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Million in one year that we believe was 100% questionable billing. reporter: and that one provider was no isolated instance. over and over we found examples of fraud. not hidden fraud. this was happening in plain sight. for example, george oluno. 19-year-old darshay miles was just 14 when she went to his rehab center. along with her mother and three sisters. it s against the law to pay drug rehab clients. but that apparently didn t stop oluno. miles said he paid her and other clients $5 each time they signed in for group counseling. all so he could then charge medical between $28 and $61 per signature. at first i didn t know it was illegal. i didn t know nothing about i thought it was just a thing. you supposed to get paid to go in there. until people was like, oh, george was like you got to don t speak out loud about the ....
Because for the last 11 years he s been on a list of people banned from billing medicaid. convicted of student loan fraud. george oluno should never have been allowed to even open this clinic called g.b. medical. i m asking you a few questions, sir, about the drug rehab business. i want to ask you about you seem to be at the center of fraud allegations here. no, no, no, no. reporter: have you been faking signatures on to sheets of paper and billing the state for the money? guess what else? oluno is facing felony criminal charges for ripping off the state. allegedly getting paid by taxpayers to rehab drug abusers who weren t even there. excuse me, sir. how can you bill the state for clients that don t exist? mr. oluno? mr. oluno? just one second, sir? we never saw oluno again. ....
California. it gives an eye opening look at fraud and abuse. the program looks like a noble cause on paper. it s a privately run rehab clinic. they get medicaid money for billing for each addict money who needs counsels. we have found a system riddled with fraud and poor oversight. from billing for phony patients to allowing convicted felons to rub rehab centers. because it s happening in california, folks, this is big money. state and federal taxpayers are on the hook for tens of millions of dollars each and every wreer. investigative correspondent drew griffin reports. reporter: mr. oluno, drew griffin with cnn. how are you? george oluno has run a taxpayer funded drug rehab business in southern california for the past six years. which is surprising. ....
how bad is it? it s bad, it s really bad. i left state service about three years ago, and we would have one provider that would bill for over a million dollars in one year, that we believe was 100% questionable billing. and that one provider was no isolated instance. over and over, we found examples of fraud. not hidden fraud. this was happening in plain sight. for example, george oluno. 19-year-old darshay miles was just 14 when she went to his rehab center along with her mother and three sisters. it is against the law to pay drug rehab clients, but that apparently didn t stop oluno. miles said he paid her and other clients $5 each time they signed in for group counseling, all so he could charge medical 28 and $61 per signature. ....
Drew griffin keeping them honest tonight. reporter: drew griffin with cnn. george has run a taxpayer funded drug rehab business in southern california for the past six years, which is surprising because for the past 11 years he s been on a list of people banned from bills medicaid. convicted of student loan fraud, george oluno should never have been allowed to open this clinic. what am i doing wrong? i m asking you some questions about the drug rehab case. have you been faking signatures on to sheets of paper and billing the state for the money? guess what else, he s facing felony criminal charges for ripping off the state. allegedly getting paid by taxpayers to rehab drug abusers who weren t even there. ....