Bought and Broken: The Black Market Rehab Empire Preying on Native Americans
Inside the shadow industry that lures people into white vans, exploits their suffering for billions, and leaves families desperately searching for their missing children.
A Crisis Hidden in Plain Sight
“I’ve been covering the opioid crisis for a long time,” says journalist Mariana van Zeller. “And I kept hearing horror stories about rehab.”
Her Trafficked investigation uncovered more than neglect — she found an industrial-scale scheme that turns human pain into profit. In Arizona and California, fraudulent sober living homes and rehab centers target Native Americans as “prizes” because of their access to the American Indian Health Program (AIHP).
During COVID, enrollment rules were relaxed so Native people could be insured almost instantly. What began as an emergency public health lifeline became a loophole worth billions.
“Back in the day, Native Americans had a bounty on their head,” one former recruiter confessed.
“To this day, Native Americans still have money signs on their back. They’re worth something to these operators.”
White Vans and Broken Promises
On reservations across the Southwest, plain white vans circle like predators.
Recruiters promise “free housing, free meals, free treatment” — but the reality is abandonment and exploitation.
Some are given alcohol on the drive, ensuring compliance.
IDs and insurance cards are collected immediately.
Instead of recovery, patients are dumped into overcrowded homes with little to no treatment.
For some, these vans are the last place they are ever seen.
One Navajo mother prayed through tears:
“I ask every father to reunite me with my son, Christopher.”
Her son Chris, once a happy young man with a bright future, was shuffled between sober homes, spiraled into fentanyl use, and then vanished. His parents knocked on doors, called facilities, begged for answers. “I trusted the system and now I feel like I was had,” his father said. “I just want my baby home.”
A Multi-Billion Dollar Scheme
The scale is staggering.
Arizona alone has lost nearly $3 billion to these scams.
Operators billed up to $2,500 per patient per day, five days a week.
Whistleblowers revealed spreadsheets showing $859,000 billed in a single week by one operator.
Christina Bly, the sister-in-law of an Arizona rehab owner, admitted:
“We billed for people who weren’t even there. Some were in jail, others in the hospital. I’d call it fraud — absolutely.”
One recruiter testified he was paid $200 cash per head to bring in Native Americans, specifically asking if they were on the American Indian Health Plan. If not, staff would sign them up on the spot.
This wasn’t about healing. It was about “heads in beds” and insurance money.
Families Torn Apart
California: The “Rehab Riviera”
While Arizona scams rely on Medicaid loopholes, Southern California markets itself as paradise rehab.
“They tell you how beautiful Malibu is, the beaches,” said Captain Vlad, an insurance fraud investigator. “But behind it, 10% of facilities are doing something wrong.”
Here, private insurance is the jackpot. Young people like Daphne became pawns in cycles of detox → sober living → relapse → detox.
Clients were sometimes even paid or given drugs to test dirty, so facilities could re-admit them and bill again.
“They’d give us hotel rooms, drugs, and Narcan and say, ‘Don’t die. We’ll be back in the morning,’” Daphne recalled.
The Players: From Ramada Inns to Malibu Mansions
Dennis Artis (NewFound Hope): Ran a suspended Arizona program out of a former hotel, denying wrongdoing even after whistleblowers showed fraudulent billing.
Nathan Young (aka Pablo Lopez): A California operator tied to dozens of facilities. Former staff accused him of weaponizing addiction for profit, running a revolving door that trapped young clients. His PR team threatened to sue reporters, but lawsuits (including from Aetna) continue piling up.
Why Native Americans Are Targeted
Native Americans are uniquely vulnerable:
AIHP reimbursement rates are high.
During COVID, one phone call could secure coverage.
Recruiters view Native clients as “high-value prizes.”
“Every file on my desk is another missing person,” activist Reva Stewart said.
“Almost all of them were last seen at a sober home.”
Her work has drawn threats. “When you start playing with someone’s money, they get angry,” she said. She now carries a gun when searching for the missing.
A System That Rewards Fraud
Authorities know the problem but lack teeth.
In California, fraudsters risk fines of $10,000 against millions in profit.
Enforcement actions lag behind name changes and shell companies.
In 2023, Arizona suspended 100+ providers and indicted 45 — yet white vans kept rolling.
As Captain Vlad put it:
“Anytime there’s millions of dollars, people are willing to do things you’d never imagine — even letting someone die from an overdose, or worse, silencing those who expose them.”
Conclusion: Human Lives for Sale
This isn’t healthcare. It is human trafficking under the cover of treatment.
From the white vans on reservations to the luxury homes in Malibu, the message is clear: people battling addiction have become commodities.
For Native parents like Tim and Deb, holding a photo of their missing son Christopher, the cost isn’t measured in billions. It’s measured in empty chairs at the dinner table and prayers whispered into the night.
“I just want my baby home,” Deb said through tears.
“I just want to hold him again.”
References
Dark Side of Rehab: A Revelation (2025). Transcript of Trafficked with Mariana van Zeller.
ProPublica. (2023). “Arizona’s Medicaid Fraud Crisis in Sober Living Homes.”
Associated Press. (2023). “Arizona indicts owners of sober living homes in Medicaid fraud scheme.”
Arizona Health Care Cost Containment System (AHCCCS). (2023). “Sober Living Fraud Response.”
FBI Phoenix Field Office. (2023). “AI/AN group home victim intake.”
National Geographic. (2024). Trafficked: The Great American Rehab Scam (Documentary).
