The 13th Step

Summary

Reveal Podcast: "The 13th Step" Summary

Podcast Information:

• Title: Reveal
• Host/Author: The Center for Investigative Reporting and PRX
• Episode: The 13th Step
• Release Date: June 21, 2025
• Description: Reveal delves into investigative stories that expose societal issues, holding the powerful accountable through gripping narratives. This episode, "The 13th Step," uncovers a sinister culture within addiction treatment centers, highlighting sexual misconduct and massive insurance fraud.

---

Introduction

Host Al Letson opens the episode by referencing a significant investigation initially broken by New Hampshire Public Radio in March 2022. The investigation centered around Eric Spofford, the founder and CEO of New Hampshire's largest addiction treatment network. Spofford had gained prominence by sharing his personal journey of substance use disorder and recovery, becoming a trusted figure in the state's opioid crisis response.

---

Uncovering Eric Spofford’s Misconduct

In early reporting, Lauren Chulgin uncovered serious allegations against Spofford, including multiple acts of sexual misconduct reported by employees and former clients.

• Elizabeth, a former client, recounts how Spofford began sending her explicit messages on Snapchat after she left his treatment center:

  "The day after she left Green Mountain, she says she started receiving messages on Snapchat from Eric Spofford. He was already planning to come to see me, wanted to take me out, wanted to do explicit things."
  [02:12]

• Lauren Chulgin reflects on the depth of Spofford's manipulative tactics, likening his operations to the infamous Harvey Weinstein:

  "I went into this knowing fully well that he had liabilities. I certainly didn't know that he was going to turn out to be like Harvey Weinstein."
  [02:40]

After the initial story aired, Spofford's direct threats escalated when a reporter, Andrea (a pseudonym), reached out, revealing that Spofford's misconduct was part of a broader pattern within recovery communities. This revelation highlighted systemic issues, encapsulated by the term "13 stepper," a derogatory reference to individuals who exploit newcomers in recovery.

---

The Emergence of the 13th Step Podcast

Following escalating threats, including vandalism aimed at reporters and their families, Lauren Chulgin and her team produced a podcast series titled "The 13th Step." This series delved into the pervasive culture of sexual misconduct within addiction recovery communities and the significant personal risks faced by those seeking to expose such abuse.

In a pivotal episode update, Jane Coston and Al Letson discuss recent developments:

• Jane Coston shares Spofford's arrest and conviction:

  "According to the feds, it was Eric Spofford... FBI agents arrested Spofford the last week in May."
  [04:50]

• Jane Coston expresses the emotional impact of witnessing Spofford's downfall:

  "I mean, it's. It was the first time I'd seen him in person... to see him in this federal courtroom, I mean, it was... quite the scene."
  [05:09]

Spofford's Crimes:
The federal investigation revealed that Spofford orchestrated a scheme where he paid employees to vandalize the homes of reporters investigating him, aiming to intimidate and silence them. This revelation underscored the lengths to which Spofford would go to protect his reputation and business interests.

---

Parallel Investigations: Rose Stahl and Debbie Herzog

The heart of "The 13th Step" focuses on two women, Rose Stahl and Debbie Herzog, who independently pursue the truth behind addiction treatment center abuses.

Debbie Herzog’s Investigation into Insurance Fraud

Debbie Herzog, a former federal prosecutor and insurance investigator, begins her investigation after discovering irregular billing practices at Community Recovery Los Angeles (CRLA), led by Chris Batham.

• Debbie Herzog uncovers extensive insurance fraud:

  "Community Recovery popped up at the top of the list and had hundreds and hundreds and hundreds more billings than any other provider on the list."
  [19:21]

Her investigation reveals that CRLA engaged in double and triple billing, fraudulently billing insurance companies for services not rendered. The extent of the fraud eventually totaled $175 million, marking it as one of California's largest health care fraud cases.

Rose Stahl’s Confrontation with Chris Batham

Rose Stahl, initially a client and later an employee at CRLA, becomes suspicious of Batham's unethical behavior amidst rumors of sexual misconduct and drug use with clients.

• Rose Stahl describes her approach to confronting Batham:

  "I ended up believing him."
  [28:45] when Batham denies the allegations during a confrontation.

Rose’s determination leads her to gather incontrovertible evidence against Batham, including discovering drugs and inappropriate handprints in Batham's car, linking him directly to the misconduct.

---

Challenges Faced by Investigators

Both Rose and Debbie encounter significant obstacles in their quest for justice:

• Lack of Oversight:
  Jane Coston outlines the systemic lack of accountability within addiction treatment facilities, making it difficult for victims to come forward and for authorities to take action.

  "There’s just not enough oversight in general, and we're putting the onus in most cases on people who are in an extremely vulnerable position."
  [08:12]

• Resistance from Authorities:
  Debbie Herzog details her struggles to get law enforcement agencies to take her fraud and assault reports seriously:

  "I was going to bonkers. I mean, bonkers. Like, literally banging my head against the wall. Like, how can nobody be paying attention to this?"
  [32:25]

• Internal Retaliation:
  Upon presenting evidence, Rose Stahl faces retaliation from CRLA, including her termination and ongoing intimidation efforts by Batham.

---

Breakthrough and Legal Proceedings

Despite the relentless challenges, Rose and Debbie’s perseverance leads to significant breakthroughs:

• Debbie Herzog's Persistence:
  Through persistent efforts, including presenting detailed fraud schemes to the District Attorney's office, Debbie secures the attention needed to move the case forward.

  "They eventually got the sex crimes over to the sex crimes unit and they took that."
  [49:15]

• Chris Batham’s Conviction:
  Multiple agencies, including the FBI and the California Department of Insurance, collaborate to prosecute Batham. In February 2018, Batham is convicted of health care fraud and sexual assault, receiving a 52-year prison sentence. The sentencing memo highlights the profound and lasting impact of his crimes on victims:

  "The crimes committed by this defendant impacted so many lives and is a shadow that will likely continue to follow the victims for the rest of their life."
  [50:59]

---

Conclusion and Reflections

The episode underscores the critical need for advocates and robust oversight within addiction treatment centers. Debbie Herzog emphasizes the importance of having someone to stand up for victims, who often face numerous barriers to being believed and receiving justice.

• Debbie Herzog concludes:

  "Somebody needs to be their advocate."
  [51:14]

Lauren Chulgin and her team’s investigative efforts highlight the systemic issues within addiction treatment industries and the profound personal courage required to confront powerful abusers.

---

Key Takeaways

1. Systemic Failures: Addiction treatment centers may lack sufficient oversight, allowing for abuses and fraudulent activities to persist unchecked.
2. Importance of Advocacy: Victims of misconduct in vulnerable populations need strong advocates to ensure their voices are heard and justice is served.
3. Power of Investigative Journalism: Persistent reporting can expose deep-seated issues, even in the face of intimidation and legal threats.
4. Legal Challenges: Overcoming bureaucratic resistance is crucial for initiating meaningful investigations and prosecutions.

---

Notable Quotes

• Jane Coston on Spofford’s influence:

  "He has built this big reputation as a powerful business owner who's found his way through sobriety and now is giving back."
  [05:19]

• Debbie Herzog on the difficulty of addressing fraud:

  "I mean, honestly, it's hard. It really depends on the person doing the harm, the facility that that person works at, the facility is in."
  [08:12]

• Lauren Chulgin on confronting Batham:

  "I had no freaking way I could not investigate and find out."
  [25:16]

• Debbie Herzog on victims' challenges:

  "Being believed, and there's only so many times you can get beaten over the head and you just stop complaining."
  [51:02]

---

Final Thoughts

"The 13th Step" serves as a powerful exposé on the dark underbelly of addiction treatment centers, highlighting the indispensable role of dedicated individuals like Rose and Debbie in uncovering and combating systemic abuse and fraud. Their stories exemplify the impact of resilience and the pursuit of justice in transforming and safeguarding vulnerable communities.

Transcript

[Al Letson]

This episode is brought to you by Progressive Insurance. You chose to hit play on this podcast today. Smart choice. Make another smart choice with Auto Quote Explorer to compare rates from multiple car insurance companies all at once. Try [e-mail], progressive Casualty Insurance Company and affiliates. Not available in all states or situations.

[Jane Coston]

Prices vary based on how you buy. Hi, I'm Jane Coston, former writer and.

[Lauren Chulgin]

Podcaster for places like the New York.

[Jane Coston]

Times, the Atlantic and National Review.

[Lauren Chulgin]

And.

[Jane Coston]

And now I'm here to hang out.

[Lauren Chulgin]

With you five days a week on what a Day. Crooked's daily news podcast.

[Jane Coston]

That's right. Now, who's respected on both sides?

[Lauren Chulgin]

These days, it's hard to separate what.

[Jane Coston]

Matters from all the noise.

[Lauren Chulgin]

Especially when the noise is an elderly.

[Jane Coston]

Guy mumbling conspiracy theories he heard on Newsmax. That's why every weekday the team and I scour the headlines to bring you the stories that matter most to the way you live.

[Lauren Chulgin]

In just 20 minutes, you can listen.

[Jane Coston]

To the show wherever you get your.

[Al Letson]

Podcasts from the center for Investigative reporting and PRX, this is Reveal. Hi, I'm Al Letson. In March 2022, New Hampshire Public Radio broke a big story. It was about the founder and then CEO of New Hampshire's largest addiction treatment network.

[Lauren Chulgin]

I'm about as well known as a drug addict. What a weird claim to fame. I'm a very well known drug addict in this state.

[Al Letson]

Eric Spofford built his business on his own story of substance use disorder and recovery. New Hampshire was hit hard by the opioid epidemic and he'd become an influential figure in the state's respons to the crisis. Former governor Chris Sununu considered Spofford one of his go to guys. And Spofford testified before Congress. But then reporter Lauren Chulgin had uncovered that Spofford was accused of multiple acts of sexual misconduct by employees and former clients.

[Jane Coston]

All these allegations raise serious questions about Spofford's leadership, the company that made him wealthy, and New Hampshire's reliance on Spofford to help address the addiction crisis.

[Al Letson]

For her story, Lynn Lauren spoke to victims at one of Spofford's facilities called Green Mountain Treatment center, including a woman named Elizabeth.

[Jane Coston]

The day after she left Green Mountain, she says she started receiving messages on Snapchat from Eric Spofford. He was already planning to come to see me, wanted to take me out, wanted to do explicit things.

[Al Letson]

She also spoke with people on his staff.

[Lauren Chulgin]

I went into this knowing fully well that he had liabilities. I certainly didn't know that he was.

[Jane Coston]

Going to turn out to be like Harvey Weinstein.

[Al Letson]

After the story airs, Lauren gets a call from a woman we're calling Andrea. We're not using a real name because other people who've spoken out have faced threats. Andrea's in recovery. She tells Lauren she met Spofford at an Alcoholics Anonymous meeting and that he'd taken advantage of her, too.

[Lauren Chulgin]

I fell right into it, right into it.

[Al Letson]

You know, it's like, it's just you're so vulnerable. But then she says, this kind of behavior, it's much bigger than just one man. It's so common, there's even a name for it. It's because it's so notorious and it's so bad. And what they, you know, there's like.

[Lauren Chulgin]

This thing called the 12 steps.

[Jane Coston]

Yeah, well, what they do, they made.

[Al Letson]

A joke about being a 13 stepper.

[Lauren Chulgin]

And the 13 stepper is like when you take advantage of a newcomer, like, they joke like, don't be a 13 stepper or something.

[Jane Coston]

So it's like, it's very prevalent, but.

[Al Letson]

He really had it down to a science. So Lauren sets out to do more reporting, but then police are searching for.

[Jane Coston]

That suspect right there who they say targeted a reporter.

[Al Letson]

Bricks through windows and other forms of vandalism at the homes of Lauren, her boss, and her parents. Still, Lauren keeps working on the story. She and her team in New Hampshire Public Radio release a podcast called the thirteenth Step. It goes deep on this long standing culture of sexual misconduct in recovery communities and details the impact the vandalism had on Lauren and her sources. When the podcast came out in 2023, it wasn't clear who was responsible, but now federal prosecutors say it is. So we decided to bring back part of the 13th step we aired last year and also invite Lauren to talk about the latest developments. And a heads up before we get started, parts of today's story may be difficult for some listeners to hear. Lauren, thanks for joining me. So tell me, who was behind the vandalism at your home and the others?

[Jane Coston]

Well, Al, this is kind of wild for me to say, but it was. According to the feds, it was Eric Spofford, the guy I investigated for sexual misconduct and addiction treatment. FBI agents arrested Spofford the last week in May. They brought him in. He was in custody over the weekend, and then I saw him in court the following Monday for his arraignment.

[Al Letson]

That must have been surreal after investigating this guy for so long and finally seeing him have to pay for his crimes, specifically his crimes against you.

[Jane Coston]

There. There aren't Enough words, I can tell you. I mean, it's. It was the first time I'd seen him in person, and I've been investigating him, looking into him for the past five years. And this is a guy who's built, you know, quite the reputation around here, Al, and online. I mean, he has million followers. He has built this big reputation as a powerful business owner who's found his way through sobriety and now is giving back. He's friends with the former governor, he's friends with our current governor. And to see him in this federal courtroom, I mean, it was. It was quite. Quite the scene.

[Al Letson]

So what exactly do the feds say he did?

[Jane Coston]

The feds are saying that Eric Spofford paid his close friend Eric LaBarge 20,000 doll. Thousand dollars to commit these acts. They're saying that Eric Spofford was the one who gave him our addresses, that Eric Spofford is the one who said, use red spray paint. Throw bricks through these windows, and specific instructions about how he wanted Eric Lavarge to terrorize us. Now, we know Eric LaBarge was part of the scheme because he's already pled guilty and was convicted of his own role, which was paying three other men to do these acts. And so we knew that part, but what we didn't know for the past three years was that behind it all, Eric Spofford was the one pulling the strings. And I should say this is also all the while that Eric Spofford was suing us for defamation, which we won. But these two parallel tracks of this violent vandalism and also this defamation lawsuit were quite intimidating for my sources.

[Al Letson]

Yeah, that's intense. So he's doing all of this to stop the reporting?

[Jane Coston]

Yeah.

[Al Letson]

Did it work? I mean, did the vandalism and the lawsuit, did. Did it have the effect that he was looking for?

[Jane Coston]

Unfortunately, yes. I mean, there's no way around it. I had sources come forward that saw what was happening, and one of them said, you cannot protect me from this, Lauren. And what am I supposed to say to that? Of course I can't. I mean, I only have so much control in this world, and yet, at the same time, while those sources backed out and I understood it like, you know, I wasn't going to be the person who was like, but you have to. No way. Like, it's up to everybody. If they're in it, they're in it. And if they're not, that's on them. And I totally respect that. At the same time, I just felt like this reporting was too important to Stop.

[Al Letson]

Yeah. So. So how are the sources feeling now, seeing that Spofford has been arrested by the FBI?

[Jane Coston]

Yeah, I mean, it's wild. I've been hearing from probably hundreds of people, and the reactions are. Are really mixed. I mean, there's a lot of enthusiasm, a lot of, oh, my God, I can't believe this happened. I wish I could have been there. And on the flip side, though, Al, I have sources also saying to me that there's an unfairness here, that Eric is facing accountability for what he did to my house and for the alleged harms he committed. You know, sexual misconduct against former clients, former employees of his treatment centers. They just feel like, where's the justice for them?

[Al Letson]

So this is a little bit of a philosophical question. On the thirteenth Step podcast, you went looking for answers about how to hold people accountable for unethical behavior. What did you find?

[Jane Coston]

That it's hard. I mean, honest to God, I mean, that's simple. Basically, Al, it really depends on the person doing the harm, the facility that that person works at, the. That the facility is in. But, you know, overall, there's just not enough oversight in general. And we're putting the onus in most cases on people who are in an extremely vulnerable position. We're talking about people who, if it. You know, if the harm is being done at a residential treatment center, that's a person who's in early sobriety, who's maybe, you know, stopped using drugs or alcohol for what, like, a couple weeks. And so the idea that that person can. Can see what needs to be done and can figure out, okay, this is the person I need to call, and what if they need to call the police? I mean, these are not people that are often going to the police. Their addiction is considered illegal. They get past all these obstacles. Well, if the person doing the harm is in a position of power at the place where they're getting sober, I mean, what's the likelihood they're really going to go toe to toe with that person?

[Al Letson]

And so that brings us to the story we're going to hear today. It's about another case, but this one is in California, where the CEO of a network of treatment facilities was accused of sexual assault and massive insurance fraud. And you tell the story of two women who go after this guy. So what did you learn from Rose and Debbie?

[Jane Coston]

I think what I learned is how relentless you have to be to uncover wrongdoing in this industry. I just could not believe the lengths that Rose and Debbie had to go to to be just heard. So all this to say, if you want to catch a predator in this industry, you basically need to clear your calendar because it is going to be years and years and years of your time. And I should say Debbie, one of the women in the story, she's a former federal prosecutor. So the fact that she couldn't even get law enforcement's attention the first time is just a great anecdote for how difficult it is to find accountability in this field.

[Al Letson]

Thanks, Lauren.

[Jane Coston]

Thank you so much.

[Al Letson]

Lauren Chulgin is an investigative reporter at New Hampshire Public Radio and the host of the thirteen Step. When we come back, a worker at a recovery center hears rumors about her boss offering drugs to patients.

[Lauren Chulgin]

And at that point, it was like, what it was. So, I mean, I really had kind of a little mini nervous breakdown.

[Al Letson]

You're listening to Reveal.

[Jane Coston]

Hey, this is Missa from Reveal. How many episodes have you listened to? 5, 500. And how many times have you donated? It's free to listen to these shows, but great journalism is anything but free to produce. It takes millions of dollars a year to make Reveal, and the truth is it would not be possible if listeners did not support it. So please donate today. Just text the word give to 888-57-REVEAL. That's 888-577-3832 or visit revealnews.org donate. Thank you.

[Al Letson]

From the center for Investigative Reporting and PRX, this is Reveal. I'm Al Edson. Today we're bringing back part of a series from New Hampshire Public radio called the 13th Step. It's about a culture of sexual misconduct in the addiction treatment industry. Most of the series is about how hard it is to root out that misconduct. But this story is about two women who team up to do just that. Their names are Debbie Herzog and Rose Stahl. Here's reporter Lauren Chiljian.

[Jane Coston]

In 2013, Rose was living in Los Angeles, and she was talking to a friend about how she was thinking about drinking again. Rose had been in recovery for a while at that point, and this friend was like, oh, you should meet this guy, Chris Batham. He's a therapist. This friend said he specializes in addiction and he might take you for free. Free sounded especially great. So Rose started seeing Bathom for weekly therapy sessions. What was he like?

[Lauren Chulgin]

It's funny. It's hard for me to answer that question straight out without saying, I am fully aware that many, many other people saw right through him right away. But for me, he was just really brilliant. And I always walked away every session just feeling this sense of ease that, okay, okay, Everything's okay.

[Jane Coston]

I met Rose at her home in Austin, Texas. That's where she lives now. I was immediately struck by how vibrant and expressive Rose is. She beams this happy, chaotic energy. I was barely out of the car when she hugged me. But like so many of us, Rose also knows the depths of depression. She was in a real tough spot when she met Bathom. Rose was separating from her husband, trying to find her way through the world as a single mom without any family close by, no job. And there were all those swirling questions about her sobriety. But she says her sessions with Batham felt powerful and thoughtful. She bonded with him quickly. So for over a year, she'd drive to his office for an hour or 90 minute session and walk out feeling relieved. Although sometimes, sometimes he did say things that Rose thought. Whoa.

[Lauren Chulgin]

What he did offer eventually, to drink with me in a bar as a therapeutic tool to assess my. Am I an alcoholic or not?

[Jane Coston]

A therapeutic. Drinking with her therapist, Rose says it instantly made her feel nauseous. She didn't take him up on it, but she heard him out. Because Bathom wasn't only a therapist. He was the founder of a growing substance use disorder treatment company called Community Recovery Los Angeles. He ran facilities in many of the fanciest corners of la, like Malibu and Calabasas, home of at least one Kardashian. Batham would eventually own more than 20 sober homes and outpatient clinics in Colorado and California. So surely he must know what he's talking about.

[Lauren Chulgin]

But it was also, in a way, Batham was great for Los Angeles because Los Angeles is full of those moments. You're all the time, you're like, whoa, what? Who did what?

[Jane Coston]

That moment could have been a bright red flag. She could have walked away, found a new therapist. But of course, that is so hard to do. Instead, Rose would end up working at Community Recovery, Batham's treatment company. They call it crla, and most people refer to Chris Batham as Batham. So I will too. Batham offered Rose a job at CRLA during one of their therapy sessions. Rose definitely knew that was weird and. But Bathom convinced her they'd keep their distance from each other and stop doing therapy together. Plus, CRLA was growing rapidly. It seemed on the outside, like a place you wanted to be a part of if you cared about addiction. Batham was seen as a visionary, a guy who was always talking about systems and theories. It felt like he was thinking differently about this seemingly unsolvable problem of addiction. So you really think that rehab's fraud.

[Debbie Herzog]

For the most Part I'd say that's the case. I wouldn't say that's always the case. But I think that most of the work that's being done and the money that's being spent is wasted.

[Jane Coston]

This is an old radio interview Batham did before opening CRLA where he's calling out other treatment providers.

[Debbie Herzog]

They very much are focusing on the next client and the next client's cash and how the next client's cash is going to make the thing better. And it's very much like a person who's selling something and addicted in that selling process, or a person who's gambling and anything goes as long as the client comes in. And I think that's pretty sick.

[Jane Coston]

CRLA was all built around Batham's big idea that the best way to solve substance use disorder is with more affordable, longer term treatment. He was also known for his holistic approach to treatment, like using sound baths or meditation sessions in sweat lodges. And there are still people who say that CRLA was the thing that finally helped them stop using. Batham felt like the usual 30 days of rehab weren't enough. So he'd keep clients for 90 days of inpatient treatment. He didn't invent that, by the way. Longer residential treatment is an idea that's been around for a long time. Batham even found ways to keep clients after their 90 days. He would offer clients paid internships where they'd do odd jobs and chores at crla. And then after only six months of interning, clients could be hired as CRLA staff. Batham hired Rose to help open a new community center, which would be the main hub of crla. And given how tumultuous her life had been lately, this new job felt like a fresh start.

[Lauren Chulgin]

I was making decent money, you know, it was enough for me to support myself and my daughter with the help of like a little bit of child support. So it was awesome, actually. I was self sufficient. I didn't have any worries.

[Jane Coston]

Rose could tell pretty quickly that CRLA was expanding. One minute she's working on the new community center, and then the next she's talking with a contractor about a new medical clinic. At the time, Rose had no idea how CRLA was funded. She didn't think much about it. But in a small office 35 miles away, a woman named Debbie Herzog was starting to get an idea.

[Debbie Herzog]

So is it better if we sit next to each other?

[Jane Coston]

Or we can do that. Next year is just fine. Okay. Debbie was a federal prosecutor for nearly two decades. It's a key part of who she is, despite many of the other prestigious jobs on her resume. For example, she also investigated fraud for some federal agencies like NASA and the postal service. So suffice it to say, not much gets by Debbie Herzog. In 2013, as Rose was in therapy with batham, Debbie left government work and started a job as an insurance investigator at anthem. It was a lot of bill collecting, Way more than she had hoped. But then one day, she ran out of assigned work to do.

[Debbie Herzog]

And when that happens, we're supposed to try to come up with our own. And the best way to do that Is to pick a certain procedure, A certain billing code, and run it through the computer and ask the computer to find the providers that build that code the most and see what pops up.

[Jane Coston]

So debbie thought, why don't I try the code for preventative medicine that covers things like a primary care doctor Sharing information on how to prevent a heart.

[Debbie Herzog]

Attack or things to avoid so you don't get cancer. So I stuck preventive medicine in, and community recovery popped up at the top of the list and had hundreds and hundreds and hundreds more billings Than any other provider on the list. And it's a drug and rehab center. Why are they billing for preventive medicine?

[Jane Coston]

Hundreds and hundreds and hundreds of billings. At crla, Chris batham's place, Debbie realizes she might be onto something here.

[Debbie Herzog]

So I started looking at the patients that anthony and blue cross had at community recovery, and I could pull up the patients and see the different things that they were billed for. And it was just all kinds of stuff. Smoking cessation, Group therapy, Individual therapy, all kinds of services that actually should have been covered under the umbrella of drug treatment. So if you check into a treatment center, they tell you it's going to cost $30,000 a month, and that $30,000 is going to cover all services at that facility. So if those services are being billed individually as well, that's double billing, and that's fraud.

[Jane Coston]

Fraud. Basically, patients were being billed once for all their treatment and then billed again and again and again and again for each individual service which they'd already paid for. Debbie starts digging hard. She tries to drill down to see just how deep this problem goes. Turns out there was much more Than just the double billing scheme.

[Debbie Herzog]

Chris batham, the guy who owned community recovery, had opened up places in Colorado pretty recently. And I discovered, Looking at these individual patient billings, that some of them were being billed for services rendered in southern California and colorado on the same day.

[Jane Coston]

That's not possible.

[Debbie Herzog]

Right. So there was triple billing, and then I started running these patients through social media to see what I could find out about them. And on Facebook and on LinkedIn, they listed their jobs as jobs at Community Recovery. So he was billing for interns, billing for full time employees, billing for part time employees as if they were all patients.

[Jane Coston]

Chris Mathem was taking out insurance policies in the names of his employees, as in creating accounts for them and then billing those fraudulent accounts for addiction treatment services that no one was actually receiving. And to add another layer, it was sometimes former clients hired to work in the CRLA billing department who did that paperwork. What did it feel like to see that? Wow.

[Debbie Herzog]

I found not just paper fraud. You know, it's kind of a dull case, paper fraud, but really interesting fraud. I mean, fraud that might get somebody's attention.

[Jane Coston]

Or so she hoped. What did you know about the recovery world at that point?

[Debbie Herzog]

Unfortunately, more than one might expect. I had a son who was in recovery at the time. I had just. Just sent him away for the first time for treatment and was well aware of the expense, the billing, what services were provided. And the longer he was in and out of recovery, the more I got to know.

[Jane Coston]

So in 2014, while she sat in her new office clicking through fraudulent billing after fraudulent billing by crla, an addiction treatment provider, all she could think of was David.

[Debbie Herzog]

I mean, I'm thinking, this could be me, this could be my kid who's supposed to be getting services that he's not getting. Yeah, I was completely on my mind, and I think that's why I was so rabid about the whole case and still am about the whole industry.

[Jane Coston]

Rose didn't stumble on a gold mine of data like Debbie did. She was on a different journey. She was close with Batham. She was working for him. But then she started to hear some rumors. This is the part of the story where we will start to talk about things that are especially hard to hear. The rumor was that Bathom was having sex with female clients and that he was using drugs with those clients. There was also word going around of some fraud that Batham had defrauded a former investor.

[Lauren Chulgin]

And at that point, it was like, what it was. So, I mean, I really had kind of a little mini nervous breakdown.

[Jane Coston]

There are a lot of choices you can make when you hear such a wild rumor. You could dismiss it, shrug it off, you might spread it around, see what other people say. Or you could be like Rose and think, I need to confront Chris Batham about this right now.

[Lauren Chulgin]

Oh, it wasn't an option not to that. Like, that's Just kind of me. I mean, there was no freaking way I could not investigate and find out.

[Jane Coston]

Rose told me she's always been like this. She has to intervene. She's a rule follower to the extreme. Her mom once told her, you've always been a little whistleblower. There was one story she told me that I'm potentially obsessed with. Rose was 6, maybe 7, and she has a vivid memory of being deeply disturbed by other kids littering.

[Lauren Chulgin]

I remember being like, the litter police. You know, like some kids were littering and we had this commercial. It was like, don't mess with text. And I just remember being like, don't mess with Texas.

[Jane Coston]

Rose was not the kid that pretends they don't see the ice cream wrappers on the ground. Rose was the kid that yelled out, hey, you can't do that.

[Lauren Chulgin]

And I think they, like, kicked me or something, you know, like, shut up, you twerp.

[Jane Coston]

The litter police thing never left her. So when rumors were spreading that Chris Batham was having sex with clients and using drugs with them, the biggest question for Rose was, what's the best way to confront him? Rose had a friend named Jane who was living with her at the time. So they processed all this together. I can imagine Rose pacing in their small apartment in Hollywood. Her friend Jane is sitting on the couch, totally blown away.

[Lauren Chulgin]

I was telling Jane, you know, this is just crazy. I don't know, but I have to confront him. And so Jane was like, well, my ex wife worked in the field, and maybe we can talked to her about it. And she. Because Jane had told me years before, and even she had. I remember when I met her, she was going through it with this place, and she was like, the owner is smoking crack with clients, sleeping with clients, trying to give the staff drugs. It was really insane.

[Jane Coston]

So Jane, she figures, might as well shoot my ex wife a text. Who was that old boss you had who slept with clients? Meanwhile, Rose gets up the courage to send a text to Batham. She. She thought back to their therapy sessions and realized she had the perfect way to lure him to meet. Immediately, Rose started typing.

[Lauren Chulgin]

I was panicking, and I was just like, I'm feeling like drinking. Like, can we meet? And he said, actually, I think a drink is a good idea.

[Jane Coston]

Batham and Rose make plans to meet at a restaurant. Jane offers to drive Rose there.

[Lauren Chulgin]

Jane and I get in her car, and we're driving there, and it's kind of a long drive, and she's really uneasy about me confronting my boss. And I'm just like, I Don't care. I gotta do it. Because she's like, what if it's true? Like, what then? And I must have really held out hope that it wasn't true. Well, no, I did, because right as we're pulling in to the restaurant, and I see him standing in these shorts, which was weird. I'd never seen him in shorts, just kind of waiting for me outside. The. The ex wife text. Chris Batham.

[Jane Coston]

As in, oh, that former boss I had that slept with clients? Chris Batham. No.

[Lauren Chulgin]

Yeah. Yeah.

[Jane Coston]

So what did you do?

[Lauren Chulgin]

Unfortunately, I end up believing him.

[Jane Coston]

Rose sits down at the restaurant bar with Basham. They order drinks. Rose said he looked mildly nervous. But when Rose confronts Batham about everything she's heard, he denies it all. And he's got an explanation for everything. The person who passed along the rumor, she's unstable. The person who started the rumors, it's that former investor Batham says he's been trashing him, making all sorts of accusations online. Rose had actually seen the investor's posts on social media. And then over the next few days, Batham had the company's CFO tell Rose how absurd the whole thing was.

[Lauren Chulgin]

I mean, I just felt so bad and started crying. How are you ever going to trust me? Scared that I changed our wonderful dynamic, you know, all of it wondering if my job is at risk now.

[Jane Coston]

You have to understand, Bathom had an incredible power over Rose. She felt he knew her inside and out. He gave her free therapy. He gave her a job when she was in crisis. No rumor or coincidental text message could change all that. Plus, now he was forgiving her. He even moved her into a new role at crla. Batham asked her to be an investigator, gather information about this investor who he said was harassing him. She would be saving the company so they could help more clients. That was the idea.

[Lauren Chulgin]

What I was being told was that the investor was even, like, hiring people to come work at crla, hiring people to pose as clients and things like that. And so I really was passionate about stopping this guy from putting out these rumors. They're sick and hurting people.

[Jane Coston]

And the rumors kept on coming. As Rose is doing her investigating, she comes across a video on social media with a big allegation. There are two people in this video. One of them is the former investor. He's standing beside a young woman. The video is only 14 seconds long, and it's alarming, but it's also really weird.

[Lauren Chulgin]

Hayley. Hello.

[Jane Coston]

Now, Hayley was a client over at Chris Botham's place and would you mind.

[Lauren Chulgin]

Saying on camera that you were drug and raped? I was drugged and raped by Chris Botham.

[Jane Coston]

That's it. That's the whole video. Rose watches it and she still doesn't believe it because she's focused on the investor. He seems to be prompting this client to speak, and Rose thinks, wow, what insane length this guy is going to making up a rumor about sexual assault. He's going to stop.

[Lauren Chulgin]

I had the fear that other clients or other staff would have the same just wildly bad reaction to hearing the rumors and relapse.

[Jane Coston]

Batham has redirected the litter police. He's convinced Rose he's not a bad guy. He's the good guy.

[Al Letson]

As Chris Batham deflects accusations against him about sexual misconduct, Debbie continues to build her fraud case against him. But authorities, they don't seem interested.

[Debbie Herzog]

And I was going to bonkers. I mean, bonkers. Like, literally banging my head against the wall. Like, how can nobody be paying attention to this? Why doesn't anybody care?

[Al Letson]

That's next on Reveal. From the center for Investigative Reporting and prx, this is Reveal. I'm Al Edson. Today, we're partnering with New Hampshire Public Radio to bring you part of their podcast series the thirteenth Step. It's about two women, Rose Stahl and Debbie Herzog, who, independent of each other, are investigating the founder and owner of of a chain of addiction treatment centers, including one in Los Angeles called crla. Debbie's an insurance investigator, and she's uncovered hundreds of fraudulent billings by the company. But when she writes up a report and sends it to state authorities, they refuse to investigate. Reporter Lauren Chiljian takes it from here.

[Jane Coston]

Debbie Herzog was not off to a great start. Debbie used to be a federal prosecutor, so she thinks, all right, maybe I'll have better luck with the feds. So she takes the case over to them, tells them how deep it seems to go, and that doesn't work either in la.

[Debbie Herzog]

They're really picky about the cases they take, and they're only looking at really, really large dollar cases. And it wasn't a large dollar case yet. And when I say large dollar case, I mean they're looking at a million dollars or above. And I was probably in the thousands at the time. So then I went to other insurance companies and said, hey, look at this. Check out your billings, and started getting the other insurance companies on board. The dollar amounts obviously started getting higher as we got more community recovery clients from other insurance companies. But it still wasn't reaching the threshold for federal investigation or prosecution. So I Was kind of stalling. And her call came at the right time.

[Jane Coston]

One day In February of 2015, Rose Stahl was with her boss, Chris Batham, in his Tesla. She was a few months into her new job as a sort of investigator for the company, keeping an eye on that investor who had turned on Batham.

[Lauren Chulgin]

I don't remember what the investor was doing at the time, but it was something that was really upsetting to Batham. And so we were driving in his car, and he. He told me that he had basically, in a roundabout, hired someone to murder the investor.

[Jane Coston]

What? Yeah, yeah.

[Lauren Chulgin]

He's like, you know, wouldn't it be better if he were just gone? Well, yeah, it would, of course. Well, wouldn't it be, you know, what about him having a car wreck? What if he had a car wreck in two weeks? I'm like, what?

[Jane Coston]

What the fuck? Rose's mind starts moving fast. Is he joking? What is he saying? A car wreck? Is this some weird therapy thing?

[Lauren Chulgin]

It was like he was trying to literally coax me into buying into and agreeing with having the investor murdered. And so I said directly, I said, are we talking about murder? And I looked at him in the car, and then I saw it for the first time. I was like, he's high.

[Jane Coston]

Rose could see it in Batham's face. Beads of sweat, eyes wild twitching. Things that before, she just wanted to see as Batham's mannerisms. Now, it was obvious Rose was scared, but she's also Rose, the rule follower, the litter police. She was determined to find out if she was right. So the next opportunity she gets to use Batham's car by herself, she takes it. It's days later, she hears Batham asking a client to go charge the Tesla for him. Rose intervenes. Let me charge it for you. So she gets in Batham's car alone and starts driving.

[Lauren Chulgin]

I was just looking around. I was looking while I was driving, looking down, and you could see it. You could see little devices like pens that had. Sometimes people would use, like smoking heroin or meth. And this handprint on the window that was in a bizarre position where it looked like it was like a handprint placed in a way that no natural position nobody would ever sit in while the car was moving. And so, of course, I was like, it looks like a sexual position. Yeah, it was fucking devastating.

[Jane Coston]

Rose also found drugs in the car. Methamphetamine. She took a short video and some pictures. And then suddenly, Rose remembers the rumor about the client, the client who made a video where she said, I was drugged and raped by Chris Batham.

[Lauren Chulgin]

My first thought was, oh, my God. Oh, my God. She was probably telling the truth. And I have been for however many months, a part of the machine that is trying to make people believe that she's a liar.

[Jane Coston]

Rose calls a manager at CRLA and tells them what she's found. And maybe because she's found hard evidence, this manager takes her really seriously. Batham is kicked out of the company. But that is not where the story ends. At first, Rose says, it seemed like all the remaining managers were a unified front against Batham. Everyone agreed what he did was wrong, and if he tried to come back, Rose says, they would go to the police. That lasted, Rose Sundays, for maybe three days. Rose learns Batham still has access to the company systems, to the clients. Even when he wasn't at his facilities.

[Lauren Chulgin]

He was looking on the video, the surveillance cameras, and contacting clients, texting female clients, like, hi, I see you on the camera, camera. And so when I, you know, I thought that that would be handled. I was made aware that that would not be handled, and there was nothing we could do about it.

[Jane Coston]

So Rose becomes an investigator again, but this time against Batham. She confronts other members of Batham's team, trying to get some. Someone, anyone in management to take her seriously. She's pushing a lot of people, asking a lot of questions, but it doesn't seem like anyone cares. They didn't believe her.

[Lauren Chulgin]

You know, I just knew that the cards were stacked against me, so I felt like I was on a mission to find somebody who could represent better than I could.

[Jane Coston]

But you're the litter police.

[Lauren Chulgin]

The litter police. I'm a litter police, but, you know, I have the body of a woman.

[Jane Coston]

Rose starts saving everything she can get her hands on, and I mean everything. When a colleague leaves the company and takes his laptop with him, Rose tracks him down to see what data he has. And then that former colleague connects her with another CRLA employee. And they both claim Batham is running an insurance scam. Rose will believe anything at this point. So she starts collecting documents. She's pulling string wherever she can find it. She knows she needs to call someone else outside the company for help, Someone with power. But who? Who do you call if your boss is threatening to murder someone and may be running an insurance scam and is also using drugs and is sexually assaulting the clients of his treatment center. She tried calling the FBI, but they didn't get back to her. So what about the state of California? Rose thinks maybe there's some licensing body that I Could turn to and file a report about Batham. So she starts researching.

[Lauren Chulgin]

And then it was a devastating blow to realize, oh, he's not even a therapist.

[Jane Coston]

Chris Batham was not even a therapist. In fact, he wasn't personally licensed to do anything. All he had was a certificate for hypnotherapy, hypnosis. He didn't need a license to be a CEO of a drug and alcohol treatment center in California. So there was no licensing board to report him to. Rose says that was one of the most interesting, infuriating, and frustrating things about this case.

[Lauren Chulgin]

Whatever else had transpired in those couple of weeks, it had become very evident that nobody in the company cared to stop him from having sex with all of his clients. And nobody outside of the company could care in a way that mattered.

[Jane Coston]

Rose was stuck. She thought hard. She started flipping through old paperwork and documents, like the evidence she had compiled to prove that the investor was harassing Batham. And that's when Rose stumbled on a screenshot from the investor's Facebook. He had posted a phone number for an Anthem investigator, a woman named Debbie Herzog. Where were you when Rose called?

[Debbie Herzog]

At my desk in Thousand Oaks, California. And Rose talks fast, so she was kind of throwing out a lot of stuff. And she was an insider. And as a prosecutor, you know, you always need an insider to have a successful prosecution. You need a talker. You're always looking for a talker. And so I was really anxious to get in touch with her.

[Jane Coston]

Where'd you meet?

[Debbie Herzog]

At a Starbucks. And we sat there for hours.

[Jane Coston]

Rose begins with the story she heard from her colleague that there might be insurance fraud. She starts handing over documents, screenshots, emails that she collected.

[Lauren Chulgin]

I had all my papers, and I'm, like, trying to. I have no idea about insurance fraud, but I'm like, look at my little case that I put together that I'm trying. And that moment, though, of watching her kind of sift through the limited amount of paperwork that I had was that fear and anticipation and anxiety of, what is she going to say when she looks up?

[Debbie Herzog]

I mean, I was just scribbling, taking down notes, and listening to her at the same time.

[Lauren Chulgin]

And she looked up, and she was like, I think we got. I think this is something. I think this is something Rose.

[Debbie Herzog]

And then she told me about the girls and the information she had about sexual assaults or possible sexual assaults.

[Jane Coston]

What was it like to hear that?

[Debbie Herzog]

Pretty horrifying. You're talking about one of the most vulnerable populations, you know, addicted young women. And so it's easier to take advantage of them, because the predator knows that nobody's gonna believe them. It's gonna be an addict's word against theirs. So that makes them much more vulnerable and much easier prey.

[Lauren Chulgin]

It felt like I had officially blown that whistle that I had been threatening to blow and that it was now in the right hands and that it would be only a matter of weeks and ta da, everybody would be safe and protected and he would be gone.

[Jane Coston]

Except.

[Lauren Chulgin]

Except that was February 2015, and Batham.

[Jane Coston]

Wasn'T convicted until February 2018. In the moment, Rose and Debbie's Starbucks meeting felt like such a breakthrough for both of them. And yet they still had years of work ahead. CRLA fired Rose around this time. Rose believes it was retaliation for investigating Batham, in part because Batham faxed a three page letter of threats to Debbie's office at Anthem entitled Please give to Rose Stahl. And yet, despite all of this, Rose kept going. Rose spent months after the Starbucks meeting going back and forth with the Health Department. She'd write reports, submit documents, find other CRLA people to submit documents. There were like a hundred emails.

[Lauren Chulgin]

Just the red tape and the evidence, it just seemed never ending. Everybody always had somebody above them who needed more. So you get the Health department, whoever their supervisor is needs more, more, more, more. And so you get more, more, more, more. And then her supervisor is like, oh, now we need more, more, more.

[Jane Coston]

Debbie, meanwhile, focused on law enforcement. She hoped because of her background, she'd have an in there. She asked Rose to put her in touch with the client who said in that video that she was ra.

[Debbie Herzog]

And after I finished getting all the information from her, I said, are you willing to go to the police? And she said, yes. And I remember this. We were literally standing on the corner outside the Starbucks that we met at, and I started dialing, like, standing there. And I dialed and dialed and dialed for days and weeks and months and could not get anybody to work with me on the assault.

[Jane Coston]

Why?

[Debbie Herzog]

First reason, drug addict victim, not reliable. Second reason, many of the victims, after I spoke to other women, many of them were assaulted in different towns. Some were LA City, some were LA County. There's different, you know, county is the sheriff's department, city is lapd. If they're out in the burbs, it's a local police department. And they kept saying, well, we can't do that. You know, we can only investigate what's in our thing. I said, I don't think so. I mean, you know, bank robberies, cross jurisdictions all the time. And you guys investigate Those. Well, then you're going to have to call the first place that it happened. So then I called the first place that it happened and no, no, no. We had a couple of retired law enforcement officers on our investigative staff at Blue Cross. So I went to one of them. I said, I can't be doing this cold calling. Nobody's listening to me. I need a name. Can you give me a name of a sex crimes detective I can call? So he gave me a name, a woman. I was all excited, like, maybe somebody will listen. No, she gave me the same run around and I was going bonkers. I mean, bonkers. Like, literally banging my head against the wall. Like, how can nobody be paying attention to this? Why doesn't anybody care?

[Jane Coston]

But Debbie, ever the prosecutor presses right on.

[Debbie Herzog]

I have all these spreadsheets and all this stuff showing all the fraud and thinking, okay, you know, if I can get them at least interested in the fraud, get my foot in the door in the fraud, which was really all I could pitch to them given my job at the time. And I literally walked myself into the DA's office, asked to see the head of the fraud section, and sat down with her and her deputy for hours and laid out this scheme. And they took it. And they eventually got the sex crimes over to the sex crimes unit and they took that.

[Jane Coston]

Finally, finally, law enforcement is listening. The LA District Attorney's office takes the case. And over the next few years, multiple agencies would get involved. The FBI, the California Department of Insurance, the LA County Sheriff's Department. And what they found. It's almost beyond comprehension. The total amount of fraud, $175 million. Batham and his chief operating officer were charged with leading the scheme. It was one of the biggest health care fraud cases in California. And 13 women came forward and said Bathom sexually assaulted them. The trial was gut wrenching, filled with traumatic, agonizing testimony from women in their 20s and 30s who hoped to finally find recovery at CRLA. Bathom sexually assaulted one client during a guided group meditation in a sweat lodge. Many women said Bathom gave them drugs. Heroin, meth and cocaine. In 20, 20, five years after Rose and Debbie first met at Starbucks, Batham was sentenced to 52 years in prison. In the sentencing memo, the LA district attorney wrote, the crimes committed by this defendant impacted so many lives and is a shadow that will likely continue to follow the victims for the rest of their life. In order for someone to be caught for sexually abusing clients of a treatment center, the thing that client needs most, Debbie says, is someone to stand up for them. People with substance use disorder already face so many obstacles like shame, stigma, not.

[Debbie Herzog]

Being believed, and there's only so many times you can get beaten over the head and you just stop complaining. So somebody, you know, somebody needs to be their advocate.

[Jane Coston]

That's the key. An advocate?

[Debbie Herzog]

Yes, somebody needs to be their advocate.

[Al Letson]

Thanks to reporter Lauren Chulgin for sharing that story with us. You can listen to the entire series, including a brand new update wherever you you get your podcast and you'll find a link to [e-mail] Takitela Nidis and Katie Colinari edited today's show. The 13th Step was created by New Hampshire Public Radio's document team. Lauren Chulgin reported and produced the series with help from Jason Moon, who also wrote the original music for the series. It was edited by Allison McAdam with help from Katie Colinari and Dan Barrick. The fact checker was Dania Suleiman. Victoria Baranetsky is our General counsel. Our production manager is the Great Zula Macabre Mixing in sound designed by the dynamic duo Jay Breezy, Mr. Jim Briggs and Fernando My Man Yo Arruda. This week they had help from Jason Moon. Our interim executive producers are Bret Meyers and Taki Telenides. Our theme music is by Camarado Lightning. Support for reveals provided by the Riva and David Logan foundation, the John D. And Catherine T. MacArthur foundation, the Jonathan Logan Family foundation, the Robert Wood Johnson foundation, the park foundation, the Schmidt Family foundation and the Hellman Foundation. Support for Reveal is also provided by you, our listeners. We are a co production of the center for Investigative Reporting and prx. I'm Al Ledson and remember there is always more to the story.

[Jane Coston]

From prx.