Father-Son Treatment Center Pioneers Accused of Mass Fraud

Father-Son Treatment Center Pioneers Accused of Mass Fraud

By McCarton Ackerman 10/24/14

Alan and Jason Brand are accused of embezzling millions in Medicaid funds.

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A father-son duo became popular in New York City for operating methadone clinics and sober houses throughout the Bronx, but they’re becoming equally well-known for the fraud charges launched against them.

State Attorney General Eric Schneiderman filed charges this week against Alan Brand, 64, and his son, Jason, 35, and began an investigation against them for allegedly embezzling Medicaid funds. The documents filed claim that they used their nonprofit, Narco Freedom, in insurance and extortion schemes. The taxpayer-funded treatment empire, which receives $38 million in Medicaid annually and has $6.3 million in state contracts, was also reportedly used to help fund their lavish lifestyle.

The Brands are accused of filing false documents in order to receive a $3.5 million insurance payout to restore their office in Brooklyn, while Alan also reportedly pocketed over $150,000 per year as a kickback from a developer who rented buildings to Narco Freedom. Both men face grand larceny and insurance fraud charges, while Alan also faces charges of bribery and money laundering.

They pleaded not guilty to all charges against them in Bronx Supreme Court, but it remains unclear whether they will be able to receive bail. Meanwhile, both Schneiderman and city investigators are looking to seize properties that they own in Long Island and Florida, in addition to six luxury automobiles.

Narco Freedom released a statement claiming that Alan was removed as director of the company this July. The company is determined to not let the case affect their daily operations and they will continue “to provide its important drug and alcohol rehabilitation programs as well as mental health and primary care services that are so critical to the communities Narco Freedom serves.”

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McCarton Ackerman is a freelance writer and editor living in Portland, Oregon. He has been a contributor for The Fix since October 2011, writing on a wide range of topics ranging from medical marijuana in Colorado to the world's sexiest drug smugglers. Follow him on Linkedin and Twitter.

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