Rehab Charged With Providing Illegal Drugs to Addicts in Grim Scam

Local treatment center owners Nathan Young, 39, and his father David Young, 71, are accused of running a fraudulent scheme in Southern California according to prosecutors. They allegedly lured recovering addicts with illegal drugs to keep profiting from health insurers who paid for their treatments. From 2020 to 2026, the father-son duo submitted over $1.6 billion in claims, generating more than $210 million in profits.

Assistant Attorney General Colin McDonald called this the "largest sober home fraud scheme" ever prosecuted by the Justice Department. To maintain a steady flow of patients, "body brokers" were reportedly paid to find drug addicts in neighboring states, promising them treatment at the California rehab center. Once admitted, patients often signed up for private insurance plans with high reimbursement rates.

The Youngs allegedly provided illegal kickbacks to addicts, including money, free flights, accommodations, and more drugs. After milking an insurance plan dry, the Youngs reportedly sent patients back to the streets without any support. This practice, known as "patient dumping" or "curbing," left many addicts back on the streets of California and Los Angeles.

Some patients were even encouraged to exaggerate their substance addictions to continue receiving benefits. Both Youngs were arrested last week and charged with healthcare fraud and violating an anti-kickback statute.