Possible plea deal in the works for Delray Beach sober home operator Eric Snyder

A preliminary hearing in federal court  for  Eric Snyder, owner and operator of a Delray Beach drug treatment center and sober home raided by the FBI in December 2014, has been delayed for 30 days to give attorneys time to “consider whether or not a pre-indictment resolution” can be worked out.

Snyder was arrested on July 11 and charged with fraudulently billing insurance companies for $58.2 million over nearly five years, according to court records.

Snyder, 30, and Christopher Fuller, 32, described in a 26-page federal complaint as a “junkie hunter” hired by Snyder, were charged with conspiracy to commit health care fraud. The document described how Snyder bribed patients with airline tickets, cash, rent and visits to strip clubs. Fuller trolled AA meetings and “crack” motels to find patients, the complaint said.

The court hearing was reschedule to Oct. 16.

Musclebound millionaire: The Palm Beach Post’s story on Eric Snyder

Snyder Snyder is one of the many drug treatment operators exposed in a 2-1/2 year-long Palm Beach Post investigation that revealed the profits to be made from urine-screening in the county’s thriving but corrupt sober home industry.

Snyder’s treatment center, Real Life Recovery, and sober home, Halfway There, raked in more than $18 million from the $58.2 million in fraudulent claims to insurance companies, including Blue Cross/Blue Shield, United Healthcare, Aetna, Cigna and Humana for urine drug tests and “bogus” treatment, according to court documents.

The profits have attracted the attention of the Internal Revenue Service. In March, the IRS filed a lien, saying Snyder owed $2 million in back income taxes.

Shortly after his arrest, Snyder’s attorney, Bruce Zimet, said Snyder did not “intentionally” participate in fraud.

“Eric has personally been involved in saving many, many lives and making a difference in many other lives of those suffering from addiction,” Zimet said.

 

 

After 30 corruption arrests, how many drug rehabs are left?

Recently released data from the Department of Children and Families disproves claims that the crackdown on corruption in south Florida’s drug treatment industry has caused a sharp decline in the number of treatment providers.

According to a licensing report provided to the Palm Beach County Sober Home Task Force at a meeting last week, as of Aug. 1 there were 207 licensed treatment providers in Palm Beach County – up 1 from the 206 providers licensed a year ago.

»»Latest stories on sober homes and addiction treatment

There are another 127 prospective treatment providers in Southeast Florida awaiting licenses, the data show. However, the west coast of Florida has even more applications – 166.

“That means a lot of the industry is heading to the southwest coast of Florida,” said Chief Assistant State Attorney Al Johnson – head the county’s Sober Home Task Force – at the task force meeting.

Overall, there are 3,546 drug treatment providers in the state – up from 3,230 providers in 2016.

The data also show that 140 providers in southeast Florida, including Broward and Miami-Dade counties have voluntarily closed their doors. Another 16 providers were shut down when their licenses were revoked, according to the data.

The Palm Beach County Sober Home Task Force has made more than 30 arrests since it began investigating corruption in the billion-dollar sober home industry in south Florida. A federal task force has made 9 arrests.

Doctor in Kenny Chatman case pleads guilty to health care fraud

Dr. Joaquin Mendez, a former medical director for Kenny Chatman’s notorious Reflections Treatment Center, pleaded guilty to conspiracy to commit health care fraud today.

He faces up to 10 years in federal prison.

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

Mendez was the last holdout among eight people arrested in a fraudulent multi-million dollar drug treatment operation run by Chatman.

He admitted today to being essentially a doctor in name only for Reflections between September 2014 and September 2015. Although Mendez was supposed to be seeing patients and dictating their medical care, Chatman was the one deciding when people would get tested.

RELATED: ‘Kenny Chatman kidnapped me:’ Read one woman’s human trafficking story

Mendez would sign doctor’s orders without ever seeing the patients. He also signed off on hundreds of “certificates of medical necessity” for urine and saliva tests after the testing had already been done – and in some cases, the patients had already been discharged from Reflections.

If he had been closely following the drug test results, he would have noticed that up to 90% of the people in Chatman’s care were actively using drugs.

His actions helped turn Reflections, in Margate, and Chatman’s chain of sober homes into a multi-million dollar operation, despite Chatman having no experience in health care when he founded the facility in 2013.

Chatman’s crimes went far beyond health care fraud, however. His sober homes throughout Palm Beach County were houses of horror, where drug use was rampant and where some female patients were kept chained up so he could prostitute them. At least four people died of overdoses while in his care.

Chatman was sentenced to 27 1/2 years in prison in May. All of the other defendants also took plea deals, including another doctor and Chatman’s wife.

Mendez had held out because his attorneys, Richard Lubin and Anthony Vitale, wanted more time to review the mountain of evidence in the case, which included 326 gigabytes of digital records and 225 boxes of paper records.

Lubin said today that after reviewing the evidence, Mendez chose to plead guilty.

Mendez is scheduled to be sentenced Sept. 27.

Doctor in Kenny Chatman case expected to plead guilty

The last defendant in Kenny Chatman’s drug treatment fraud scheme is expected to plead guilty, according to a Thursday court filing.

Dr. Joaquin Mendez had pleaded not guilty to federal charges of money laundering and conspiracy to commit health care fraud. What he will plead guilty to is unknown; a change of plea hearing is scheduled for July 14.

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

He was the final holdout among eight people arrested in a multi-million-dollar drug treatment operation created by Chatman, who was sentenced to 27 1/2 years in prison in May.

Chatman, a felon who had no experience in health care before he created Reflections Treatment Center in Broward County in 2013, also trafficked his female patients. In his sober homes scattered throughout Palm Beach County, he held women captive and prostituted them.

RELATED: ‘Kenny Chatman kidnapped me:’ Read one woman’s human trafficking story

Together, the defendants will have to pay back millions to more than a dozen insurance companies that were defrauded.

Mendez was a former medical director for the Reflections. One of the reasons he declined to take a plea deal is because his veteran defense attorney, Richard Lubin, wanted more time to evaluate the evidence.

The amount of evidence in the case was “massive” – more than he’d ever seen in his 42 years in law, Lubin wrote earlier this year. It included:

  • 326 gigabytes of digital records copied onto an encrypted hard drive.
  • 236,245 digital files organized into 8,307 folders
  • 16,064 records in 133 files of patient data
  • 1,719 patient case files with as many as 600 pages in each file
  • 30 FBI taped interviews
  • 225 boxes of paper documents that prosecutors said would take 6-8 weeks to copy

Chatman was first exposed in a 2015 Palm Beach Post story. He was also recently profiled by NBC News.

County Commissioner Melissa McKinlay honored for efforts to fight opioid epidemic

Palm Beach County Commissioner Melissa McKinlay has been honored by the Florida Association of Counties for her efforts to help communities across the state deal with the opioid epidemic.

FAC President Kathy Bryant presents the award to Vice Mayor Melissa McKinlay at the Legislative Awards Luncheon held at the Palm Beach County Convention Center on June 28, 2017. (Handout photo)

At a ceremony Wednesday at the Palm Beach County Convention Center, McKinlay received the Marlene Young Presidential Advocacy Award, which is presented to a county elected official who has shown extraordinary leadership.

“Her commitment to opioid abuse saw success with additional federal and state funding as well as tougher penalties,’’ FAC President Kathy Bryant said as she presented the award to McKinlay.

On Thursday, Governor Rick Scott signed an executive order extending his public health emergency declaration on the opioid crisis for another 60 days. McKinlay had sent him a letter earlier this month requesting the extension.

McKinlay also was among the first public officials in the state to lobby Scott for the initial declaration, which he issued May 3. She helped persuade the commission in April to adopt an initial $3 million plan to address the crisis.

McKinlay ramped up her efforts to fight the epidemic after the overdose death of her chief aide’s adult daughter in 2016.

McKinlay will be the keynote speaker Aug. 31 in Boca Raton at a rally to observe International Overdose Awareness Day. She will speak as a guest of Southeast Florida Recovery Advocates. The rally will be held at Florida Atlantic University from 6:30-8:30 p.m.

The Marlene Young Presidential Advocacy Award is named after the late Marlene Young, who served as a County Commissioner in Polk County from 1988-2000. She was a founding member of the Florida Counties Foundation, and in 1993 she became President of FAC.

 

Drug treatment center doctor who worked for Kenny Chatman will stay out of jail

A doctor who worked for corrupt treatment center operator Kenny Chatman will not be going back to jail – at least for now.

Federal prosecutors wanted Dr. Joaquin Mendez, who is out on $100,000 bond, back behind bars after they argued he violated the terms of his release by treating patients and prescribing opioids.

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

But Mendez’s lawyer, Richard Lubin, argued the terms were vague, and both sides agreed last week simply to amend the terms of his release.

Mendez, a former medical director for Chatman’s corrupt Reflections Treatment Center, is the only one of eight defendants not to have taken a plea deal for their involvement with the facility.

The seven others, including Chatman and his wife, Laura, were sentenced to a combined 58 years in prison.

Mendez has been charged with money laundering and conspiracy to commit health care fraud for ordering unnecessary urine drug tests for addicts, according to prosecutors.

One of the terms of his release, added in handwriting to the paperwork, was that he “not use his Medicare number to provide any services.”

Prosecutors said he violated those terms after he treated at least 188 Medicare patients wrote more than 100 prescriptions for controlled substances that included oxycodone, Oxycontin, clonazepam and fentanyl.

Lubin, his lawyer, argued the terms were weirdly vague.

“Not only is this Court and Dr. Mendez left guessing at what it means to ‘treat patients using his Medicare number,’ it is entirely unclear what the Government means by ‘Medicare number,'” Lubin wrote.

HEROIN: Killer of a generation

Apparently the ‘Medicare number’ prosecutors referenced was Mendez’s Provider Transaction Access Number, which Lubin said had “absolutely nothing to do with” Medicare claims.

On Thursday, both sides agreed to changing the terms of release.

Mendez is one of two doctors in charge of overseeing patient care at Chatman’s facilities to be arrested. Last Week, Dr. Donald Willems was sentenced to 10 years in prison – the maximum sentence – after pleading guilty to conspiracy to commit health care fraud.

Chatman was sentenced to 27 years in prison last month after admitting to turning his female patients into prostitutes and pimping them out online.

Sober Home Task Force arrests Delray rehab admissions director

Sarah Muhammad

A 57-year-old Boca Raton woman was arrested by the Palm Beach County Sober Home Task Force on Thursday and charged with 35 counts of patient brokering.

Sarah Muhammad was employed at Chapters Recovery, which also did business at Good Futures Recovery in Delray Beach. The arrest report with details of her alleged involvement was not available. Muhammad is the 27th arrest by the task force since October 2016.

In May state lawmakers renewed funding for the Sober Home Task Force, headed Palm Beach County State Attorney Dave Aronberg. According to Aronberg, the money will allow the task force to continue operating for another year. The task force is comprised of law enforcement from a dozen state and local agencies.

HEROIN: Killer of a generation

In December the Sober Home Task Force raided Good Futures, carrying away boxes of documents and computers.

In March, 93 counts of patient brokering were filed against Daniel Kandler, one of the owners of Chapters. The two other owners, David Remland, and Mark Desimone were arrested on May 11 and charged with patient brokering.

According to police reports, Kandler is the owner of Impact Q Testing, a laboratory adjacent to Chapters on West Atlantic Avenue in Delray Beach. Police reports say that Kandler — along with Remland and Desimone — made payments to James Tomasso and others for urine samples from addicts at various treatment centers.

Tomasso was arrested in February on charges of patient brokering. He told investigators that Kandler paid him $150,000 to bring urine samples to Impact Q Testing.

 

One of Kenny Chatman’s top doctors gets maximum sentence

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

A doctor who treated patients at Kenny Chatman’s notorious drug treatment center was sentenced to 10 years in prison today.

Dr. Donald Willems, an osteopath, was the medical director for Chatman’s Reflections Treatment Center, in Broward County, from October 2015 to May 2016.

He admitted in his plea deal to signing off on drug tests and unnecessary allergy and DNA tests, which helped Chatman turn his drug treatment center into a multi-million dollar business.

Although Willems was supposed to be treating the patients at Reflections, he wasn’t monitoring the results of their drug tests, he admitted. If he was, he would have noticed that most of the patients were not sober and their drug tests were actually being submitted by other people, including Reflections workers.

‘Kenny Chatman kidnapped me’: Read one woman’s human trafficking story

The 10-year sentence was the maximum he could have received after pleading guilty to conspiracy to commit health care fraud.

HEROIN: Killer of a generation

Willems was one of two doctors arrested for working with Chatman, who was sentenced to 27 years in prison last month. Chatman admitted to turning some of his female patients into prostitutes at his sober homes in Palm Beach County. Even in South Florida’s widely corrupt drug treatment industry, Assistant U.S. Attorney Marie Villafaña called Chatman “the most dangerous” player in it.

>> HEROIN: Killer of a generation

Federal prosecutors say the other doctor, Dr. Joaquin Mendez, has violated the conditions of his release on bond, and they asked last week to arrest him again. Mendez is the only one of the eight defendants – which includes Chatman’s wife, Laura – to not take a plea deal.

Willems is also facing four-year-old state charges of racketeering and illegally providing oxycodone for his work at a pill mill in Broward County.

Doctor charged in Kenny Chatman case caught prescribing opioids

Kenneth Chatman walks into Reflections, his treatment center in Margate, in 2015.

Federal prosecutors are trying to get a doctor who worked for notorious treatment center operator Kenny Chatman back behind bars after they say he was caught prescribing the opioids Oxycontin and fentanyl to Medicare patients.

Dr. Joaquin Mendez, facing charges of conspiracy to commit money laundering and health care fraud in January, was out on $100,000 bond. As part of the conditions of his release, he was not allowed use his Medicare number to “provide any services,” according to a court filing on Friday. His Medicare number was also revoked after he was released.

But federal prosecutors say that between February and May, Mendez treated at least 188 Medicare patients, and he wrote more than 100 prescriptions for controlled substances that included oxycodone, Oxycontin, clonazepam and fentanyl.

‘Kenny Chatman kidnapped me’: Read one woman’s human trafficking story

Prosecutors wrote that agents learned Mendez was dropping in on assisted living facilities and asking if anybody wanted to see a doctor. He would then either write the patient a prescription or refer them to a home health agency.

A judge will decide whether he will be arrested again.

HEROIN: Killer of a generation

Mendez is the only co-defendant who has not taken a plea deal in the massive fraud case against Kenny Chatman and his treatment centers, Reflections, in Broward County, and Journey to Recovery, in Lake Worth.

Read The Post’s first story on Chatman: Police reports link sober home operator to prostitution

In addition to fraud charges, Chatman admitted to turning some of his female patients into prostitutes at his Palm Beach County sober homes. Last month, he was sentenced to 27 years in prison and forced to register as a sex offender. His lawyers said he will appeal the sentence.

Prosecutors say Mendez ordered unnecessary urine drug tests for patients at Reflections and Chatman’s other treatment center, Journey to Recovery, in Lake Worth.

Mendez would be the second doctor in the case to get caught violating the conditions of his release. Dr. Donald Willems went back to jail after police discovered he was working in a drug treatment center and prescribing drugs he was not authorized to prescribe.

Willems, who pleaded guilty to conspiracy to commit health care fraud, will be sentenced today in Miami. He faces up to 10 years in prison.

Derek Jeter opens youth addiction treatment center in Tampa

Derek Jeter, the former New York Yankees star who is trying to buy the Miami Marlins, has opened a new treatment center for teenagers addicted to drugs and alcohol.

Derek Jeter in action at Marlins Park in 2012, FL. (Allen Eyestone/The Palm Beach Post)

“We understand everyone has bumps in the roads and difficult times we want them to know that there are places you can go to for support,” Jeter told reporters last week at the dedication of the Derek Jeter Youth Addiction Treatment Center at The Phoenix House.

The facility outside Tampa was paid for in part by a $850,000 by the Turn 2 Foundation, established in 1996 by the Yankees captain and All-Star shortstop who retired in 2014 after 20 years in the game and whose No. 2 jersey was retired by the team earlier this year.

The foundation’s president is Jeter’s sister, Sharlee Jeter. Derek Jeter also made a $150,000 donation, raising the new center’s total to $1 million.