November 15, 2019 – Yates owned and operated Morningside Recovery, a substance-abuse treatment facility in California. Prosecutors say he conspired with father-son duo Jeffrey and Nicholas White to fraudulently enroll individuals with substance abuse problems “in ACA plans that offered the highest possible reimbursement for residential substance abuse treatment services, even though the patients were not in fact residents of the offering state, as required by law.”
After Whites and Yates then arranged to have the individuals admitted to Morningside Recovery facilities for treatment, according to the indictment, Morningside Recovery then billed ACA plans in Connecticut and elsewhere for thousands of dollars for treatment services.
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