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Billing for the koun county ser you're not providing. and then there's alexander ferdman. he came to california, setting up a drug rehab clinic, and billing taxpayers even though felons are barred from running drug medi-cal centers. mr. ferdman, how can a guy with a record like you being operating a drug rehab clinic here in california. you have been convicted of a major insurance car crash scheme in texas. >> i was convicted, but it's not what it seems. >> in the last two fiscal years, taxpayers spent nearly $186 million supposedly treating alcohol and drug abuse patients in california. our i...

Program in the nation paid for with federal and state dollars. a one-year investigation by cnn and the center for investigative reporting found the rehab portion of that program called drug medi cal is rife with fraud, has operators who bill the government for made-up clients and often get away with it. joy saw plenty of fraud in the nine years she spent working as a supervisor over drug medical. >> i believe the word got out that there was easy money to be made in the outpatient drug-free system. >> how bad is it? >> it's bad. it was real bad. i left state service about three years ago, and w...

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 answered a question. >> the state of california takes fraud very seriously and there are many investigations that are under way. the allegations, all allegations are given full and fair consideration and you have caught me running because i am late for a meeting that i'm chairing. >> i wonder if you would just do one thing and maybe ask toby douglas to sit down and talk to us and explain to us some of the question...

>> bigger picture of problems. >> and only now two weeks before these two national news organizations are about to release a major study of what we found was extensive fraud is the state of california doing this extensive review. coincidence? >> it's not a fair characterization. we've been investigating all along. >> my question is why has it taken the state so long to catch up to this? >> look, there are bad people who want to scam this program, and we are going to do everything possible to investigate and deploy the necessary resources to improve and enhance our enforcement effort. >> so you...

To collapse, radioed the firefighters, and ordered them to back away. several firefighters got hit with burning debris and some were knocked to the ground. only minor injuries for a few firefighters. the fire chief says training and experience saved the day. well, after testifying this week in a boston mobster's murder trial, a former fbi man is talking exclusively to us here at cnn. he spoke harshly about the man on trial and the fbi as well. also, cnn special report that the results of a year-long investigation, it's a look into shocking fraud and abuse involving a taxpayer funded rehab ...