0 good evening. everyone, part two of our keeping them honest series. rehab racket, clinical operators billing taxpayers for a bundle and how teenagers who don't need rehab at all, they are being recruited to help, as you see, our investigation is getting results. judgment day for private first class bradley manning. he leaked 750,000 classified documents and videos. the question is, how much damage did he really do? and later, believe it or not, $136 million in stolen jewels was only the tip of the iceberg. we'll go inside a heist some are blaming for in cannes from a gang known as the pink panthers. we begin with part two of our series, "rehab racket." shady rehab clinics filing bogus claims for phantom patients. because it involves federal medicaid funding, we are all paying for it, nearly $186 million in state and federal tax dollars over the last two years. the year-long investigation from cnn lays it all out. unscrupulous operators billing the government for bogus clients and getting away with it. in the wake of our reporting, we learned that 29 clinics have been temporarily suspending, cutting them off. and a state senator, who after seeing last night's report, is calling for a full audit of california's program. but first, part two of the investigation. you teenagers say they were roped into the operation. drew griffin tonight, keeping them honest. >> reporter: outside this drug rehab center in southern california, teenagers from a group home are dropped off. but according to former employees of the pomona alcohol and drug recovery center, many of the teens they saw coming here over the years didn't have substance abuse problems at all. a one-year investigation by cnn and the centers for investigative reporting found the drug medical program in california, which cost taxpayers over $6 billion, is ripe with fraud. victoria says she was driven in a van every week with other teens while living in a group home to the health services in riverside, california. >> we used to do drug tests and they would teach us not to do this drug or whatever. >> reporter: but she thought it was strange, because she didn't have a drug problem. >> i told them, why should i be here? i have no drug issue. but i had to go because all the other girls had to go and they couldn't leave me at the hospital by myself. >> reporter: we obtained these document where is she signed her name, and signatures meant money. the more signatures, the more the system reimbursed the clinic. michael mergets remembers the trips, as well. now in college, he says he also was driven in a van, each week with other teens, from a different group home. you never abused alcohol or prescription drugs? >> not at all. >> so all the time you spent there for three years, three years, was a waste of your time and a waste of taxpayer money? >> yes, definitely. >> reporter: that doesn't surprise demara sheera, a former manager with the same operator. she estimated that 30% of the teens didn't have a drug or alcohol issue. so counselors just made them up. >> it took an audit for me to know how deep it was. how keep of fraud was going on there. >> reporter: other whistleblowers blame forward and claimed that they were committing drug/alcohol fraud by labeling teens with fake addictions. they said they didn't have an easy way to prove they were making up addictions. but the county pulled the clinic's funding any way, because so many clients were dropping out. that forced so. cal to shut down. but the other clinic in the county remains open. just last year, a report on pomona drug and alcohol recovery center found serious issues in the program. the operator of both clinics is a man named tim agendu, who said the allegations came from disgruntled ex-employees. he couldn't tell us anything. drew griffin with cnn. >> who are you? >> reporter: i just told you. your former employees say you're billing for services that you're not providing. he soon left without talking to us. if you have nothing to hide, why are you taking off? we found case after case of rehab centers like pomona with a history of problems that are still allowed to keep billing the state. tamera askew is a former counselor, who claims she was told to bill for clients she didn't see. did you have client lists? >> i had a client list, yes. when i first got there, yeah, they gave me about 20 folders, 20 folders of clients that they had. >> reporter: did you ever account for the 20 cases that you had in your folders? >> no, i never could because -- >> reporter: you couldn't find them? >> some were in jail, one was dead. >> reporter: and still a client? >> and still listed as a client. >> reporter: she says she confronted the operator of the clinic. >> i said look, i don't know how you want me to bill for clients i don't see or have. and he told you, how do you think these lights are going to get paid? >> reporter: she says he then fired her. would you describe what you've been through as anything more than just throwing away taxpayer's money? >> it is -- yeah, it's just throwing away taxpayer's money. >> reporter: that was in 2009. regulators have found severe deficiencies at pride health services, from 2005 to 2011, including evidence of ghost clients. two years ago, the county uncovered what appeared for fraudulent documentation used for billing. a state auditor urged they be shut down. not only did they stay open, it got even more money. more than $1 million in a year. in its most recent investigation brought you by yet another employee accusing pride of billing for ghost clients, investigators found the allegations unsubstantiated, but found the operation troubling, discovering missing paperwork, signed waivers with no client information and missing treatment plans. despite that poor review, pride is staying open. if the county investigators couldn't find evidence of ghost patients, maybe they should do what we did, go there on wednesday, closed for treatment. we saw no one entering the facility on wednesdays. so we went in ourselves, with hidden cameras. do you have rehab going on today? >> reporter: today is wednesday. there's no group today? >> no. >> reporter: even though it's closed for rehab, pride has been billing for clients on wednesdays, as these records show. including 60 on the day we went in with hidden cameras and found no clients there. he told the county two years ago that pride accepted responsibility for deficiencies. we went looking for him, seen in this police mug shot for an unrelated arrest in 2003. hi, drew griffin with cnn. how are you doing? is godfrey in? >> he's right here. >> reporter: markita jones denied any wrongdoing. we wanted to ask about an investigation we're doing about ghost patients, people signing names, faking signatures and billing the state and the county for treatment that's not happening. do you know anything about that? >> no, i don't. because that's not going on at this office. >> reporter: godfrey has never asked you to sign a form that says all these patients came here and they didn't? >> no, sir, he did not. >> reporter: and you do the counseling yourself? >> yes, i do. >> reporter: as we waited for them to show up, employees inside called police. they told us that the boss was coming and we've been camped out waiting for them to show up. then abruptly, shut down for the day. could he call back and say he's not coming? we never heard from anyone at pride health services again. >> it's just unbelievable. one of the things that's most upsetting is despite repeated times that the county and state know there is's fraud going on, these things just stay open. >> reporter: right. what we're finding is a lack of oversight at a much higher level that we would like to get to the bottom of. the regulators, the inspectors, they are finding the fraud. report after report, they're finding the problems. the problem is, nothing ever happens. and we can't seem to figure out why, who is it in authority that is allowing, even after seeing these reports, that is allowing these clinics to not only stay open but to grow. >> i want to bring in senator ted lew. how concerned are you that auditors have been finding evidence of fraud for years, yet they've not only remained open but increased in value? >> i'm very concerned. a few days ago i talked to my chief of staff about increasing funding to rehabilitation clinics, because i believe they're a vital thing. first, i was surprised how easy it was to commit freud. and second, i became very concerned that not only could i not request more funding, but that if we don't fix this fraud immediately, it would undercut the public support for this entire program. >> that's one of the things that are so terrible, because there are obviously people in need of rehab, and there are legitimate clinics out there. but without proper oversight, we don't know which ones are legitimate. i know on the program last night, you called for an audit on these drug rehab programs. what specifically do you want to see happen? >> you are correct, this program has undoubtedly helps tens of thousands of people. but i request an audit because i want to get to the bottom of what has happened. it's to the state auditor, which is an independent audit agency, separate from the executive branch, and i want to know how this happened for so long, how pervasive is fraud, and more importantly, what can we do to change laws and regulations so the fraud doesn't occur in the future. >> for 29 clinics they are temporarily suspended but only comes after we told the state what we were finding. so can the people of california really trust the state audit is the question? >> i think it's a good step forward to suspend payments or shut down the clinics. but it's important to have a separate audit agency independent from the department in charge to conduct an audit, find out who knew what when, why something was not done sooner and what laws or policies may need to be changed. >> drew, we're seeing some of these clinics suspended and shut down. >> i think the state senator is onto something. it needs to be taken out of the agencies overseeing this, to have an independent audit, to look at the big picture of what is happens in terms of oversight. the investigators found the fraud, nothing was done. that's the bottom line as far as our reporting. as for whether or not the state, these agencies, the health agency is now serious about it, tomorrow night you'll see how hard it was for us to find that answer, anderson. and it was shocking for us to see state officials refusing to address the problem and refusing to address us. >> that's the thing, drew, as we've seen in so many of the investigations you have dope, whether there is these bogus charities giving more money to fund-raisers. if you have nothing to hide, they should grant you an interview. it's like cockroaches scurrying when you return on the lights. people are just running from you. >> that's absolutely right. keep in mind, we are trying to find out what happened to our money, our money. and these are state public officials, paid for with our money. so it's not outrageous what we're asking here. >> drew griffin, appreciate it. senator, thank you. if you've got a tip for drew on this or any other subject, go to cnn.com/investigate. and let us know what you think tonight. follow me on twitter. also ahead, some early answers in that outbreak that's made a lot of people sick to their stomachs. also tonight, the other big story tonight, private first class bradley manning accused of the biggest security leak in u.s. history, facing charges of aiding the enemy and life without parole. he hears from the judge today and her verdict. r million tweets are tweeting. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big. it's time to build a better enterprise. together. identity thieves. they can find your personal information and do some serious damage. like your birthday or your mother's maiden name. you need a new friend. lifelock. we scour billions of data points every day, and if we discover that any of your personal information is misused... lifelock is there. call us at 1-800-lifelock or go to lifelock.com today. the healthcare law gives us powerful tools to fight it... to investigate it... ...prosecute it... and stop criminals. our senior medicare patrol volunteers... are teaching seniors across the country... ...to stop, spot, and report fraud. you can help. guard your medicare card. don't give out your card number over the phone. call to report any suspected fraud. we're cracking down on medicare fraud. let's make medicare stronger for all of us. the beach on your tv is much closer than it appears. seize the summer with up to 50% off hotels at travelocity. if you're living with moderate there are times it feels like your life revolves around your symptoms. if you're tired of going around in circles, get headed in a new direction, and ask your gastroenterologist about humira adalimumab. because with humira, remission is possible. humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief. and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your gastroenterologist about humira today. remission is possible. sentencing hearing begins tomorrow for private first class bradley manning. a military judge today acquitting him of the most serious charge aiding the enemy for turning over 750,000 classified documents and videos. but he was convicted of violating the espionage act. so he's still facing a maximum of 136 years. the manning case has touched off a serious debate over the harm that manning has done and whether the government initially overstated the damage. like the nsa leaker edward snowden, manning has been called a traitor by some, a hero by others. let's talk to jeffrey toobin and what ask your reaction? >> i thought it was a good verdict. i think the charge of helping the enemy was excessive and it was good the judge acquitted him of that charge. but i think what manning did was appalling. he betrayed his fellow members of the military and the foreign service and should be going to prison and others. >> glenn, i know you disagree. >> i do. i think the verdict and jeff's comments underscore what a lot of people really hate about washington, which is if you're sufficiently rich and powerful and well connected in washington, the laws don't apply to you, you don't get punished. the only people that do are people like bradley manning. the theory that the government used was that he engaged in espionage and helped the enemy because the material he caused to be published on the internet was helpful to osama bin laden. bob woodward has written book after book after book and has become extremely rich by publishing secrets way more sensitive to anything manning ever published. nothing he ever published was top secret, but nobody would ever talk about bob woodruff the way jeff toobin just did because he's in good standing in washington. they leak all the time. washington is all about leaks, but the only people who get punished are people who are marginalized. >> jeff, you do have people leaking all the time. >> you do have some leaking going on. we could have a debate on a case by case basis. but bradley manning released 700,000 cables, including the life's work of a lot of foreign service officers who risked their lives, and the people they talked to risk their lives to talk to american officials. and the idea that bradley manning has the right, and it was somehow justified in releasing this material i think is just completely wrong. you know, bob woodward is a separate story and unrelated. >> glenn, does a government have any form to secrecy in their foreign policy discussions that go on in embassies overseas? because those were a lot of the cables bradley manning released. >> the government has limited rights to secrecy, but it is so wildly abused. the idea, the argument that people made when these diplomatic cables were released, there's nothing significant or new in these cables. why were they all marked secret? the reason is because the government just marks everything secret. the thing most bizarre, anybody that would call them selves a journalist who would call for the prosecution and imprisonment for bradley manning is baffling. what he did is the job of journalists, which is to bring transparency to what the government is doing. even the pentagon admits that its early claims how he has blood on his hands was wildly overstated. he released low-level secrets that informed a the world about the u.s. government. >> but it's not up to bradley manning to make the decision to disclose this. the people who wrote those cables have devoted their lives to trying to make the world a better place, particularly foreign service officers. maybe you disagree about that, glenn, but i admire the foreign service a great deal. i trust their judgment about what's a secret a lot more than bradley manning. >> look, jeff, you can make that argument in every week case. people in the '60s said daniel elsberg was a traitor. who was he to decide what should be leaked to the public. but what he did was expose systematic lies in the government. in the bush years, whoever told the new york times that the bush administration was spying without warrants, what right did they have to disclose secrets? this is how investigative journalism works is people inside the government with a conscience when they come forward and disclose it through journalism. if you think that's criminal, you're calling for the end of investigative journalism. that's what it is about. >> i appreciate your education to me of what journalism is, but releasing 700,000 cables in a completely blunder bust way is not the same work as bob woodward. >> how about daniel elsberg? >> he also wrote the pentagon papers. he disclosed what he wrote, which is very different than bradley manning disclosing hundreds of thousands of cables that he didn't even read, much less write. >> you don't know that he didn't read them. >> glenn makes an interesting point and it is accurate, that when this was all revealed, you hood politicians up and down saying he has blood on his hands. you have people in the obama administration say thing is causing cataclysmic damage to national security. and then later on in testimony, secret testimony that was revealed in reuters and other news outlets, they staid, it was embarrassing, but it didn't amount to much. >> i have no doubt that the government officials here overstated the amount of danger. but that doesn't mean there was no danger, and that doesn't mean we don't know fully what the danger was, including the risk -- the fact that many people may not talk to government officials anymore as a result of these kind of disclosures. >> jeff, what legal precedent this sets, if any, for edward snowden? >> a big one. i think snowden will be confirmed in his desire to stay out of the united states, because i think their situations are very parallel in terms of the amount of disclosure that went on. and i think he's likely to face exactly this kind of prosecution and exactly this kind of result and sentence. >> jeff, what do you make of the way bradley manning was treated and the conditions which he was held? >> that was an appalling -- it was too much done. it was inappropriately harsh conditions. but that doesn't justify the underlying behavior that led to the case either. >> glenn, you posted on twitter today, so weird how most people claim i would respect snowden's act if he fled. don't apply that to bradley manning. explain what you mean. >> so many people say, of course, we need more transparency. people say if snowden hadn't fled i would respect them. but bradley manning didn't flee. look what jeff said earlier. manning is wrong because he didn't read all the documents he leaked. i can assure you that every single document edward snowden turned over to us he read before he gave them to us, because every document is filed according to topic. so if what jeff is saying is true, which is my problem with bradley manning, he should be praising edward snowden, yet he isn't. people all contrive excuses to attack anybody who brings transparency to the government unless they're powerful officials in washington. >> i'm not talking about powerful officials. i'm talking about foreign service officers who are on the street in every capital in the world. and small cities around the world, trying to gather information, report it to their superiors. the idea that bradley manning is the only one or edward snowden is the only one who has a conscience and who is decent and has the right to disclose the work of all these people is just absurd to me, glenn. >> thank you. >> thanks, anderson. for more on the story, go to cnn.com. just ahead, a jailbreak caught on camera. a suspect takes a phone call and hurls himself through an open window and high tails it to a get away car. how the escape played out. details ahead. mine was earned in djibouti, africa. 2004. vietnam in 1972. 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