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Patients in california. our investigation found half of that money, or about $94 million, as gone to clinics that have shown questionable billing practices or signs of fraud. former drug medi-cal supervisor says she complained to the state for years about all the obvious fraud. we found billing records for people in jail, one person dead, people who said they didn't need this kind of treatment. >> uh-huh. >> reporter: clinics closed on a certain day, billing for that certain day. >> you hi. >> reporter: none of this surprises you? >> not at all. we found all of those things. >> reporter: for m...

Have shown questionable billing practices or signs of fraud. former drug medi-cal supervisor says she complained to the state for years about all the obvious fraud. we found billing records for people in jail, one person dead, people who said they didn't need this kind of treatment. >> uh-huh. >> reporter: clinics closed on a certain day, billing for that certain day. >> you hi. >> reporter: none of this surprises you? >> not at all. we found all of those things. >> reporter: for more than a month, cnn has been asking for an explanation from the state of california, and for more than a month, ...

Program, including program audits. we analyzed patient billings, even watched clinics undercover to see who was getting treatment and who wasn't. the result, we found that in the last two fiscal years, half of the nearly $186 million spent for drug medi-cal, about $94 million, went to clinics that have shown questionable billing practices or signs of fraud. case in point, the man with the cigar, a convicted felon named alexander ferdman. >> ferdman was the organizer. >> marshall vote was the lead investigate who helped prosecute ferdman back in 2000 for running a texas-based crime syndicate th...

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...

Our investigation found half of that money, or about $94 million, as gone to clinics that have shown questionable billing practices or signs of fraud. former drug medi-cal supervisor says she complained to the state for years about all the obvious fraud. we found billing records for people in jail, one person dead, people who said they didn't need this kind of treatment. >> uh-huh. >> reporter: clinics closed on a certain day, billing for that certain day. >> you hi. >> reporter: none of this surprises you? >> not at all. we found all of those things. >> reporter: for more than a month, cnn ha...