Rehab

Fraud and money laundering scheme leaves many penniless

Rehab Regs, March 23, 2007

In Arizona last week, nine men were accused of fraud and money laundering which took in $40 million and defrauded more than 300 people who owned and operated medical outpatient rehabilitation facilities, reported the Tribune in Scottsdale. The men approached individuals and convinced them to pay anywhere from $100,000 to $165,000 to sign contracts with the accused men's company in order to open outpatient rehab facilities. A number of individuals gave their life savings to take part. Those who paid were promised they would generate net profits of $350,000 or more in the first few years. Many of the facilities never opened at all, reported the Tribune.

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