Cover Story



Psychiatric fraud reached such levels in the U.S. that President Bill Clinton launched “Operation Restore Trust” to crack down on those running the scam.

Children and adolescents were valuable commodities for these psychiatric hospitals, due to the fact that the profit margin on a child or adolescent is 10% higher than that of an adult patient (children need less supervision as they are easier to handle than adults). To tap into this lucrative market, psychiatrists secretly enlisted school guidance counselors and others with access to student populations to identify and refer young patients.

School counselors were found to be secretly linked to marketing operations of psychiatric hospitals. In a San Antonio school district, for example, intervention specialists—psychiatric workers who determine who “should” be turned over for treatment—were given access to records of 62,000 school children.

Recruiters from one hospital chain went to Canadian Salvation Army shelters during the cold winter months to recruit patients by showing them videos of sun-drenched hospitals in Arizona, Florida, Texas, California and other states.



The $400 Million Swindle continued...


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