Federal agents arrest father and son in billion dollar fraud scheme

Federal investigators have arrested 39 year old Nathan Young and his 71 year old father, David Young, for allegedly running one of the largest sober-home fraud schemes in United States history. The New York Post reported that the pair were taken into custody after authorities accused them of orchestrating a sprawling fraud operation based in California. [1]

Federal prosecutors stated that Nathan Young, who was known to clients as Pablo, and David Young operated facilities that submitted more than 1.6 billion dollars in claims to major health insurers between 2020 and 2026. The New York Post reported that the insurers targeted in the scheme included Aetna. [1]

According to federal prosecutors cited by the New York Post, the alleged scheme kept insurance cash flowing by supplying recovering addicts with illegal drugs. Prosecutors stated that the operators also coached clients to fake their addictions to continue billing the insurance companies. [1]

The arrests add to recent federal enforcement actions in the state. As FTMQ News reported earlier, federal law enforcement officers recently charged 28 foreign nationals in California during a separate federal investigation into alleged illegal voter registration. [1][5]