California Palms seeks to recover $600K seized during federal investigation

YOUNGSTOWN - The operator of an addiction recovery center in Austintown is asking a judge to order federal investigators to return more than $600,000 seized by the government last month.
A civil complaint filed in U.S. District Court on Wednesday by Sebastian Rucci on behalf of California Palms Addiction Recovery Campus seeks an injunction, alleging that the seizure of $603,903 from five personal and corporate bank accounts on October 5, 2021, was based on unconstitutional search warrants.
Rucci states the money is all the funds available to pay employee salaries, buy food, pay for utilities, health insurance, and other operating costs.
“It took 57 months to build the treatment center and it was destroyed in a mere few weeks by the illegal seizure,” Rucci writes in his 21-page complaint.
The complaint alleges that the seizure warrants failed to describe the items being seized and failed to list a crime supporting the seizure, violating the company’s and Rucci’s constitutional rights against illegal search and seizure.
Saying that three of the center’s clients fatally overdosed since the seizure, Rucci says in the complaint “the seizure crippled the business and destroyed the employee’s livelihood and severely impacted the clients,” causing financial ruin of the business and irreparable injury
Rucci seeks an emergency hearing and for the court to declare the warrants unconstitutional and order the immediate return of the $603,903.
In addition, the complaint asks for an affidavit the government used to obtain the seizure warrants.
The government has not yet filed a response to Rucci’s complaint.
In addition to seizing the bank accounts, federal agents also searched the California Palms at Route 46 and Interstate-80 on October 5.
An FBI spokesperson told 21 News at the time that investigation that is healthcare-related.
No charges have been filed against California Palms or Rucci, who has denied any wrongdoing related to possible Medicaid fraud.