The California Department of Health Care Services has received, over the last few years, a number of complaints that Community Recovery has been running an unlicensed drug and alcohol rehab facility. Inspectors attempted to visit five Community Recovery locations but were denied entry to all of them.
In an application for a warrant to search those houses, state inspectors attached a report written by Blue Shield senior investigator Lisa-Noelle LeGare in February 2015.
"Our investigation strongly indicates [Community Recovery] is engaging in extensive unlicensed residential treatment activity, and in potential patient abuse, fraud and forgery," the report states. "Blue Shield received information from four sources that Christopher Bathum may be supplying drugs to patients and acting in a sexually inappropriate way with female patients."
Bathum calls LeGare a "dip-shit," and tells the Weekly that he "categorically denies" ever getting high or having sex with a client.
The Blue Shield investigation found "strong evidence that suggests [Community Recovery] is engaged in a large-scale fraudulent scheme by recruiting a vulnerable population into its substance-abuse treatment operation by offering financial incentives, including free addiction treatment, room and board and the prospect of employment."
Community Recovery CEO Kirsten Wallace, who is Bathum's longtime business partner, wrote a 10-page, single-spaced response letter to Blue Shield and provided it to the Weekly. In it, Wallace called Blue Shield's allegations "blatantly false."
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