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.

 

 

Lawmakers cite Post’s investigation as motive for change

Local lawmakers agreed on Wednesday to cross the aisle and work together on passing legislation to address the opioid crisis and corruption in sober homes.heroin-front-page

During a brief presentation at a meeting of the Palm Beach County Commission and its Legislative Delegation, Democratic Senator Jeff Clemens of Lake Worth urged his colleagues to support a bill soon to be proposed by Republican Rep. Bill Hager of Boca Raton that will address sober home regulation.

Palm Beach County Mayor Paulette Burdick praised the Palm Beach Post for its investigation of corruption in the drug treatment industry and the opioid epidemic.

“We as elected officials work hard in the community and have created task forces but the media, in particular our local Palm Beach Post, has done a wonderful job with presenting the faces of the addiction problem and the health care issues statewide that effect all of us,” Burdick said, referring to a recent article that estimated the cost of the opioid epidemic at Florida hospitals at $1.1 billion.

Spoon sigAssistant County Administrator Todd Bonlarron, formerly the county’s top lobbyist, said he has sent “dozens” of articles from the Post’s series to the White House National Office of Drug Control Policy, hoping to show the extent of the problem.

“We really have struggled in Congress to make the case that we are dealing with a crisis,” Bonlarron said. “This really is a priority issue for us.”

Clemens said he will seek money to continue funding the Palm Beach County Sober Home Task Force, created by Palm Beach County State Attorney Dave Aronberg. The task force has made 9 arrests and drafted proposed legislation.

Clemens and Hager have led the 4-year-long battle to reign in sober homes and succeeded in passing a bill that prohibits treatment centers from referring patients to sober homes that have not been certified by the Florida Association of Recovery Residences.

The county will also seek more money for the Southeast Florida Behavioral Health Network, which is contracted by the Department of Children and Families to oversee drug treatment providers.

 

 

 

First woman arrested in sober home crackdown

BREAKING: Amanda LaFrance, 25, came to Florida three years ago to get clean and found herself in court on Saturday facing 13 counts of brokering other addicts with insurance to Whole Life Recovery, a treatment center in Boynton Beach whose owner and operator faces charges of paying kickbacks for clients.lafrance-mugshot

LaFrance is also the first woman to be charged in the Sober Home Task Force’s crackdown on patient brokering in the sober home business. All eight arrests stem from the business practices Whole Life Recovery.

According to the arrest affidavit, LaFrance deposited $6,750 in 13 checks from Whole Life Recovery for case management services. Deon Hill, her business partner and father of her 6-month-old daughter, deposited a check for $525 from the treatment center.

>> Read more: Addiction Treatment – Inside the gold rush << 

Hill, 50, has not been charged but is currently being held without bond at the Palm Beach County Detention Center on an unrelated armed robbery charge.

LaFrance’s public defender asked that LaFrance be released on her own recognizance or supervised release because she has no criminal history. Her mother, Lorraine Rucki, asked that she be allowed to take her daughter back to New Jersey for treatment or to place her in detox in Palm Beach county.

Assistant State Attorney Justin Chapman argued that LaFrance should be held on the recommended bail:  $39,000 – $3,000 for each of the 13 counts.

“We are dealing with a very vulnerable population,” Chapman said. “They are being herded like cattle basically.”

However, she will remain in jail until she can prove that the money that would be used to post her bail did not come from illegal activities.

LaFrance’s monther, Lorraine Rucki, testified that her daughter relapsed, is homeless, has no job and is already experience withdrawal symptoms in jail.

Palm Beach County State Attorney Dave Aronberg, who created the task force in July with $275,000 from the legislature, said there will be more arrests.

“The heroin crisis is fueled by bad actors in the treatment industry,” Aronberg said. “Our task force will continue to target sober homes that violate Florida Law and jeopardize their residents safety.”

MORE DETAILS TO FOLLOW.

 

 

Buzzfeed probe of sober homes cites Post investigation

Corruption in South Florida’s drug treatment industry grabbed headlines on the web on Saturday with an in-depth story by Buzzfeed News – the online news and entertainment giant.Spoon sig

The article chronicled recovering addicts victimized in some of the scams uncovered in the Palm Beach Post’s 8-month investigation. By linking to several Post stories, the Buzzfeed article – “Addicts for Sale” – explained how addicts with insurance are bought and sold by “marketers,” “body brokers” and “junkie hunters” who work for sober homes.

The story focused on Delray Beach, where hundreds of sober homes and outpatient treatment program are the focus of a 2-year-investigation by and FBI task force. Investigators raided two sober homes. However, no charges have been filed.

Besides patient brokering, authorities are investigating insurance fraud resulting from unnecessary urine drug tests and kickbacks paid to addicts, sober home operators, outpatient treatment programs and labs – all who need addict’s urine to continue billing insurance companies.