The DOJ announced that Casey Mahoney, of Los Angeles, California, has been convicted by a federal jury of one count of conspiracy to solicit, receive, pay, or offer illegal remunerations for patient referrals, seven counts of illegal remunerations for patient referrals, and three counts of money laundering. Mahoney’s convictions stem from a kickback scheme to refer patients to his detox center.
According to the government, Mahoney owned two addiction treatment facilities in Orange County, California— Healing Path Detox LLC and Get Real Recovery Inc. Mahoney paid illegal kickbacks to individuals known as “body brokers” to refer patients to his treatment facilities. Evidence presented at trial showed that Mahoney paid approximately $2.9 million in kickbacks to body brokers who in turn paid patients thousands of dollars to receive treatment at Mahoney’s facilities. Many of Mahoney’s patients struggled with opioid addictions and used the money from body brokers to pay for drugs. Mahoney and the body-brokers entered sham agreements where payment was based on the amount patients’ insurance reimbursed, and the number of days Mahoney could bill for patients’ treatment. In an attempt to cover up illegal kickbacks, the sham contracts between Mahoney and the body brokers alleged that payment was not based on volume or value and the price was fixed. Mahoney also paid the mother of one of the body brokers “consulting fees” to launder the proceeds of the foregoing scheme.
Mahoney now faces up to five years on the conspiracy conviction, ten years on each illegal renumeration conviction, and twenty years on each money laundering conviction. Mahoney will be sentenced in January of 2025.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today.