>> how do you do? >> we've been trying to reach you and talk to you about the widespread fraud that's in the medi-cal drug rehab business. but we're told that neither you north program director or anybody in the state of california will talk to us about it. >> in an uncomfortable moment, the secretary at first refused to speak. >> secretary? do you know alex ferdman, a convicted felon, who apparently runs one of these clinics and has been billing the state of california for several years? despite the fact that there have been complaints registered with the department about him? he's convicted of a major insurance fraud in the state of texas but for somehow was able to get certified and has been billing. i'm just wondering if there's anybody in the state of california that's concerned about this fraud. >> then finally answer add question. >> the state of takes fraud very seriously. and there are many investigations that are under way. the allegations, all allegations are given full and fair