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FBI raids Sovereign Health center in Palm Desert

Federal agents raided the local branch of a major rehab center Tuesday afternoon, along with several other locations in California. Agents were seen removing items from the offices at Palm Desert Sovereign Health center, located at 39800 Portola Drive.

According to the company’s website, Sovereign Health’s Palm Desert location provides evidence-based, effective treatment for mental health and substance use disorders. The Palm Desert Sovereign Health center is located at 39800 Portola Drive.

KESQ News Channel 3 and CBS Local 2 couldn’t tell exactly what was being removed from the offices Tuesday afternoon. FBI officials said they are investigating criminal activity but they weren’t expecting to arrest anyone on Tuesday.

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Joe Galli met with a woman who claimed to be a former patient at the center, and she said she believed Sovereign Health was double dipping when charging her insurance company. She also told Galli that when other patients insurance would run out, Sovereign Health would kick them out of treatment.

“They would charge treatments day by day about $7550, if it was a weekend they would charge you about $9100, so it just depended on the day and the level of care you were receiving and what house you were staying at and how nice that house was,” said Lauren, who did not want to share he complete identity.

“I was there for 45 days and I don’t think it was worth the $250,000 [charged to her insurance]. I saw multiple charges for the $7550 and I don’t understand where they came from still,” Lauren said.

The FBI has recently been investigating other rehab facilities in Southern California for insurance fraud and for dropping patients. Published reports state the home of the CEO of Sovereign Health has also been searched by the FBI.

None of the current patients KESQ and CBS Local 2 reached out to wanted to speak to us on Tuesday. After calling the company’s corporate number, we were sent to a voicemail box that was full and not accepting new messages.Tom Mrozek with the attorney general’s office said, “Federal, state and local authorities are executing federal search warrants at several locations. The search warrants are under seal, so I cannot provide any details about the investigation.”

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