California Audit to Check on Fraud in Drug Rehab Programs


California legislators have ordered an audit to examine the extent of fraud in the state's taxpayer-funded drug rehabilitation program and to assess why measures weren't taken to stop it sooner. The review was prompted by Rehab Racket, a yearlong investigation by The Center for Investigative Reporting and CNN that found widespread forgery and fabrication at alcohol and drug counseling clinics, as well as wide gaps in state and county oversight.

Sen. Ted Lieu of Los Angeles County and Assemblyman Adam Gray of Merced jointly called for the review of the Medi-Cal-funded program for the poor. “Ineffective oversight and fraud in the system siphons funds away from legitimate clinics, wastes taxpayer dollars and undercuts the public support for the program,” Lieu told the Joint Legislative Audit Committee. The Los Angeles County Board of Supervisors unanimously approved its own independent review of the troubled program.

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