Former operators of a Southern California sober-living operation have been charged with fraud for allegedly keeping hundreds of people in what the state insurance commissioner calls a “never-ending cycle of treatment, addiction and fraud.”
The Insurance Department announced the arrests of Chris Bathum, former owner of Community Recovery, and executive Kirsten Wallace.
Separately, Bathum was arrested on suspicion of sexually assaulting former clients.
Community Recovery, now called Commonwealth Global, operates more than a dozen sober-living homes and outpatient facilities in Los Angeles and Orange counties. Fifteen were raided by investigators last week.
Prosecutors say the operators stole identities of drug- and alcohol-addicted people, bought health insurance policies without their knowledge and submitted $176 million in phony bills.
It wasn’t immediately known if they have attorneys.
Topics California Fraud
Was this article valuable?
Here are more articles you may enjoy.
Farmers Insurance Plans Historic, Rapid Expansion of Agency Force 
Viewpoint: How Will the Middle East War Affect the Insurance Sector? 
Depreciation on ACV Is OK, Court Says in Knocking Down Class Action vs. Cincinnati 
Axios Software Tool Used by Millions Compromised in Hack 
