Ethics in Treatment

FTC Hits R360 and its Owner With $3.8 Million Civil Penalty Judgment for Preying on People Seeking Treatment for Addiction

Posted on May 19, 2022May 19, 2022 by Gregory Gooden

FTC Hits R360 and its Owner With $3.8 Million Civil Penalty Judgment for Preying on People Seeking Treatment for Addiction
The Federal Trade Commission has taken action against R360 LLC and its owner, Steven Doumar, for deceiving people seeking help for addiction about the evaluation and selection criteria for the treatment centers in their network. The case is the FTC’s first under the Opioid Addiction Recovery Fraud Prevention Act of 2018.

Two Women Admit Roles in Multi-State Recovery Home Patient Brokering Scheme

Posted on May 11, 2022May 11, 2022 by Gregory Gooden

Two Women Admit Roles in Multi-State Recovery Home Patient Brokering Scheme
NEWARK, N.J. – A woman from California and a woman from Arkansas today admitted their roles in a multi-state patient brokering scheme in which they paid referral fees from their rehabilitation centers in exchange for patient referrals, Attorney for the United States Vikas Khanna announced. Lauren B.

Medical Director Convicted in $110 Million Addiction Treatment Fraud Scheme

Posted on February 11, 2022May 11, 2022 by Gregory Gooden

Medical Director Convicted in $110 Million Addiction Treatment Fraud Scheme
A federal jury convicted a Florida doctor yesterday in the Southern District of Florida for a health care fraud scheme that billed private health insurance companies approximately $110 million for addiction treatment services that were not medically necessary. This is the second trial conviction to arise out of the Justice Department’s Sober Homes Initiative.

South Florida Addiction Treatment Facility Operators Convicted in $112 Million Addiction Treatment Fraud Scheme

Posted on November 8, 2021November 8, 2021 by Gregory Gooden

South Florida Addiction Treatment Facility Operators Convicted in $112 Million Addiction Treatment Fraud Scheme
After a seven-week trial, a federal jury in the Southern District of Florida convicted two operators of two South Florida addiction treatment facilities for fraudulently billing approximately $112 million for services that were never provided or were medically unnecessary, and for paying kickbacks to patients through patient recruiters, and receiving kickbacks from testing laboratories.

Watch out for shady marketing practices

Posted on June 11, 2021June 11, 2021 by Gregory Gooden

Consumer Alert: Watch out for marketers posing as neutral, unbiased addiction treatment resources
Free, comprehensive addiction treatment resources available at findtreatment.gov OLYMPIA – In light of his office’s investigation into an addiction treatment marketing company, Attorney General Bob Ferguson is urging Washingtonians to be aware of marketing websites that pose as neutral sources of information about addiction treatment facilities.

From up to 62 years in jail to zero; plea deal in body brokering case raises anger and questions

Posted on May 18, 2021May 18, 2021 by Gregory Gooden

From up to 62 years in prison to zero; plea deal in body brokering case raises anger and questions
Dylan Walker faced up to 62 years behind bars, but won’t serve a single day in jail after pleading guilty to 62 counts of patient brokering. Walker also won’t pick up one bit of trash along the freeway, or spoon one ladle of soup in community service after signing a May 6 plea deal that reduced the felony charges against him to misdemeanors.

A Severe Ethical Crisis

Posted on February 15, 2021February 15, 2021 by Gregory Gooden

As Addiction Deaths Surge, Profit-Driven Rehab Industry Faces ‘Severe Ethical Crisis’
As the nation’s addiction crisis deepened, Tamara Beetham, who studies health policy at Yale University, set out to answer a simple question: What happens when people try to get help? Her first step was to create a kind of undercover identity – a 26-year-old, using heroin daily.

Mass.gov notice on avoidance of treatment scams

Posted on October 23, 2020October 23, 2020 by Gregory Gooden

Avoiding addiction treatment scams
The Attorney General’s Office has received multiple reports of attempts to recruit Massachusetts residents with substance use disorder to travel to so-called “treatment centers” in Arizona, California, or Florida. These recruiters often use texts or social media to recruit patients. The recruiters may offer to pay for airfare and health insurance to cover the costs of treatment.

Big bust: 52 million dollar scheme.

Posted on July 4, 2020July 4, 2020 by Gregory Gooden

‘Real-life Frankensteins’: Doctor, 5 others charged in $52M scheme involving sober living patients undergoing surgery, OCDA says
A Beverly Hills surgeon, his girlfriend and four others were charged in connection with an elaborate scheme, paying patients at Southern California sober living homes to undergo medically unnecessary surgeries, medical testing and other procedures to bilk insurance companies out of nearly $52 million, officials said Friday.

The Florida Shuffle

Posted on March 3, 2020March 3, 2020 by Gregory Gooden

She wanted addiction treatment. She ended up in the relapse capital of America.
Brianna Jaynes wanted help for her addiction to painkillers and heroin. She ended up trapped in a cycle that focused on running up big insurance bills and landing profitable kickbacks – not addressing her drug problem. In 2015, when Jaynes was 20, she started her rehab search by calling a number she found through Google.