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Including evidence of ghost clients. two years ago, the county uncovered what appeared to be fraudulent documentation used for billing. a state auditor urged they be shut down. not only did pride stay open, it got even more medi-cal money. more than $1 million in a year. in its most recent investigation brought you by yet another employee accusing pride of billing for ghost clients, investigators found the allegations unsubstantiated, but found the operation extremely troubling, discovering missing paperwork, signed and dated waivers with no client information and missing treatment plans. desp...

For clients on wednesdays as these records show, including 60 on the day we went in with hidden cameras and found no clients there. as for ed waginney, he told us two years ago that pride accepted responsibility for deficiencies. we went looking for ed waginney, seen in this police mug shot, relate to do an arrest in 2003. >> reporter: hi, cnn, how you doing? is godfrey in? >> he's actually not here at the moment. >> reporter: pride counselor marquita jones denied any wrongdoing. >> reporter: we want to talk about an investigation we're doing on ghost clients, billing the state and county for ...

Throwing away taxpayer's money. >> reporter: that was in 2009. regulators have found severe deficiencies at pride health services, from 2005 to 2011, including evidence of ghost clients. two years ago, the county uncovered what appeared for fraudulent documentation used for billing. a state auditor urged they be shut down. not only did they stay open, it got even more money. more than $1 million in a year. in its most recent investigation brought you by yet another employee accusing pride of billing for ghost clients, investigators found the allegations unsubstantiated, but found the operation...