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In this episode of American Greed, Kenny
Chapman catapults from personal

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trainer to mogul, running a drug
treatment business.

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He made a massive amount of money. We're
talking millions of dollars.

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But something isn't right.

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Chapman seems to have made it far too
big, too fast.

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When you go from making five to six
figures, one year to making $10 million

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the next year, that's an indicator.

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These are things that we look for when
we're doing investigations.

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And Chapman's halfway houses, or sober
homes, are anything but sober.

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Drug use was rampant at the sober homes.
We know that Chapman himself directly

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provided the drug to keep people high.

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And beyond the drugs...

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Chapman further exploits some of his
female clients.

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He was able to twist these women into
becoming prostitutes for him.

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You know, he became a pimp.

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Kenny Chapman hauls in more than $16
million off the backs of vulnerable

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clients.

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Kenny Chapman saw a chance to make a lot
of money and didn't care who he hurt to

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make that happen.

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It wasn't like, you know, he's a really
bad guy.

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It was like the devil himself had walked
in this room.

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It's September 2015.

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And Kenny Chapman is living large.

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He buys a million -dollar mansion in
Boynton Beach, Florida.

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All off the proceeds of his booming drug
rehab business.

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He's making his fortune by seemingly
getting people off of drugs.

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I started using... Like these patients.

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who agreed to appear in this promotional
video for Kenny Chapman's clinic called

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Reflections Treatment Center.

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He's never, never, ever turned his back
on me, never.

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The owner, Kenny Chapman, has really
helped me through a lot.

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I've known him for two years before the
treatment center was even established.

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And, I mean, I call him at two in the
morning, he picks me up.

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Chapman certainly has some people
singing his praises.

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But are his clients really getting
clean?

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Kenny Chapman's facilities had the
reputation that you could use drugs.

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were available.

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There were just certain requirements
about attending treatment so that they

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could bill the client's insurance.

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Kenny Chapman's road to riches starts
modestly as a fitness instructor.

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But the married father of four also has
a growing side business.

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He's operating several halfway houses,
also known as sober homes.

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As the name implies, sober homes are
domiciles where recovering addicts live

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together and are supposed to help each
other stay clean.

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There are usually strict curfews.
There's a house manager usually who

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that everybody's staying clean and
sober.

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There's some neighborhoods where you
have a half dozen sober homes there. The

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good ones you won't even notice.

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And opening a sober home is easy.

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There was no lights and things, no
requirements to open a sober home.

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So you can go down any residential
street in South Florida and take a three

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-bedroom, two -bedroom house.

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Open it today as a sober home.

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While living at a legitimate sober home,
patients should receive outpatient care

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at a licensed treatment center.

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Treatment is administered by a
healthcare professional and includes

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therapy and one -on -one counseling.

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But with Kenny Chapman's sober homes and
the treatment centers he works with,

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a different rehab model is in play.

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With Penny's Places, people knew that
they could go there and get high, and

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did not have to be sober. I mean, he was
preying on these people's addictions

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and profiting off of it.

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Chapman profits by cutting deals with
shady treatment centers.

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He started partnering with these
treatment centers.

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and basically selling his insured
patients to the treatment centers. And

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the treatment center collected money
from the billings that Kenny Chapman

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generated, the treatment centers would
pay money back to Kenny.

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A fraudulent treatment center could be a
money -making bonanza, providing

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limited actual services coupled with
enormous billing, covered by insurance.

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The supposed services provided, the
therapy sessions, the doctor's visits,

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kind of thing, those were billable
services.

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So if you get a lot of kids in the room
and you have this three -hour session,

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or at least you billed a three -hour
session, you're talking $40 ,000 to $50

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,000 in bills just for that therapy
session on that single day.

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Crooked treatment centers also make huge
profits.

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Overbilling for urinalysis drug testing.

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You're taking a $3 cup and turning it
into thousands of dollars in fraudulent

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billing. I mean, that's more than the
markup on crack cocaine.

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Kenny Chapman does the math.

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Why settle for just the kickbacks if you
can get in on the action, too?

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He decides to expand his business and
open his own treatment center.

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But Chapman faces obstacles.

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He has no qualifications.

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And he's got a prior conviction for
credit card fraud.

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The important thing about that was that
it prohibited him from being involved in

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the substance abuse treatment center as
an owner, as anybody who had contact

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with patients.

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But Chapman cleverly buries his past by
putting the business in the name of his

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wife, Laura, who was seen with him in
this photo from a treatment center

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directory.

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Then he finds physicians willing to sign
on as staff professionals.

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To open a treatment center, you need to
have a medical director and a clinical

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director. And he was able to find people
to do that early on.

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Some of these doctors at the beginning,
I don't think knew what they were

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getting into.

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And so in January 2014,

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Laura Chatman opens Reflections
Treatment Center in Margate, Florida.

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But Laura's involvement is in name only.

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Reflections is Kenny's baby.

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And he gets busy sending his sober home
tenants to Reflections.

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for his brand of drug treatment and sky
-high insurance claims.

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That's the whole thing, is you don't
make any money if these people don't

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insurance. And the better the insurance
plan, the more money you make off of it.

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But if their insurance starts to run
out, Chapman's Treatment Center,

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Reflections, offers a sinister kind of
fix.

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He actually would encourage relapses.
That would allow reflections to call the

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insurance company and say, Joey relapsed
on heroin.

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We need to continue to treat him. And
that might allow them to get two more

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weeks or a month more of approved
treatment.

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A relapse can be worth tens of thousands
in additional billing.

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And to attract new clients,

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Chapman mirrors the legitimate treatment
industry with evocative advertising,

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as seen here on his website.

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You'd see these beautiful websites.

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You'd see these wonderful pictures of
sunsets, people riding horses, beaches.

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You'd see well -written phrases about
recovery and addictions of disease. And

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turns out that these websites are just
con jobs.

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Jerry and Victoria Smith know the
heartache of drug abuse and false

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Their son Skyler battles heroin
addiction.

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Skyler grows up in the Northeast, the
older of two sons.

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Everybody who knew him said, what a
bright kid. He was involved in so many

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things. He loved sports. He was on t
-ball, baseball.

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He started playing piano at the second
grade.

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He could remember pages and pages of
classical music without even really

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studying it.

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There was a lot of great sides to
Schuyler.

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At 16, Schuyler gets a part -time job,
working with older kids, and things

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start to change.

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We were actually very excited because he
got a great job for the summer at a

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local resort. He was a busboy, and he
made a lot of money.

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But the other side of that was a lot of
these college kids would stay out late

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and party.

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We started seeing that he was maybe
drinking, and then substances started to

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come in. I would notice something.

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crunched up or cracked up on a mirror in
his room like he was snorting

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something.

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We're realizing that there's drugs
involved and we can't help him.

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After high school, Skyler's drug abuse
progresses to heroin.

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He stole our car.

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He was losing weight, things like that.
His looks were changing.

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And our world was crumbling and falling
apart at that point.

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I can tell you times where I was under
the table crying because my son called

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up. He was high somewhere and I couldn't
do anything.

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And there were times that I was driving
in the middle of the night trying to

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find him.

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Local rehab fails.

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And after meeting with therapists, the
Smiths decide to send Skyler to Florida

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for drug treatment.

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I was so naive. I actually packed him
Ralph Lauren shirts and the shorts and,

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you know, khakis. I even sent a tie with
him. Maybe he'll wear it to one of the

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meetings there, you know.

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And so we thought this was going to be
sort of like a one and done, send him

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down there.

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He's going to recover in a spa -like
setting.

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And this is the magic bullet.

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But the Smiths learn the cruel truth.

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There is no magic bullet.

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Especially when your son gets caught up
with Kenny Chapman.

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Next on American Greed, Kenny Chapman's
business is booming, but the

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actual treatment is a sham.

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Patients clearly being high, not being
able to just go through the motions of

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the treatment sessions.

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In southeast Florida, Kenny Chapman is
busy filling his rehab facilities with

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addicts struggling to get off drugs.

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Like Skyler Smith from Philadelphia.

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When you have a child in the active
throes of addiction, you no longer have

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son.

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Near Columbus, Ohio, Michelle Curran
also lives a parent's nightmare.

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Her daughter, Micaiah, is addicted to
heroin.

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When I first learned that she had a
problem, you're so scared for them,

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So your mind's going 100 miles an hour.

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You don't know what to do.

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You don't know where to turn.

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You want to be able to fix it. I could
fix everything for her when she was

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little, and I couldn't fix it.

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And that's hard.

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That's hard.

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At age 15, Micaiah is prescribed opiates
after she has an operation to remove a

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cyst from her lower back.

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The pain was just intense.

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So she was on Vicodin probably for three
weeks or so.

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I can remember this, them saying that
she could take two at a time every four

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hours, which for a 15 -year -old, that's
a lot.

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Micaiah recovers from the surgery.

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and moves on with her active young life.

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She was actually considered gifted, and
Micaiah actually attended college while

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she was in high school to give her that
challenge.

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She got very bored in high school.

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By age 20, Micaiah has two sons.

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She loves her boys, but her second
pregnancy aggravates that pain in her

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back.

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McKay would just describe it as this
terrible, terrible pain.

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And the further she got along in her
pregnancy, the worse it seemed to get.

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The young mother struggles with chronic
discomfort.

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She was taking pain pills, so your
Vicodin, your Percocet.

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She was taking more and more.

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You know, you get used to that, whatever
dose it would be.

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And at some point, your body needs
something stronger.

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someone actually shot her up with heroin
and said, this will take it away.

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And it was, from there on, it was
downhill.

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Michelle takes custody of her grandsons
and sends her daughter to Florida to get

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clean and sober.

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After relapsing, her mother says Micaiah
is making progress at a legitimate

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treatment center and sober home.

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Things are looking up.

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Until one day after a sobriety meeting,
Micaiah gets a tempting offer.

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A girl was there and said that, hey, if
you come live here, all you have to do

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is go find people to live here and
they'll pay you like $300 a week.

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Really laid back. It's pretty cool.

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Micaiah falls for the pitch.

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She enrolls at Chapman's Treatment
Center and moves into one of his sober

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That's a bad choice for an addict like
her, struggling with sobriety.

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They're in a very delicate place
because, you know, every day, every

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their life, they're hearing this voice
in their head that's telling them to use

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drugs, use drugs, use drugs. But when
you have somebody that's sleeping in the

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bed next to you using drugs, you have
almost no chance of resisting.

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And the supposed treatment at
Reflections is spotty at best.

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And often, it's non -existent.

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She wasn't having the therapy sessions
like she should have been. They weren't

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getting to the root cause of her
addiction.

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Instead, they were just feeding the
addiction and using her because she had

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insurance.

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We talked to insiders that described
patients as nodding off, patients

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being high, intoxicated, not being able
to just go through the motions of the

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treatment sessions.

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In fact, the treatment at Reflections is
most effective in just one area,

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billing.

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Chapman's corrupt physicians write
standing orders for treatment.

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lending the appearance of legitimacy to
those massive bills.

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Without that doctor's signature, that
test doesn't happen. The insurance bill

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isn't submitted, the insurance bill
isn't claimed, and nobody involved gets

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kickbacks that they were promised.

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Chapman is making more than $100 ,000 a
week.

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He and his wife, Laura, buy a mansion in
Boynton Beach, Florida.

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00:17:52,400 --> 00:17:58,240
and portray themselves in promotional
materials as models of success.

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00:17:59,800 --> 00:18:06,680
He and his wife cultivated a lifestyle
and made millions of

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00:18:06,680 --> 00:18:12,500
dollars. They had beautiful homes, cars,
jewelry, vacation. They had a beautiful

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00:18:12,500 --> 00:18:17,700
lifestyle all off the backs of our
children, our loved ones.

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00:18:21,000 --> 00:18:26,320
Next on American Greed, Kenny Chapman
consoles worried parents that their

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00:18:26,320 --> 00:18:29,460
addicted children are safe with him.

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00:18:29,920 --> 00:18:31,680
People who are taking drugs lie.

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00:18:32,200 --> 00:18:37,020
But you never think that the therapists
and the administrators of these places

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00:18:37,020 --> 00:18:38,020
are lying.

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00:18:54,440 --> 00:18:58,840
For Kenny Chapman, the money from his
bogus drug treatment business is pouring

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00:18:58,840 --> 00:18:59,840
in.

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00:19:01,060 --> 00:19:07,800
To keep his scam operating and growing,
all he needs is more

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bodies with insurance.

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00:19:11,920 --> 00:19:18,660
And to attract new addicts, Chapman
solicits the service of agents known as

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00:19:18,660 --> 00:19:19,660
brokers.

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00:19:20,450 --> 00:19:23,990
That's how Kinney lured Micaiah Fike
into his operation.

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00:19:24,870 --> 00:19:29,810
These recruiters or body brokers would
literally drive up and down the streets

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00:19:29,810 --> 00:19:34,910
of cities like Delray Beach looking for
young people who might have suitcases or

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00:19:34,910 --> 00:19:37,110
bags and looking for a place to stay.

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00:19:37,350 --> 00:19:42,170
And they would approach them and recruit
them with promises of little or no

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00:19:42,170 --> 00:19:45,830
rent, free cigarettes, you just come
stay at my house.

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00:19:46,700 --> 00:19:49,840
If the answer is yes, the next question
is, what kind of insurance do you have?

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00:19:50,320 --> 00:19:53,980
What the body broker will do is they'll
get on the phone with the sober home or

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00:19:53,980 --> 00:19:57,680
the treatment center. They'll say, I got
a Blue Cross Blue Shield plan number

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00:19:57,680 --> 00:19:58,680
123.

260
00:19:58,800 --> 00:20:02,080
They'll get a call back saying the plan
is approved, and they'll bring the

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00:20:02,080 --> 00:20:04,680
patient into the facility, and they'll
get their kickback.

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00:20:07,080 --> 00:20:12,720
Patients recruited to Chapman facilities
soon learn that lax rules and free

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00:20:12,720 --> 00:20:15,420
stuff come with strings attached.

264
00:20:17,640 --> 00:20:21,840
This includes being subjected to
Chapman's cruel authority.

265
00:20:23,480 --> 00:20:30,340
What Kenny Chapman liked to do was
completely alienate a client from

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00:20:30,340 --> 00:20:34,560
their friends and family, anyone that
might actually help them or support

267
00:20:34,700 --> 00:20:39,100
So he confiscated their cell phones,
their car keys.

268
00:20:39,380 --> 00:20:43,600
They had seen him physically throw male
clients out of the house.

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00:20:44,190 --> 00:20:49,350
One of his tactics was to get face -to
-face, right in there, nose -to -nose,

270
00:20:49,430 --> 00:20:52,030
and tell you the things that he could do
to you.

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00:20:54,070 --> 00:21:00,870
When concerned parents call, Chapman
pours on the charm and feigns that all

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00:21:00,870 --> 00:21:01,870
well.

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00:21:02,050 --> 00:21:06,950
Kenny Chapman will get on the phone and
convince the parents that the kids were

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00:21:06,950 --> 00:21:10,890
liars and that the kids will benefit
from treatment, that this is just

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00:21:10,890 --> 00:21:12,270
stage in the process.

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00:21:14,510 --> 00:21:16,210
People in recovery lie.

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00:21:16,430 --> 00:21:18,010
People who are taking drugs lie.

278
00:21:18,470 --> 00:21:24,510
But you never think that the therapists
and the administrators of these places

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00:21:24,510 --> 00:21:25,510
are lying.

280
00:21:25,910 --> 00:21:31,110
And part of Chapman's con, as seen in
these photos from the Reflections

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00:21:31,290 --> 00:21:36,790
is that he's also a positive role model
and a pillar of the community.

282
00:21:37,550 --> 00:21:42,090
He started this PR campaign to make
himself look legitimate.

283
00:21:42,520 --> 00:21:47,480
He would donate $1 ,000 to some charity
and have somebody write a press release

284
00:21:47,480 --> 00:21:51,200
and send it out to news organizations or
put it on their websites.

285
00:21:52,620 --> 00:21:59,280
To this end, Chapman gets former NBA
basketball star Keon Dooling to plug

286
00:21:59,280 --> 00:22:03,820
Reflections, as he does here in this
promotional video.

287
00:22:04,830 --> 00:22:08,770
Today I am here at the wonderful
facility called Reflections.

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00:22:09,050 --> 00:22:12,930
It is a treatment center extraordinary
to the 10th power.

289
00:22:14,370 --> 00:22:19,410
American Greed reached out to Mr.
Dooling for comment but received no

290
00:22:21,190 --> 00:22:26,890
It appears that Keon Dooling is just
another mark in the Chapman racket.

291
00:22:29,830 --> 00:22:31,910
Chapman's enterprise is extensive.

292
00:22:32,540 --> 00:22:38,100
With a half dozen sober homes and his
Reflections Treatment Center, he runs it

293
00:22:38,100 --> 00:22:42,240
all with an iron fist to the point of
playing doctor.

294
00:22:43,180 --> 00:22:48,460
Mr. Chapman was at the treatment
facility every single day. He was in

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00:22:48,460 --> 00:22:53,900
meeting. If, for example, a clinical
director recommended that a patient be

296
00:22:53,900 --> 00:22:59,460
transferred to an inpatient detox
facility, Mr. Chapman would overrule

297
00:22:59,460 --> 00:23:00,860
what he decided went.

298
00:23:01,340 --> 00:23:02,340
as law there.

299
00:23:02,800 --> 00:23:06,480
He did hold their medications, and from
what we've seen, it's literally like

300
00:23:06,480 --> 00:23:11,460
having someone's life in your hands
because you're controlling their

301
00:23:11,640 --> 00:23:12,960
you're controlling their recovery.

302
00:23:14,500 --> 00:23:21,060
Next on American Greed, Kenny Chapman's
exploitation of his clients

303
00:23:21,060 --> 00:23:23,100
hits a new low.

304
00:23:23,860 --> 00:23:27,920
He was able to twist these women into
becoming prostitutes for him.

305
00:23:28,140 --> 00:23:29,520
You know, he became a pimp.

306
00:23:41,520 --> 00:23:45,880
In South Florida, Kenny Chapman's drug
rehab empire is thriving.

307
00:23:47,440 --> 00:23:49,780
But there are cracks in the facade.

308
00:23:51,020 --> 00:23:53,040
Patients aren't recovering.

309
00:23:56,000 --> 00:24:01,640
21 -year -old Skyler Smith is battling a
heroin addiction while living a

310
00:24:01,640 --> 00:24:04,340
tortured existence at Kenny Chapman's
facilities.

311
00:24:06,320 --> 00:24:10,900
He's a thousand miles away from his
family in Philadelphia when his mother,

312
00:24:10,980 --> 00:24:12,980
Victoria, gets a call.

313
00:24:14,140 --> 00:24:20,660
Unfortunately, in my world, a phone call
from Florida is like that PTSD moment,

314
00:24:21,000 --> 00:24:25,500
okay? Because nothing good comes from
these phone calls, usually.

315
00:24:25,980 --> 00:24:29,080
The call is from a young woman in
recovery.

316
00:24:29,540 --> 00:24:33,320
She goes, I just escaped from Kenny
Chapman's sober home.

317
00:24:33,710 --> 00:24:38,530
He locks the windows. He locks the
doors. He bolts everything shut. He

318
00:24:38,530 --> 00:24:39,489
cell phones.

319
00:24:39,490 --> 00:24:43,990
I'm calling because Skyler wouldn't come
with me. He didn't want to be homeless.

320
00:24:44,290 --> 00:24:48,130
They're feeding him drugs. I'm afraid
he's going to overdose and die there.

321
00:24:48,250 --> 00:24:50,410
You've got to get him out of this house.

322
00:24:51,410 --> 00:24:54,930
Frantic, Victoria flies to Florida to
retrieve her son.

323
00:24:56,650 --> 00:24:59,730
And Kenny Chapman is nowhere to be
found.

324
00:25:00,840 --> 00:25:07,780
I arrived down to Florida on a Wednesday
and picked Skyler up at Reflections at

325
00:25:07,780 --> 00:25:11,100
9 a .m. I was so relieved to see him. He
was alive.

326
00:25:11,660 --> 00:25:14,520
And he looked rough.

327
00:25:14,760 --> 00:25:20,100
He certainly wasn't the beautiful boy
that just graduated from high school.

328
00:25:20,760 --> 00:25:23,280
And he's clearly high.

329
00:25:25,500 --> 00:25:30,060
The Smith sends Skyler to a legitimate
treatment center in Utah.

330
00:25:30,730 --> 00:25:34,050
Believing that Kenny Chapman is out of
their lives for good.

331
00:25:36,630 --> 00:25:38,690
Months later, Skyler is clean.

332
00:25:39,210 --> 00:25:41,390
But his addiction is still strong.

333
00:25:42,190 --> 00:25:44,390
And so is the lure of Florida.

334
00:25:45,550 --> 00:25:49,450
He's like, I think I have to go back to
Florida to recover. That's where I need

335
00:25:49,450 --> 00:25:50,450
to recover.

336
00:25:51,210 --> 00:25:56,810
Skyler falters and calls Kenny Chapman.
I think he wanted to use again.

337
00:25:57,600 --> 00:26:02,040
All right. Because that addiction was
still there. I mean, unless you have a

338
00:26:02,040 --> 00:26:07,680
good solid maybe year or two, you're
still in that danger zone. And that

339
00:26:07,680 --> 00:26:08,680
is still strong.

340
00:26:09,740 --> 00:26:15,200
Chapman buys a plane ticket for Skyler
and flies him back to Florida and into

341
00:26:15,200 --> 00:26:16,240
the Chapman system.

342
00:26:18,720 --> 00:26:21,680
Within days, Skyler is using heroin
again.

343
00:26:25,400 --> 00:26:26,400
Months pass.

344
00:26:27,200 --> 00:26:30,960
Until a broker finally sends him to
detox where he's plied with medication.

345
00:26:32,500 --> 00:26:34,360
Things only get worse.

346
00:26:36,140 --> 00:26:43,060
And it's been substantiated now through
doctors and reports

347
00:26:43,060 --> 00:26:50,000
that they over -medicated our son with a
cocktail of dangerous

348
00:26:50,000 --> 00:26:51,000
medications.

349
00:26:53,100 --> 00:26:58,640
Skyler flees detox, dazed and confused
from the combination of meds.

350
00:27:00,100 --> 00:27:01,460
Oh, it's a catastrophe.

351
00:27:01,740 --> 00:27:05,400
If you get the wrong meds, if you have
someone that's mentally unstable, you

352
00:27:05,400 --> 00:27:06,480
push them over the edge.

353
00:27:06,680 --> 00:27:12,280
They can end up back on the street
seeking out street narcotics. I mean,

354
00:27:12,280 --> 00:27:13,280
danger is that they end up dead.

355
00:27:16,220 --> 00:27:21,060
One day later, Skyler is arrested,
charged with robbing a business.

356
00:27:23,850 --> 00:27:28,330
He's sent to jail in Okeechobee,
Florida, while the investigation

357
00:27:29,430 --> 00:27:36,130
The collateral damage that has been done
by Kenny Chapman and

358
00:27:36,130 --> 00:27:42,650
the other facilities in Florida to the
parents, to the siblings, is

359
00:27:42,650 --> 00:27:43,650
insurmountable.

360
00:27:44,730 --> 00:27:48,650
Kenny Chapman is at the height of his
depraved success.

361
00:27:50,000 --> 00:27:56,300
And he's exploiting some of his female
clients in a new way, through the

362
00:27:56,300 --> 00:27:57,460
oldest profession.

363
00:27:58,480 --> 00:28:05,440
These are girls who are 18 to 22, 23
years old. They're addicted

364
00:28:05,440 --> 00:28:06,440
to drugs.

365
00:28:06,480 --> 00:28:08,080
They've already been abused.

366
00:28:08,600 --> 00:28:12,840
by the system, by becoming addicts and
going through everything that that

367
00:28:12,840 --> 00:28:18,800
involved. And they're trying to get
better. And instead, he saw a way to use

368
00:28:18,800 --> 00:28:21,040
them and their bodies to make money.

369
00:28:21,940 --> 00:28:27,760
Some of the women are moved to a female
-only sober home north of Palm Beach.

370
00:28:28,700 --> 00:28:35,600
Eventually, he kept these women captive
in a home and would have the men come

371
00:28:35,600 --> 00:28:37,400
to the home and rape them.

372
00:28:38,160 --> 00:28:39,620
And keep them high while doing it.

373
00:28:43,740 --> 00:28:48,480
Then, in April 2015, a turning point.

374
00:28:49,360 --> 00:28:54,420
A young woman escapes Chapman's brothel
and divulges everything to local law

375
00:28:54,420 --> 00:28:56,460
enforcement and the FBI.

376
00:28:57,960 --> 00:29:02,780
She relayed to us that while she was in
Kenny Chapman's care, she was actually

377
00:29:02,780 --> 00:29:06,960
confined to the house, kept high on
drugs, and...

378
00:29:07,550 --> 00:29:11,950
She was forced to engage in prostitution
with unknown male individuals who were

379
00:29:11,950 --> 00:29:12,749
brought over.

380
00:29:12,750 --> 00:29:17,470
I interviewed several women who had
escaped from him and were deathly

381
00:29:17,470 --> 00:29:22,890
of him. He had a psychological hold on
these women, which was truly sinister.

382
00:29:24,930 --> 00:29:30,330
By now, the opioid and rehab crisis is
spilling out all over South Florida.

383
00:29:37,550 --> 00:29:42,890
in fraud amounts, but we also saw the
number of overdoses that were happening

384
00:29:42,890 --> 00:29:45,650
associated with these quote -unquote
sober homes.

385
00:29:47,010 --> 00:29:51,130
We realized we had an epidemic in our
own backyard that we had to address.

386
00:29:52,310 --> 00:29:58,070
The FBI launches a wide investigation,
and one name keeps popping up.

387
00:29:58,770 --> 00:30:04,290
It was startling how many individuals we
were talking to would say, what are you

388
00:30:04,290 --> 00:30:05,330
guys doing about Kenny Chavin?

389
00:30:09,140 --> 00:30:13,760
Next, Kenny Chapman's greed has tragic
consequences.

390
00:30:15,160 --> 00:30:20,480
We received a call from the Boynton
Police Department, and I knew.

391
00:30:21,380 --> 00:30:23,040
I knew what happened.

392
00:30:32,720 --> 00:30:37,660
In South Florida, Kenny Chapman and his
drug rehab business draw the attention

393
00:30:37,660 --> 00:30:40,240
of law enforcement and the media.

394
00:30:42,960 --> 00:30:47,440
Journalist Lawrence Maurer does
extensive reporting on Kenny Chapman.

395
00:30:48,340 --> 00:30:53,380
It was not hard to find people who had
their own horror stories of dealing with

396
00:30:53,380 --> 00:30:56,760
Kenny Chapman who felt that the guy was
a psychopath.

397
00:30:57,140 --> 00:30:59,980
I had a probe of police records on this
guy.

398
00:31:00,590 --> 00:31:02,110
More than 100 pages of police reports.

399
00:31:02,370 --> 00:31:06,770
An incident in South Florida where he
had stolen people's cell phones.

400
00:31:06,970 --> 00:31:09,250
All kinds of trouble going on in the
sober homes.

401
00:31:14,990 --> 00:31:18,750
Welcome to Reflections Treatment Center.
We're located in... Chapman is

402
00:31:18,750 --> 00:31:21,770
notorious for putting forth an
impressive facade.

403
00:31:23,270 --> 00:31:27,830
Outwardly, everything seems legitimate,
as shown in this video from the

404
00:31:27,830 --> 00:31:28,830
Reflections website.

405
00:31:30,570 --> 00:31:34,590
But we also believe very much in healing
the mind, body, and the spirit.

406
00:31:35,150 --> 00:31:38,950
Dr. Barry Gregory is Reflections'
clinical director.

407
00:31:39,230 --> 00:31:43,410
He touts the holistic care offered at
Reflections.

408
00:31:43,890 --> 00:31:48,730
We really believe that our job is to
save lives, and frankly, that's what

409
00:31:48,730 --> 00:31:49,730
doing.

410
00:31:51,150 --> 00:31:57,290
And as for Chapman's satisfied clients,
appearing in this Reflections video, not

411
00:31:57,290 --> 00:31:59,470
all may be as it seems.

412
00:32:00,440 --> 00:32:07,180
Staff, everybody is friendly and, you
know, it's more like a family. They

413
00:32:07,180 --> 00:32:08,800
help you as much as they can.

414
00:32:11,400 --> 00:32:15,620
We interviewed several clients who
confirmed that that was them in the

415
00:32:15,620 --> 00:32:17,800
testimonial videos and they were high at
the time.

416
00:32:19,420 --> 00:32:25,240
Concerned parents are discovering the
truth about Chapman's facilities, that

417
00:32:25,240 --> 00:32:29,340
treatment is poor and their loved ones
are in danger.

418
00:32:29,820 --> 00:32:31,920
They're giving you drugs to keep you
high.

419
00:32:32,820 --> 00:32:33,920
Took all of her meds.

420
00:32:34,160 --> 00:32:35,160
Took her phone.

421
00:32:35,340 --> 00:32:36,340
Stealing her things.

422
00:32:36,580 --> 00:32:37,860
Having them lie to us.

423
00:32:38,580 --> 00:32:39,760
Nobody would talk to me.

424
00:32:40,780 --> 00:32:43,540
If I need to talk to the owner, I want
to talk to who's running the house.

425
00:32:45,280 --> 00:32:49,560
Michelle Curran is worried that her
daughter, Micaiah, has relapsed.

426
00:32:50,160 --> 00:32:54,820
Her repeated calls to reflections are
either unanswered or dismissed.

427
00:32:57,689 --> 00:32:59,730
Michelle's fears are justified.

428
00:33:00,610 --> 00:33:02,650
Micaiah is using heroin again.

429
00:33:04,930 --> 00:33:10,510
In July of 2016, Micaiah and a boyfriend
are suddenly evicted from a Chapman

430
00:33:10,510 --> 00:33:11,510
sober home.

431
00:33:13,730 --> 00:33:17,590
While still high, they're dumped at a
seedy motel.

432
00:33:19,450 --> 00:33:25,210
It's in a really bad part of town, and
just dropped him off there.

433
00:33:25,790 --> 00:33:29,030
and told them they were on their own,
basically, at like 2 or 3 in the

434
00:33:30,310 --> 00:33:36,390
Micaiah shoots up again, unaware that
the heroin is laced with carfentanil, an

435
00:33:36,390 --> 00:33:38,310
extremely powerful sedative.

436
00:33:40,510 --> 00:33:45,130
The following night, Michelle and her
husband, Chuck, are awakened by

437
00:33:45,130 --> 00:33:48,910
deputies and a victim's advocate at
their home in Ohio.

438
00:33:51,090 --> 00:33:57,470
He said, We received a call from the
Boynton Police Department, and I knew.

439
00:33:58,670 --> 00:34:04,970
I knew what happened. And they said,
your daughter was found in a motel,

440
00:34:04,970 --> 00:34:11,889
and she's passed away, and Chuck and I
just lost it. I mean,

441
00:34:12,030 --> 00:34:15,810
that was awful.

442
00:34:16,030 --> 00:34:17,650
I remember it like it was last night.

443
00:34:18,830 --> 00:34:21,949
It's hard because you don't ever want to
hear that.

444
00:34:23,500 --> 00:34:24,780
that your child is gone.

445
00:34:27,000 --> 00:34:32,679
Micaiah Fyke leaves behind grieving
friends, parents, and two young boys.

446
00:34:35,080 --> 00:34:41,100
Her death is not the first fatality
linked to Kenny Chapman, nor will it be

447
00:34:41,100 --> 00:34:42,100
last.

448
00:34:45,520 --> 00:34:48,199
Three months later...

449
00:34:49,220 --> 00:34:56,100
24 -year -old Allison Flory dies from a
heroin overdose inside a Chapman sober

450
00:34:56,100 --> 00:34:57,100
home.

451
00:34:58,500 --> 00:35:04,200
And at that point, we decided all the
FBI task force resources would now be

452
00:35:04,200 --> 00:35:06,100
poured into the Kenny Chapman
investigation.

453
00:35:07,540 --> 00:35:11,400
To build their case, investigators have
to follow the money.

454
00:35:11,700 --> 00:35:16,260
We got the court orders to get the
patient medical records and the paper

455
00:35:16,500 --> 00:35:21,980
And what we started to find was, The
evidence of Kenny Chapman's crimes were

456
00:35:21,980 --> 00:35:23,120
right there in the patient files.

457
00:35:23,400 --> 00:35:28,080
When an employee of Reflections
Treatment Center provides their own

458
00:35:28,080 --> 00:35:32,920
different patient and there's a claim
submitted under that patient, that right

459
00:35:32,920 --> 00:35:33,920
there is fraud 101.

460
00:35:36,960 --> 00:35:43,420
Next on American Greed, law enforcement
takes down Kenny Chapman and his corrupt

461
00:35:43,420 --> 00:35:44,420
empire.

462
00:35:44,780 --> 00:35:45,880
The case was extensive.

463
00:35:46,220 --> 00:35:47,840
I mean, they had him dead to rights.

464
00:36:06,190 --> 00:36:11,830
By December 2016, at least five overdose
deaths have been linked to Kenny

465
00:36:11,830 --> 00:36:14,090
Chapman and his drug treatment
facilities.

466
00:36:15,850 --> 00:36:21,110
After building a strong case against
him, law enforcement moves in.

467
00:36:21,350 --> 00:36:27,730
In one operation, we had multiple
arrests and search warrants. We arrested

468
00:36:27,730 --> 00:36:32,210
only Mr. Chapman, but a lot of
associates, sober home managers, a

469
00:36:32,210 --> 00:36:33,450
employees that he had.

470
00:36:35,800 --> 00:36:40,640
Investigators find shocking evidence of
Chapman's negligence.

471
00:36:41,020 --> 00:36:45,660
We found evidence that further supported
not only the healthcare fraud, but also

472
00:36:45,660 --> 00:36:49,320
the human trafficking portion of the
case. We found patients prescribed

473
00:36:49,320 --> 00:36:54,060
medications that were locked up in safes
controlled by Kenny Chapman. We found

474
00:36:54,060 --> 00:36:58,440
evidence of unnecessary testing that was
being done that can be billed at a high

475
00:36:58,440 --> 00:37:01,260
amount. There were dozens of...

476
00:37:01,600 --> 00:37:05,160
Private insurance companies that were
defrauded, and the largest victims were

477
00:37:05,160 --> 00:37:10,020
the largest insurance companies, Blue
Cross Blue Shield, Aetna, United Health,

478
00:37:10,120 --> 00:37:11,120
etc.

479
00:37:12,060 --> 00:37:15,340
The fraud totals more than $16 million.

480
00:37:18,160 --> 00:37:21,680
And beyond the money, there are the
broken lives.

481
00:37:23,080 --> 00:37:27,600
Repeated stories of struggling addicts
who failed to receive even remotely

482
00:37:27,600 --> 00:37:29,000
adequate treatment.

483
00:37:31,240 --> 00:37:32,440
The case was extensive.

484
00:37:32,800 --> 00:37:34,400
I mean, they had him dead to rights.

485
00:37:34,720 --> 00:37:36,780
They had him trafficking women.

486
00:37:37,200 --> 00:37:40,200
They had him cheating on these drug
tests.

487
00:37:40,440 --> 00:37:45,120
They had former employees who were
cooperating with them against Kenny.

488
00:37:45,120 --> 00:37:47,820
doctors knowingly falsifying records.

489
00:37:48,220 --> 00:37:49,480
I mean, they had him.

490
00:37:50,600 --> 00:37:54,100
Kenny Chapman faces a possible life
sentence.

491
00:37:55,640 --> 00:38:00,260
To avoid a trial, Chapman pleads guilty
to health care fraud.

492
00:38:01,190 --> 00:38:03,850
money laundering, and sex trafficking.

493
00:38:05,550 --> 00:38:09,970
He believes he's facing a maximum of 15
years in prison.

494
00:38:13,530 --> 00:38:17,270
At the sentencing hearing, emotions run
high.

495
00:38:18,530 --> 00:38:22,930
The hearing was difficult to sit
through. It was an emotional hearing for

496
00:38:22,930 --> 00:38:25,290
of the families, for pretty much
everyone in the courtroom.

497
00:38:25,530 --> 00:38:26,530
It was very powerful.

498
00:38:27,630 --> 00:38:32,710
Kenny Chapman enters the courtroom in
shackles and is seated near the family.

499
00:38:33,890 --> 00:38:37,730
We finally get into the courtroom.

500
00:38:38,550 --> 00:38:39,550
Doors close.

501
00:38:40,070 --> 00:38:41,810
Kenny Chapman comes out.

502
00:38:43,070 --> 00:38:46,570
It wasn't like, you know, he's a really
bad guy.

503
00:38:46,810 --> 00:38:50,630
It was like the devil himself had walked
in this room.

504
00:38:53,610 --> 00:38:59,450
The judge allows victim impact
statements from a procession of grieving

505
00:38:59,450 --> 00:39:00,810
members and victims.

506
00:39:02,090 --> 00:39:06,970
The president were parents and family
members of young people that died in

507
00:39:06,970 --> 00:39:11,930
Chapman's care, and they were overcome
with emotion to where they couldn't even

508
00:39:11,930 --> 00:39:18,090
speak. But some that were very angry
spoke directly to him with rage, really,

509
00:39:18,170 --> 00:39:21,590
that, you know, he treated their kids in
this manner.

510
00:39:22,760 --> 00:39:27,740
A young man in handcuffs, Skyler Smith,
reads a letter to the judge.

511
00:39:28,500 --> 00:39:34,140
Skyler has been accused of robbery after
getting brokered to a detox center.

512
00:39:35,520 --> 00:39:42,220
And then out of my son's mouth comes
these words about how he was treated,

513
00:39:42,220 --> 00:39:46,160
the fact that he had his medication
taken away from him, about the fact that

514
00:39:46,160 --> 00:39:48,780
they were given drugs, that he had no
food.

515
00:39:49,120 --> 00:39:50,600
They'd lock him out of the house.

516
00:39:52,550 --> 00:39:56,190
And at the end of my son's talk to the
judge, he turns and he says, you know,

517
00:39:56,230 --> 00:40:01,930
this guy has blood on his hands. And I
am here to be a testimony to the people

518
00:40:01,930 --> 00:40:06,490
who died and to the women that were
raped that this guy did it.

519
00:40:08,650 --> 00:40:15,250
And Kenny is sitting there in his blue
jumpsuit, hands and ankles shackled,

520
00:40:15,250 --> 00:40:16,890
staring straight ahead, completely
emotionless.

521
00:40:17,830 --> 00:40:20,290
The victim's statements are persuasive.

522
00:40:21,840 --> 00:40:27,200
The judge responds by handing Kenny
Chapman an additional 12 plus years.

523
00:40:28,180 --> 00:40:34,860
A 27 and a half year sentence in federal
prison with no chance for

524
00:40:34,860 --> 00:40:35,860
parole.

525
00:40:37,120 --> 00:40:40,920
Kenny's wife, Laura Chapman, also
appears in court.

526
00:40:42,360 --> 00:40:48,440
Through sobs of apology, Laura pleads
guilty to making false statements in

527
00:40:48,440 --> 00:40:49,560
establishing the business.

528
00:40:50,460 --> 00:40:53,200
She is sentenced to three years in
prison.

529
00:40:55,660 --> 00:41:02,660
As for Chapman's other accomplices, the
crooked doctors, sober home managers,

530
00:41:02,780 --> 00:41:09,760
and body brokers, they get sentences
ranging from 18 months to 10 years.

531
00:41:11,020 --> 00:41:15,560
We charged and convicted seven
individuals in addition to Mr. Chapman.

532
00:41:16,180 --> 00:41:18,600
American Greed contacted Chapman's
attorney.

533
00:41:19,360 --> 00:41:20,520
But he had no comment.

534
00:41:23,560 --> 00:41:29,940
The result of Kenny Chapman and other
drug treatment frauds is that South

535
00:41:29,940 --> 00:41:36,900
Florida has created a sober homes task
force to shut down criminals in the drug

536
00:41:36,900 --> 00:41:37,900
rehab industry.

537
00:41:39,440 --> 00:41:45,780
The big legacy from the Kenny Chapman
saga and catastrophe is that we got the

538
00:41:45,780 --> 00:41:50,300
Silver Homes Task Force. I mean, we got
state funding to go after and arrest

539
00:41:50,300 --> 00:41:52,400
people that are committing these
treatment crimes.

540
00:41:52,640 --> 00:41:57,100
I mean, there's been 50 arrests, 200
facilities have shut down.

541
00:41:59,960 --> 00:42:03,800
Nothing scares people more than the
threat of them being locked up.

542
00:42:04,480 --> 00:42:05,680
And that's what happened to Kenny.

543
00:42:06,460 --> 00:42:11,520
He goes from nobody to multimillionaire
in four years, and he's going to be

544
00:42:11,520 --> 00:42:14,500
spending pretty much the rest of his
life in federal prison.