HOLLYWOOD HILLS—On March 21, Casey Mahoney, 48, of Hollywood Hills who was initially indicted in October 2021, and Joseph Parkinson, formerly of Costa Mesa who was named in the lawsuit as a body broker, were charged for their crimes.
According to the U.S. Department of Justice webpage, the two defendants were named in a 22-page indictment after receiving thousands of dollars in kickbacks for patient referrals.
Some of the insurance companies who were paying for the patient’s treatments were Blue Cross Blue Shield, Aetna Life Insurance, Cigna Health and Life, and Cigna Behavioral.
The patients were those in need of substance abuse treatment, and or behavioral health treatment for addictions and or mental illness.
Mahoney was sentenced to 41 months in federal prison and has been ordered to pay $240,000 in fines.
In the U.S. vs. Casey Mahoney and Joseph Parkinson, together were charged on 27 counts including crimes of conspiracy to solicit, money-laundering,… through Healing Path Detox LLC in Orange County, and Get Real Recovery Inc., out of San Juan Capistrano.
Mahoney’s Co-Conspirator, Joseph Parkinson held bank accounts in the name of Star Treatment LLC and Moore Recovery Solutions at both First Bank and J.P. Morgan.
The following came directly from the DOJ website:
“Beginning on a date unknown, but no later than on or about October 24, 2018, and continuing to at least on or about December 15, 2020, in Orange County, California, within the Central District of California, and elsewhere, defendants MAHONEY and PARKINSON knowingly conspired with Broker 1, Broker 2, Moore, and others known and unknown to the Grand Jury, to commit offenses against the United States, namely:
Soliciting and Receiving Illegal Remunerations for Referrals to Clinical Treatment Facilities, in violation of Title 18, United States Code, Section 220(a)(1); and b. Paying and Offering Illegal Remunerations for Referrals to Clinical Treatment Facilities, in violation of Title 18, United States Code, Section 220(a)(2).”
Defendant MAHONEY would pay tens of thousands of dollars per month in kickbacks to defendant PARKINSON and the other Brokers via accounts that they controlled in the names of the business entities that they controlled, both as compensation in exchange for referring patients or patronage to Healing Path and Get Real, and to induce them to continue to refer patients to those facilities.
When defendant MAHONEY accrued a large amount of kickback debt owed to defendant PARKINSON and the other Brokers, defendant MAHONEY would pay those debts (1) by writing checks to them for tens of thousands of dollars beyond what defendant MAHONEY owed.
In total during the conspiracy, defendant MAHONEY would pay at least $2,698,725 in kickbacks to defendant PARKINSON and the other Brokers. Complete details may be found here.
By Sharon