from billing the state of california. tim agendu is accused of fraudulent practices at his rehab practices, but hasn t stopped him from billing either. two are you? reporter: i m drew griffin wait a minute now. your former employees say you re billing for services you re not providing. then there s this man, alexander ferdand. it hasn t stopped him from coming to california, setting up a drug rehab clinic, and billing taxpayers, each though felons are barred from running drug mehdical centers. how can a guy with a record like you be operating a drug rehab clinic california? this is not a reporter: you were convicted of a car crash scheme in texas. i was convicted but it s not what it seems.
clinic called able support. daze been easy money for alexander ferdman. his california drug medi-cal contract is now worth about $2 million a year. his salary, $180,000. even after a 2011 review by los angeles county, found evidence of what it considers to be fraudulent practices at his business. ferdman was allowed to expand. drew griffin with cnn, how are you doing? i d like to ask you some questions about your business if i could. i don t have time right now. how can a guy with a record like you, be operating a drug rehab clinic in california. you ve been convicted of a major car crash scheme in texas? i was convicted, but that s not what it seems. whatever happened, i don t know, 50 years ago, what relevance does it have to today.
angeles county, found evidence of what it considers to be fraudulent practices at his business. ferdman was allowed to expand. drew griffin with cnn, how are you doing? i d like to ask you some questions about your business if i could. i don t have time right now. how can a guy with a record like you, be operating a drug rehab clinic in california. you ve been convicted of a major car crash scheme in texas? i was convicted, but that s not what it seems. whatever happened, i don t know, 50 years ago, what relevance does it have to today. does the county know about your criminal record? they probably do, i don t know. what happened in texas, ferdman told us, should stay in texas. i was facing 99 years, and i choose to take a smaller sentence. i could have it much worse. but there was no fraud and there
fraudulent practices at his business. ferdman was allowed to expand. drew griffin with cnn, how are you doing? i d like to ask you some questions about your business if i could. i don t have time right now. how can a guy with a record like you, be operating a drug rehab clinic in california. you ve been convicted of a major car crash scheme in texas? i was convicted, but that s not what it seems. whatever happened, i don t know, 50 years ago, what relevance does it have to today. does the county know about your criminal record? they probably do, i don t know. what happened in texas, ferdman told us, should stay in texas. i was facing 99 years, and i choose to take a smaller sentence. i could have it much worse. but there was no fraud and there was no record of it in anyway.
crashes ripping off big insurance companies. he listed his occupation as driver of an ice cream truck. reporter: he pled guilty to organized crime and sentenced to seven years in a texas prison. he served just one year, let out early for good behavior and end up in california. even though felons are barred from running drug med cal facilities he opened one and it has been easy money for ferdman. despite his organized crime conviction, his med-cal contract is worth $2 million a year. his salary, $180,000. even after a 2011 review by los angeles county found evidence of what it considers to be fraudulent practices at his business, ferdman was allowed to