convicted in scheme to bilk California’s Medi-Cal system out of nearly $20 million by submitting phony claims for drug and alcohol treatment for school students.

Monday's convictions make 19 people convicted in the scheme, which involved a Long Beach-based non-profit called Atlantic Recovery Services.

Federal prosecutors say the organization provided substance abuse treatment for local high school and middle school students but submitted bills for students who didn't need help and for services it never provided.

The former president and CEO, Richard Ciampa, was sentenced last year to seven years in prison for health care fraud.