AKRON, Ohio - Federal prosecutors have asked a judge to return hundreds of thousands of dollars seized as part of an investigation into the former California Palms Addiction Recovery Campus in Austintown.

The U.S. Attorney on Tuesday asked U.S. District Court Judge John Adams to dismiss the government's claim on $603,902.82 seized from the business's bank accounts on October 7, 2021.

That same month the Ohio Department of Mental Health and Addiction Services terminated its certification of California Palms as a treatment center.

The U.S. Attorney asks the court to let the government seize Medicaid funds which investigators claim were fraudulently collected.

California Palms owner Sebastian Rucci challenged the government’s claim, arguing that issues at the recovery center had been corrected.  No criminal charges were ever filed in the matter.

The government says in its dismissal request that after conferring with investigating law enforcement agents, they have concluded that continuing litigation of the civil forfeiture complaint shouldn’t go forward

Although government attorneys say they intend to return the seized funds with interest, they are asking that the case be dismissed “without prejudice,” leaving the door open to possible legal action later.

21 News has reached out to the U.S. Attorney and Sebastian Rucci for comment. As of Wednesday morning, neither had responded.

Judge Adams has yet to rule on the dismissal request.