state of california, either. >> and who are you? >> i'm drew griffin with cnn. your former employees say you're billing for services you're not providing. then there's this man, alexander ferdnand. it hasn't stopped him from coming to california, setting up a drug rehab clinic, and billing taxpayers. even though felons are barred from running drug medi-cal systems. how can a guy like you be operating a drug rehab program here in california? you were convicted in texas -- >> i was convicted but it's not what it seems. >> reporter: in the last two fiscal years, taxpayers spent nearly $186 million, supposedly treating drug and alcohol patients in california.