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Many didn t want to answer. watch what happens when you finally track down an official diana dooley who runs the agency who was supposed to oversee the program. reporter: drew griffin with cnn. how are you doing? reporter: we ve been trying to reach you and talk about the widespread fraud in the drug rehab business. but we re told that nobody will talk to us about it. in an uncomfortable moment the secretary at first refused to speak. secretary do you know alex forgetman, a convicted felon who apparently run once of these clinics and has been billing the state of california for several years despite the fact that there have been complaints registered with the department about him? he was convicted of a major insurance fraud in the state of texas but somehow was able to get certified and has been billing them. i m just wondering if there s anybody concerned about this ....
Keeping you honest tonight. california grilled legislators after a year-long investigation by cnn in the center for investigative reporter. if you re a regular viewer of the program, you know the hearing centered on allegations of fraud in california s fraud program. a program that receives millions of your taxpayer dollars as well. our investigation found fraud so egregious, so bad that as a result, 174 drug rehab locations were suspended with some even shut down. cnn s drew griffin repeatedly for a long time tried to ask the people in charge of the program why they weren t doing more to stop the fraud. his reporting uncovered. nearly every turn, however, people just didn t want to answer. watch what happens when he finally track down an official diana dooley who runs the agency who was supposed to oversee the program. reporter: drew griffin with cnn. how are you doing? reporter: we ve been trying to reach you and talk about the widespread fraud in the drug rehab business. ....
Questionable billing questions. billing medi-call for treatment patients didn t need. in one case, the patient was dead. it s now headline news across california. the san francisco chronicle, the sacramento bee all picking up on it. officials literally ran from our cameras. first, the reporting that has a lot of people talking. drew griffin tonight, keeping them honest. reporter: george aluno shouldn t even be in california s drug rehab business. he s been banned from billing medicaid since 2002. but it hasn t stopped him from billing the state of california. tim agendu is accused of fraudulent practices at his rehab clinic, but it hasn t stopped him from billing the ....
reporter: state health officials in one sacramento building after another refused to be questioned, including toby douglas who oversees drug medical. will you make sure to provide a response why this wide-spread fraud is allowed to continue? after calling the state s secretary of health and humane services dianna duly and getting no for an answer we decided to get a response in person. drew grif within cnn. how do you do? reporter: we ve been trying to reach you and talk about the wide-spread fraud in the drug rehab business and we re told that neither you nor the program director nor anybody inspect state of california will talk to us about it. in an uncomfortable moment, the secretary at first refused to speak. secretary? do you know alex ferdman, a convicted felon who runs a clinic and billing thetaf ....
Welcome back. well, moments ago we showed you how taxpayers are being ripped off by some rehab clinics. it took weeks for drew griffin to get an interview with officials. they finally did sit down with us, and now there s a major crackdown on fraud in the state, but watch what had to happen first. george aluno shouldn t even be in california s drug rehab business. you seem to be at the center of fraud allegations here. no. he s been banned from billing medicaid since 2002 but it hasn t stopped him from billing the state of california. tim is accused of fraudulent practices at his drug rehab clinic but it hasn t stopped him from billing the state of california either. drew griffin with cnn. and who are you? i just told you. i m drew griffin with cnn. i don t wait a minute. your former employees say you re ....