Los Angeles/ Crime & Emergencies
AI Assisted Icon
Published on September 13, 2024
Los Angeles Addiction Treatment Operator Convicted of Paying Kickbacks in Multi-Million Dollar SchemeSource: NATO Training Mission-Afghanistan, CC BY-SA 2.0, via Wikimedia Commons

In a significant blow to corrupt practices within the addiction treatment industry, Casey Mahoney, a 48-year-old Los Angeles resident and operator of Healing Path Detox LLC and Get Real Recovery Inc., has been found guilty of engaging in illicit acts to boost his patient numbers, a court has found.

According to the Office of Public Affairs, evidence at the trial indicated that Mahoney paid close to $2.9 million in kickbacks to so-called "body brokers," these brokers would in turn lure patients with cash incentives, an allure that was often spent on drugs, so that these individuals would seek treatment at Mahoney's facilities, promising the patients a better tomorrow while miring them deeper in the ways of an old, damning dance with dependency.

The scheme was concealed behind falsified contracts, creating an illusion of legality while the kickbacks were based on the volume of referrals and potential insurance payouts, confirmed by trial documents. Mahoney also attempted to cleanse his ill-gotten gains through transactions made to appear as consulting fees to a broker’s mother, mastering deceit with the sleight of hand that only a practiced charlatan could, in defiance of the trust we place in those purportedly dedicated to healing.

Now convicted of one count of conspiracy alongside multiple counts of both illegal remunerations and money laundering, Mahoney is facing a stern gaze from Lady Justice who may impose a prison sentence reaching up to decades. His scheduled sentencing is on January 17, 2025, as per the Office of Public Affairs.

This case was invested and brought forward by various players including the FBI Los Angeles Field Office and the IRS-CI Los Angeles Field Office, with notable support from the California Department of Insurance.