Local business owner indicted after receiving $3 million by patients seeking addiction treatment


PIKE COUNTY, KY (WOWK) – A local business owner has been indicted after he allegedly received over $3 million in cash paid to him by patients seeking treatment for addiction.

Eugene Sisco III, owner of several rehabilitation facilities in Pike, Floyd and Harlan counties allegedly illegally charged patients cash for serviced that were covered by Medicaid and fraudulently billing Medicaid.

Federal search warrants were completed on five of his businesses.

This was a joint investigation by Appalachia Narcotics Investigations, Diversion Enforcement Task Force, the FBI HEAT Task Force (All Appalachia HIDTA Task Forces) and the United States Attorney’s Office in Lexington, Ky. They were assisted by the Kentucky State Police, Harlan County Sheriff’s Office, Harlan Police Department and the Kentucky Office of the Attorney General Medicaid Fraud Control Unit.

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