Arizona Medicaid Fraud: $60 Million Scheme Unveiled
Phoenix – May 23, 2024 – A $60 million Arizona Medicaid fraud scheme has resulted in indictments against 20 individuals, a mental health business, and a church, according to a new report that sheds light on this complex case. The accused allegedly billed the state’s Medicaid program for services never rendered, or provided to ineligible recipients. This alleged fraud has caused significant harm to vulnerable communities. For further details, read on.
Arizona Medicaid Fraud Crackdown: $60 Million Scheme Unveiled
The Allegations: A Web of Deceit
Phoenix, Arizona – A sweeping indictment has charged 20 individuals, a mental health business, and a church in connection with an alleged $60 million fraud scheme targeting Arizona’s Medicaid program. This indictment is the latest in a series of crackdowns focusing on sober living homes within the state.
The scheme allegedly involved billing the arizona health Care Cost containment System (AHCCCS) for mental health treatment and addiction rehabilitation services that were either never provided, only partially completed, or billed for clients who were deceased or incarcerated.
Happy House Behavioral Health at the Center
The indictment specifically alleges that Happy House Behavioral Health LLC received considerable payments for these fraudulent services. Authorities claim that sober living homes referred clients to Happy House Behavioral Health, which then received funds from AHCCCS and later paid the homes for the referrals, a practice that violates state law.
Did you know? Medicaid fraud not only drains taxpayer dollars but also undermines the integrity of healthcare services for vulnerable populations.
Money Laundering Allegations: Church Involvement
Adding another layer to the complexity, the indictment includes money laundering charges. These charges allege that Happy House Behavioral Health paid $5 million to Hope of Life International Church in July 2023. Subsequently, the church allegedly wired $2 million to an entity in Rwanda.
The charges: Conspiracy, Fraud, and More
Happy House Behavioral Health faces a multitude of charges, including conspiracy, fraud, forgery, theft, and money laundering. The Associated Press has reached out to a lawyer representing Happy House Behavioral Health for comment.
Hope of Life International Church Responds
Hope of Life International Church issued a statement asserting that it was unjustly charged with money laundering. The church claims it accepted a donation from a licensed sober living facility, which was a tenant of the church, and was later accused of defrauding the state’s Medicaid program. The church maintains it had no knowledge of the facility’s alleged illegal activities.
The church’s only relationship was that of a landlord and, later, as a recipient of a donation – a donation accepted in good faith, consistent with its mission and longstanding practice.Hope of Life International Church
Pro Tip: Non-profit organizations should implement stringent due diligence procedures when accepting large donations to ensure compliance with financial regulations and avoid potential legal repercussions.
Statewide Crackdown: Targeting Medicaid Fraud
Attorney General Kris Mayes’ office has charged more than 100 people and several companies as part of the state’s crackdown on medicaid fraud and unlicensed sober living homes. many of these homes allegedly targeted tribal community members. The state has suspended payments to over 100 providers as part of this ongoing effort.
Impact on Native American Communities
The fraudulent activities have had a devastating impact,leaving an unknown number of Native Americans homeless in the Phoenix metropolitan area.As fraudulent sober living homes lost their funding, they evicted former residents onto the streets.
Navajo citizens account for a critically important portion of Native Americans struggling with addiction who have been affected by the scam. navajo officials report that individuals were sometimes picked up in unmarked vans and transported to the Phoenix area from distant locations within the Navajo Nation, which spans across northern Arizona and parts of New Mexico and Utah.
