LOS ANGELES (AP) - 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 on Thursday 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 Thursday.
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.
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