Hollywood Drug Clinic Operator Convicted in $3 Million Body Broker Kickback Scheme

BUSINESS AS USUAL –

Sept. 13, 2024 – From at least October 2018 until December 2020, the man, Casey Mahoney, 48, of Los Angeles, paid about $2.87 million to “so-called ‘body brokers’” who gave thousands of dollars to patients to coax them into Healing Path Detox L.L.C. in Huntington Beach and Get Real Recovery Inc. Some of the money that the body brokers gave to patients was used by the patients to buy drugs, the department’s statement said.

After a nine-day trial, a federal jury in Los Angeles on Wednesday found Mr. Mahoney guilty of one count of conspiracy related to offering illegal remunerations for patient referrals; seven counts of illegal remunerations for patient referrals; and three counts of money laundering, prosecutors said. He was acquitted on one count of aiding and assisting the preparation of a false tax document. The money laundering charges, the most serious on which Mr. Mahoney was convicted, each carry a maximum sentence of 20 years in prison. Sentencing is set for Jan. 17, 2025.