20 People, Health Care Business and Church Charged in Sober Living Scheme in Arizona
- An indictment filed Tuesday in Arizona accused two dozen individuals, along with a behavioral health company and a church, of participating in a $60 million Medicaid fraud scheme.
- The charges arise from a scheme in which sober living facilities directed individuals to a behavioral health company that submitted claims for services that were either not delivered or only partially performed.
- The behavioral health provider, Happy House Behavioral Health LLC, allegedly billed for deceased and incarcerated clients and funneled payments back to the homes in violation of state law.
- Money laundering charges include $5 million paid to Hope of Life International Church in 2023, which later sent $2 million to Rwanda; the church denies wrongdoing, stating it was a landlord and accepted donations in good faith.
- Authorities have charged numerous individuals and entities in Arizona as part of ongoing efforts to combat fraudulent billing within Medicaid and illegal operations of sober living facilities, which resulted in many Native Americans, predominantly Navajos, becoming homeless following the suspension of funding.
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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.


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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