Arizona prosecutors have indicted 22 people — including operators of a behavioral health company and a church — over an alleged $60 million Medicaid fraud scheme tied to addiction treatment and sober living homes.
Arizona prosecutors have indicted 22 people — including operators of a behavioral health company and a church — over an alleged $60 million Medicaid fraud scheme tied to addiction treatment and sober living homes.
According to the indictment announced Tuesday, Happy House Behavioral Health LLC billed the state’s Medicaid program, AHCCCS, for services that were never provided, only partially completed, or for clients who were deceased or incarcerated.
Authorities say the company worked with unlicensed sober living homes, which referred clients in exchange for payments — a violation of Arizona law. The Medicaid funds were then funneled back to the homes, creating what investigators describe as a kickback-style operation.
Among the most striking details is a money laundering charge involving Hope of Life International Church, which allegedly received a $5 million payment from Happy House in July 2023. The church later transferred $2 million of that to an entity in Rwanda.
In a statement, the church denied any wrongdoing, saying the money was accepted as a good-faith donation from a licensed tenant.
“The church’s only relationship was that of a landlord and, later, as a recipient of a donation — a donation accepted in good faith,” the church said.
The charges include conspiracy, fraud, forgery, theft, and money laundering. The Arizona Attorney General’s office says this is part of a larger crackdown on fraudulent sober living operations, many of which have targeted Native American communities.
Over the past year, more than 100 individuals and companies have been charged in similar cases. State officials say the scam has left an unknown number of tribal members — particularly from the Navajo Nation — homeless in Phoenix after fake rehab centers closed and evicted residents.
Some individuals were reportedly picked up in unmarked vans and transported from remote parts of the reservation to the city under false promises of treatment.
Payments to more than 100 healthcare providers have now been suspended as the state works to root out systemic abuse in the addiction treatment sector.
The investigation is ongoing, and state officials say more indictments may follow.
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The Israeli military has issued an evacuation advisory for Iranian civilians living near weapons production sites and associated infrastructure within Iran. The message was shared on the social media platform X in both Arabic and Farsi by an official military spokesperson.
Iran says it is ready to end its retaliatory strikes on Israel, but blames both Tel Aviv and Washington for blocking de-escalation, accusing them of deliberately sabotaging nuclear talks and prolonging the conflict for strategic gain.
In a phone call that took place on Donald Trump's 79th birthday, he and Russian President Vladimir Putin discussed ending the "war" in the Middle East and planned prisoner swaps in Ukraine. According to reports, Putin also extended birthday wishes to his U.S. counterpart during the call.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 15th, covering the latest developments you need to know.
A massive manhunt involving state police and the FBI was in full force Saturday evening for a gunman who posed as a police officer before killing a senior Democratic state assemblywoman and her husband. Governor Tim Walz has described the attack as a "politically motivated assassination."
The Israeli military has issued an evacuation advisory for Iranian civilians living near weapons production sites and associated infrastructure within Iran. The message was shared on the social media platform X in both Arabic and Farsi by an official military spokesperson.
Iran says it is ready to end its retaliatory strikes on Israel, but blames both Tel Aviv and Washington for blocking de-escalation, accusing them of deliberately sabotaging nuclear talks and prolonging the conflict for strategic gain.
Azerbaijan is facilitating the evacuation of foreign nationals from Iran, a process that has included private citizens and diplomatic staff. The assistance has involved providing transit for Kyrgyz citizens and, subsequently, the staff and families of the Kyrgyz Embassy in Tehran.
China has successfully mastered the technology to produce Yttrium-90, a critical medical isotope used in radiation therapy for liver cancer, within a commercial nuclear reactor.
In a phone call that took place on Donald Trump's 79th birthday, he and Russian President Vladimir Putin discussed ending the "war" in the Middle East and planned prisoner swaps in Ukraine. According to reports, Putin also extended birthday wishes to his U.S. counterpart during the call.
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