LOS ANGELES – Two executives at a company that offered substance abuse counseling at facilities in Lancaster, Long Beach and Carson were arrested Tuesday on nearly two dozen federal charges alleging they defrauded Medi-Cal by billing at least $2 million for ineligible services.
The defendants were taken into custody without incident, according to the U.S. Attorney’s Office.
A 23-count indictment returned by a Los Angeles federal grand jury last Thursday charges both women with 21 counts of health care fraud and two counts of aggravated identity theft stemming from the scheme that allegedly ran from 2009 through 2015.
The charges primarily involve services provided to girls residing at group homes in Lancaster, Long Beach and Carson — facilities where the defendants were not authorized to provide counseling. More than $500,000 in false and fraudulent claims for group and individual substance abuse counseling services was submitted and more than $260,000 on those claims was paid, according to the U.S. Attorney’s Office.
If convicted as charged, the defendants each would face up to 10 years in prison for each of the 21 health care fraud charges. Additionally, there is a two-year mandatory sentence associated with each of the aggravated identity theft counts, prosecutors said.
Editor’s note: This story has been updated since it was published.