YOUNGSTOWN - Editor's note: The story below was originally published in 2021. Since then, the federal government has since closed its case against Rucci and the California Palms and agreed to return assets seized. Rucci has subsequently asked that the federal government also unseal the affidavit in support of that seizure, arguing that it's not sufficient to just return the funds, since the government's actions contributed to the closure of the facility. 

Federal prosecutors are asking a judge to put the brakes on efforts by Sebastian Rucci to get back $603,902 seized during a search of his California Palms Addiction Recovery Campus in Austintown and learn the government's basis for that search.

The U.S. Attorney is asking the U.S. District Court to place a stay on Rucci’s request for the return of the money seized from bank accounts as well as the affidavit the FBI used to obtain warrants to seize the funds and search California Palms in early October.

Rucci alleges that the search and seizures were unconstitutional.

In a motion filed last week by Assistant U.S. Attorney Bridget Brennan, the government indicated that Rucci’s request for an injunction is premature and that he can’t seek the return of the funds until the government files a civil forfeiture complaint, which it intends to do before the end of January.

The California Palms complaint stated that the seized money was all the funds available to pay employee salaries, buy food, pay for utilities, health insurance, and other operating costs.

Prosecutors challenge California Palms’ contention that the seizure will cause irreparable harm to the recovery center, “crippling” his business.

The U.S. Attorney’s motion states that California Palms’ provider certification has been revoked by the Ohio Department of Mental Health and Addiction Services and in addition, the center’s provider agreements with the Ohio Department of Medicaid have been terminated.

“Therefore, the motion for injunctive relief - to avoid irreparable harm and to resurrect the business - is without merit as moot. Stated simply, Plaintiffs’ source of funding – namely, Medicaid – was terminated with the revocation of the provider certification of California Palms Addiction Recovery Campus, Inc. With that revocation, the business was effectively terminated,” according to the government motion.

Rucci told 21 News at the time of the certification revocation that California Palms has made changes and that the state refused to review them. 

No charges have been filed against Rucci or his recovery center.

The government’s motion says the FBI investigation involves alleged federal health care fraud offenses.

Responding to Rucci’s request for the government’s affidavit used to obtain warrants, Assistant U.S. Attorney Henry F. DeBaggis stated in an affidavit that revealing details of the pending criminal investigation would hurt the government’s ability to conduct that investigation, possibly compromising confidential law enforcement information such as its sources.

DeBaggis also stated that the release of the information would provide “improper opportunities” for Rucci and California Palms to learn details of the government’s criminal investigation

As of Monday morning, Rucci had not filed a response to the government’s motion.