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How Do You Keep a Rehab Business Booming? Keep the Patients Addicted.

California rehab operators allegedly supplied patients with illegal drugs to keep billing their insurers. Their network collected over $210 million.

Neil Zhu's avatar
Neil Zhu
Oct 26, 2026
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People go to rehab because they want their lives back. Federal prosecutors say a California treatment network supplied some of those people with drugs so the business could keep collecting insurance money.

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Nathan Young, 39, and his father, David Young, 71, face federal charges over a network of purported addiction treatment facilities. Between 2020 and 2026, prosecutors allege, the network submitted more than $1.6 billion in fraudulent claims and received over $210 million. The accusations include providing illegal drugs to maintain addiction, fabricating treatment, and recycling patients through facilities. The case has not yet gone to trial.

That is a hell of a recovery plan.

Keep the beds full

According to the Justice Department, recruiters known as “body brokers” targeted people experiencing homelessness, poverty, and addiction. Free flights, hous…

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