20 People, Health Care Business and Church Charged in Sober Living Scheme in Arizona
- On Tuesday, an indictment was filed against twenty individuals, a behavioral health company, and a church for orchestrating a $60 million Medicaid fraud scheme in Arizona linked to sober living facilities.
- The scheme arose from unlicensed sober living homes referring clients to a behavioral health business that billed for incomplete or unprovided addiction and mental health services.
- Happy House Behavioral Health LLC is accused of transferring $5 million in Medicaid funds to a church that served as both its landlord and a recipient of the money, which the church described as a donation made in good faith.
- Attorney General Kris Mayes is leading an ongoing effort that has resulted in charges against over a hundred individuals and multiple companies for Medicaid fraud and operating unlicensed sober living homes, with many cases involving Native American communities.
- The fraud caused payment suspensions for over 100 providers and left many Native American clients, mainly Navajos, homeless on Phoenix streets after sober living homes lost funding and evicted residents.
102 Articles
102 Articles
Sober Living Scheme: AZ AG Mayes addresses fraud
The Arizona Attorney General's Office is prosecuting the latest case that is related to the Sober Living Crisis and the scandal involving Arizona's Medicaid agency, AHCCCS. FOX 10 Investigator Justin Lum sat down with AG Mayes, two years since the state finally began to crack down on the problem.
22 Charged in Arizona Medicaid Fraud Scheme Allegedly Funneling Millions of Dollars to African Migrant Church in Phoenix and to Rwanda
Twenty-two defendants were indicted this week in Phoenix, Arizona, on felony charges, including money laundering, theft, conspiracy, fraud, and forgery, in a $60 million scheme that allegedly diverted medicaid funds meant for sober living programs to a church for East African migrants. The 51-count indictment announced by the state’s Democratic Attorney General on Tuesday alleges that Happy House Behavioral Health billed the state over $60 milli…


Church, 20 people charged in $60M Medicaid scam stealing from taxpayers and exploiting vulnerable
While hardworking Americans continue to pay into the Medicaid system, intended to help those in need, oversight failures have left it vulnerable to scammers.On Tuesday, Arizona Attorney General Kris Mayes announced 22 new indictments relating to a sober living home fraud case.'This invites fraudsters and criminals to take bigger and bigger chunks out of an ever-expanding pie.'The AG’s investigation accused Happy House Behavioral Health LLC of re…
22 New Indictments Reported In Arizona’s Sober Living Home Scandal
By Dave Mason Arizona Attorney General Kris Mayes on Tuesday announced 22 new indictments in a widespread Medicaid scandal that reportedly cost taxpayers millions of dollars and left drug rehabilitation clients homeless. The scandal has involved convicted and alleged Phoenix scammers in multiple fraud cases concerning sober living homes, which serve clients undergoing drug rehabilitation....
20 People, Church, and Health Business Charged in Arizona Sober Living Fraud Case
PHOENIX — A sweeping indictment announced Tuesday charges 20 individuals, a behavioral health company, and a church in connection with a $60 million Medicaid fraud scheme tied to Arizona’s sober living system. According to authorities, Happy House Behavioral Health LLC fraudulently billed the state’s Medicaid program — the Arizona Health Care Cost Containment System (AHCCCS) — for mental health… Source
Over 20 charged in alleged sober home fraud in Arizona
(NBC, KYMA/KECY) - At least twenty people, a health care business and a church have been charged in a sober living scheme in Arizona. The sober-living home scandal has cost Arizona taxpayers $2 billion dollars to date. The latest indictment adds a new twist: Some of the money allegedly was diverted to Africa. According to a 26-page indictment, Happy House Behavioral Health was paid over $60 million by the Arizona Health Care Cost Containment Sys…
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