L os Angeles, CA – 31-year-old Darius Moore has been sentenced to 84 months in federal prison for orchestrating an illegal kickback scheme that exploited patients in need of recovery services.
Federal Sentencing for Healthcare Fraud
Throughout 2020, Moore illegally collaborated with addiction treatment facility owners to broker patients to their respective facilities for drug addiction treatment. These facilities would bill his referrals’ private health insurance plans and in turn pay Moore a share of these insurance fees as “kickback” payments totalling more than $500,000. Moore would plead guilty in November 2021 to one count of conspiracy to pay or receive illegal remunerations for referrals to clinical treatment facilities and one count of soliciting or receiving illegal remunerations for referrals to clinical treatment facilities.
This arrangement violated federal anti-kickback laws, which prohibit the exchange of remuneration for patient referrals when services are funded by government health programs such as Medi-Cal or Medicare.
Neglect in the Recovery Housing Industry
While intended as supportive environments for those in addiction recovery, some sober living homes in California have come under scrutiny for lapses in oversight and patient welfare. In this case, some patients were allegedly placed in homes without adequate care, supervision, or medical follow-up.
When referral decisions are driven by financial incentives, it can compromise patient safety and contribute to relapse, exploitation, or lack of medical care—particularly for vulnerable individuals exiting detox programs or correctional facilities.
Data on Fraud and Neglect in Care Facilities
The U.S. Department of Health and Human Services has identified fraud and abuse in addiction recovery and long-term care settings as a growing national concern. A 2023 OIG report revealed that over $1.6 billion in fraudulent billing and kickbacks had been uncovered in addiction treatment and care home settings over the last five years.
Meanwhile, watchdog groups continue to report rising complaints from residents and family members involving neglect, unsanitary conditions, and unsafe staffing at sober homes that operate without meaningful regulatory supervision.
California, in particular, has faced criticism for failing to implement stricter oversight, especially in counties like Orange and Riverside where hundreds of unlicensed recovery homes operate under vague legal definitions.
Speak With a California Elder and Care Home Abuse Attorney
We at the Sehat Law Firm were disturbed to learn of this scheme involving Darius Moore.
If you or a loved one has suffered abuse, neglect, or exploitation at a sober living home or care facility, you may have legal options. The Sehat Law Firm is committed to protecting vulnerable individuals and holding negligent or fraudulent providers accountable.
Call us today at (949) 825-5200 or complete the form at the bottom of this page to speak confidentially with an experienced attorney.
Legal Disclaimer: This article provides general information only and should not be considered legal or medical advice, nor does it create an attorney-client relationship. Laws vary and any referenced here may not apply to your situation. This article was created from secondary sources and so may not be completely accurate. If you have any concerns, please contact us, and we’ll update or remove the post as needed.
