Kirsten Wallace was sentenced to 11 years in prison after confessing to being part of an “elaborate conspiracy” to mislead patients and insurers in a scheme that totaled $US175 million ($233 million) in bogus claims. The former Mayfield resident was the chief financial officer of Community Treatment Los Angeles, a corporation that operated around 30 drug and alcohol treatment centers in southern California and Colorado. The 44-year-old was arrested in 2016, along with Christopher Bathum, the company’s co-owner, who was accused of the same fraud counts as the 44-year-old and sexually assaulting victims.
Christopher Bathum’s Community Recovery, Los Angeles in California, was shut down when he and his CFO, Kirsten Wallace, were arrested. They collaborated on a complex plot to scam their clients and insurance providers.
‘20/20: Rehab Mogul,’ an ABC News documentary, details a slew of claims filed against Christopher and his organisation. So, if you’re wondering what happened to Kirsten following the incident, you’re in luck.
Kirsten Wallace, who is she?
Kirsten is an Australian native who hails from Coffs Harbour. In 1999, she relocated from the United States to Newcastle, England, to be closer to her mother. Kirsten and her daughter moved to the United States and resided there seven years later.
She soon became the CFO of Christopher’s company, and CRLA was doing reasonably well as a luxury addiction treatment centre for addiction in the early 2010s.
Insurance companies were required to pay for addiction treatment and recovery after the Affordable Care Act was passed in 2012. As a result, everybody having coverage was eligible for $100,000 in monthly payments from the insurance provider, which in some ways enticed rehab owners.
Christopher’s “sober living homes,” as they were known at the time, were unregulated. He operated the facilities using a legal loophole that allowed him to operate them as non-rehabilitation centres.
In the years leading up to their arrest, Christopher and Kirsten ran a complex insurance scheme. They obtained health insurance policies in the patients’ names after taking their identities without their knowledge and misrepresenting about their situations.
They also continued to bill previous clients despite the fact that they had not received therapy while still employed at CRLA. Furthermore, Christopher and Kirsten frequently billed for services that were never rendered.
What happened to Kirsten Wallace and Where Is She?
Between June 2012 and December 2015, authorities suspect Christopher and Kirsten fraudulently billed about $175 million. Five different insurance companies paid a total of $44 million.
Kirsten was charged with five charges of insurance fraud, seven counts of grand theft of personal property, six counts of identity theft, and 28 counts of money laundering in March 2018. She was condemned to 11 years in prison when she was 44 years old. Kirsten is said to be serving her sentence at a California jail prison.