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CNN Newsroom-20130731-15:39:00

why are you taking off? >> reporter: we found case after case of rehab centers like pomona with a history of problems that are still allowed to keep billing the state. tamara is a former counselor at pride health services who claims she was told to bill for clients she didn't actually see. did you have client lists? >> i had a client list, yes. when i first got there, they gave me about 20 folders, 20 folders of clients that they had. >> reporter: did you ever account for the 20 cases that you had in your folders? >> nope. i never could, because -- >> reporter: you couldn't find them? >> some were in jail. one was dead. >> reporter: dead? >> one was dead. and still listed as a client. >> reporter: she said she confronted godfrey and mcginney,

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CNN Newsroom-20130731-15:37:00

different group home. >> you never abused alcohol or prescription drugs or illicit drugs? >> not at all. >> so all the time you spent there, three years, was a waste of your time and a waste of taxpayers' money? >> yes. definitely. >> reporter: that doesn't surprise tamara scherer, a former manager and operator. she estimated that the teens didn't have a drug issue, so medi-cal made them up. >> it took a while to realize how deep a fraud was going on there. >> reporter: other whistle blowers came forward and claimed that so cal was committing fraud by labeling teens with fake addictions. riverside county officials said they didn't have a reasonable way to prove socal was making up addictions. but the county pulled the funds,

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