SANTA ANA – Over the past 10 months, the Department of Justice has filed criminal charges against 10 defendants – four of whom were taken into custody Dec. 16 – for kickback schemes at substance abuse treatment facilities in Orange County.
The defendants in these cases charged as a result of The Sober Homes Initiative are substance abuse facility owners and patient recruiters who allegedly, among other things, provided kickback payments for the referral of patients to substance abuse treatment facilities, recovery homes or laboratories. These facility owners allegedly assigned a value to patients depending on the type of insurance the patients had, and then paid patient recruiters kickbacks for each patient the recruiters referred to their addiction treatment facilities. The recruiters allegedly received recurring payments for each month the patients continued to receive purported services from the facilities.
Cases charged as a result of The Sober Homes Initiative
Donald Vawter, 30, of Rancho Santa Margarita, an employee of Truvida, was also taken into custody today and was charged in the indictment with conspiring to pay and receive kickbacks for referrals to a substance abuse treatment facility and paying kickbacks for referrals to a substance abuse treatment facility.
Michael Hislop, 56, of Boston, Massachusetts, a patient recruiter, also was taken into custody today pursuant to charges in the same indictment that allege conspiracy to offer and pay kickbacks for referrals to a substance abuse treatment facility and receiving kickbacks for referrals to a substance abuse treatment facility.
If convicted, Roshdieh and Bindi would face a maximum total penalty of 65 years in prison, and Vawter and Hislop would face a maximum total penalty of 35 years in prison.
This case is being prosecuted by Assistant U.S. Attorney Gina Kong of the Santa Ana Branch Office and Trial Attorney Alexandra Michael of the Los Angeles Strike Force.
Mahoney is charged with conspiracy to pay and receive kickbacks for referrals to clinical treatment facilities, paying kickbacks for referrals to clinical treatment facilities, and money laundering for fraudulently transferring kickback funds to an account held in the name of a patient broker’s mother. Parkinson, a patient recruiter, was charged with conspiracy to pay and receive kickbacks for referrals to clinical treatment facilities, receiving kickbacks for referrals to clinical treatment facilities, currency structuring, and possession with intent to distribute fentanyl.
If convicted, Mahoney would face a maximum total penalty of 35 years in prison, and Parkinson would face a maximum total penalty of 165 years in prison.
Moore pleaded guilty on Dec. 10 to one count of conspiracy to pay and receive kickbacks for referrals to clinical treatment facilities and one count of receiving kickbacks for referrals to clinical treatment facilities. He is scheduled to be sentenced on May 13, 2022, at which time he will face a statutory maximum penalty of 15 years in prison.
Gonzalez pleaded guilty on Aug. 6 to paying kickbacks for referrals to clinical treatment facilities. He is scheduled to be sentenced on Jan. 28, 2022, at which time he will face a maximum penalty of 10 years in prison.
Ballough pleaded guilty on Nov. 12 to one count of conspiracy to pay and receive kickbacks for referrals to clinical treatment facilities and one count of receiving kickbacks for referrals to clinical treatment facilities. He is scheduled to be sentenced on April 8, 2022, and faces a maximum total penalty of 15 years in prison.
Reed pleaded guilty on Nov. 19 to one count of conspiracy to pay and receive kickbacks for referrals to clinical treatment facilities and one count of receiving kickbacks for referrals to clinical treatment facilities. He is scheduled to be sentenced on May 6, 2022, and faces a maximum total penalty of 15 years in prison.
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