Dad-Son Pair Accused of Healthcare Fraud Scheme
Father and son accused of drugging patients and billing insurance for fraud, totaling $1.6 billion.
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A father and son operating drug and sober care facilities in Los Angeles are accused of orchestrating a massive healthcare fraud scheme, drugging vulnerable patients and keeping them on insurance plans to generate profits. David Young, 71, and his son Nathan, 39, are facing charges of egregious healthcare fraud, including collaborating with ‘body brokers’ to target homeless individuals in need of sobriety treatment and preventing them from leaving their facilities.
Fraudulent Practices and Insurance Billing
The federal government indicted the Youngs as part of a collective 15 defendants in what the Department of Justice (DOJ) called the ‘largest substance abuse treatment fraud scheme’ it has ever prosecuted. According to the criminal complaint, the Youngs created policies to drug patients, cut off communication with family, and physically block them from leaving, to continue billing insurance plans.
A powerpoint presentation from David Young, dated October 17, 2023, allegedly instructed staff to ‘have doctors prescribe something to knock the client out’ when patients tried to leave detox. From May 2020 to May 2026, the Youngs submitted $1.6 billion in insurance claims and received over $210 million in payments, billing for ‘non-existent and woefully inadequate ‘therapy’ sessions.’
Cooperating Witness and Text Messages
A cooperating witness employed by the Youngs told the FBI that the duo instructed staff to transfer patients to detox facilities ‘regardless of whether it was medically necessary.’ The witness also sent a text message to ‘Pablo’ (Nathan) stating that a patient was ‘freaking out’ and wanted to ‘go back to sober living.’ ‘I would do edibles offsite,’ ‘Pablo’ advised, suggesting that if the patient left the premises, it would be a ‘loop hole.’
Additional Fraud and Legal Proceedings
Prosecutors allege the Youngs fraudulently enrolled individuals in new insurance policies they were not eligible for to retain reimbursements. Employees allegedly lured prospective patients to Southern California with free flights, money, apartments, hotel stays, cars, gift cards, marijuana, and other prescription medications. The Youngs each posted $4 million bail, surrendered their passports, and agreed to home detention, with a pending hearing set for November 5.
Source: Daily Caller
