$175 Million Rehab Fraudster Sentenced

$175 Million Rehab Fraudster Sentenced
Photo: Christopher Bathum

LOS ANGELES – On Tuesday the co-owner of a drug and alcohol treatment center pleaded guilty to 46 counts in a $175 million fraud scheme.

44-year-old Kirsten Wallace was immediately sentenced to 11 years in prison. In addition, she faces a restitution hearing on April 17.

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Kirsten Wallace

Wallace owned Community Recovery with 56-year-old Christopher Bathum and “operated treatment centers in Southern California and Colorado.” They were charged  in November 2016.

The pair took the information from some of their clients and made false insurance policies, unbeknownst to them.

They also billed former clients after their treatment period was over.  It has been determined that $44 million was paid out by 5 insurance companies.

For his part, Bathum faces the same 46 counts and his journey in court resumes on April 17.  In addition, he was convicted of sexually assaulting 7 of his female patients. He faces a maximum of 65 years in prison in that case, and up to 45 years in prison in the fraud case.

 

 

 

 

$175 Million Rehab Fraudster Sentenced was last modified: March 21st, 2018 by admin
Categories: Los Angeles