ferdman soon opened a rehab clinic called able support. daze been easy money for alexander ferdman. his california drug medi-cal contract is now worth about $2 million a year. his salary, $180,000. even after a 2011 review by los angeles county, found evidence of what it considers to be fraudulent practices at his business. ferdman was allowed to expand. >> drew griffin with cnn, how are you doing? >> i'd like to ask you some questions about your business if i could. >> i don't have time right now. >> how can a guy with a record like you, be operating a drug rehab clinic in california. you've been convicted of a major car crash scheme in texas? >> i was convicted, but that's not what it seems. whatever happened, i don't know, 50 years ago, what relevance does it have to today. >> does the county know about your criminal record? >> they probably do, i don't know. >> what happened in texas, ferdman told us, should stay in texas. >> i was facing 99 years, and i choose to take a smaller sentence. i could have it much worse. but there was no fraud and there was no record of it in anyway.

>> they probably do, i don't know. >> reporter: what happened in texas, ferdman told us should stay in texas. >> i was facing 99 years and picked a smaller sentence so that -- i could have it much worse. but there was no fraud and there was no record of it in any way. it's a very long story. >> reporter: that was a huge case in austin, texas, statewide actually. >> that's what they tried to bill it and that's why they pursued it and it wasn't what it seems and what they said it was. >> reporter: can you tell us how you came here and left texas how easy or hard was it? >> i don't want to talk about it right now. >> reporter: with widespread fraud in the program, former supervisor says it is not just taxpayers who are being cheated. >> i'm not the employee anymore that has to look at this every day but i'm a taxpayer that knows this is going on and it angers me and there's story after story after story about medicaid dollars cut from people who need the services. >> incredible investigation, drew and so infuriating. there's a lot of people that need help and a lot of good clinics and thi

>> they probably do. >> reporter: what happy, ferdman said, happened in texas should stay in texas. >a smaller sentence, because i could have a much worse, but there was no fraud and there was no record of it in any way. it's a very long story. >> it's a huge case in texas. >> that's what they tried to pursue it, but it wasn't what it seemed and what they said it was. >> reporter: could you tell me how you left texas and decided to come here to get into the business? >> i don't want to talk about it right now. >> with such apparent widespread falls, the former supervisor says it's not just taxpayers who are being cheated. >> i'm not the employees any more, but i'm a taxpayer that knows this is going on, and it angers me. and there's story after story after story about medicaid dollars being cut from people who need the services. >> reporter: that's our drew griffin reporting. this investigation is already getting attention. we have confirmed that alexander if. erdman is one of 16 operator temporarily suspended by the state of california, his clinic shut down last week. the investigati