Father-son executives who run a nonprofit based in the Bronx have been indicted in an insurance fraud scheme.

Alan Brand and his son, Jason Brand, were released on bail after facing a judge Wednesday. According to Attorney General Eric Schneiderman, the men abused Narco Freedom to pay for their own lavish lifestyles, including mansions on Long Island, condos in Florida and a fleet of luxury vehicles.

Narco Freedom is a substance abuse agency with 10 treatment centers throughout the Bronx, Brooklyn and Queens. It receives roughly $38 million in Medicaid funding.

Alan Brand, the organization's director, is charged with bribery, grand larceny and money laundering. He's also accused of taking $13,000 in kickbacks from landlords to put up residents in the treatment programs.

Lawyers for the men say they are proclaiming their innocence and will fight the charges. A civil order has meanwhile been issued to freeze the bank accounts, property and possessions of both men.

The court says that for now, all of the Narco Freedom centers will continue operations as usual.

Residents that News 12 spoke with at one of the centers say they aren't surprised to hear that the men were arrested. They say there has always been issues with the way the facilities are run, especially when it comes to residents' housing.