CNN AC360: Widespread Fraud in CA Rehab Industry

Last week, CNN’s Anderson Cooper and Drew Griffin reported on an investigation into California’s drug rehabilitation industry as part of the “Keeping them Honest” reports. What they found is shocking. Not only is there $94 million in government funds going to ‘clinics’ with questionable practices or evidence of flat-out fraud, but the California agency in charge of regulating these businesses did nothing about the fraud until the CNN report was coming out. This $94 million wasn’t a rounding error, it’s half, 50%, of the public rehab funding budget and this fraud still went ‘unnoticed.’

I could rant on-and-on about this subject, about how many of these businesses are run by ‘former’ addicts and even some that have already been convicted of fraud, but this series really says it all much better than I can:

AC360 Exclusive: Rehab Racket Part 1

AC360 Exclusive: Rehab Racket Part 2

AC360 Exclusive: Rehab Racket Part 3

AC360 Exclusive: Rehab Racket Update

On the cannabis front, lets not forget that rehabbers reap massive profits on this rigged prohibition system and some of this blood money is used against us during election time, like we saw on Amendment 64 from this gem of a rehabber.

I’d like to thank Anderson Cooper, Drew Griffin, the Center for Investigative Reporting and everyone else involved in this investigative report. Not only did it expose fraud in an industry that’s supposed to help people, but they exposed the complacency of government officials in charge of protecting taxpayers from this kind of fraud and waste.