In 2018, David Johnson, who was the owner of Southern California detox was charged with 30 counts of insurance fraud. He pled guilty but tells of a different story.
Prosecutors claimed that David Johnson had illegally double-billed over 90 Health Net policies and pocketed over $250,000 before he was discovered.
The FBI revealed evidence showing that Southern California Detox’s address as the address for the patients, and allegedly paid the initial premiums for 62% of the policyholders using his personal credit card.
Health Net would not have paid the claims if they had been aware of the treatment center’s cost waiving practices. The insurance provider requires all patients to pay 50% of their deductible before the insurance kicks in towards out of network providers.