20 people, health care business and church charged in sober living scheme in Arizona
The recent indictment in Arizona has shed light on a massive fraud scheme that defrauded the state’s Medicaid program of $60 million. The scheme involved billing for mental health treatment and addiction rehabilitation services that were either never provided or only partially completed. Happy House Behavioral Health LLC, a mental health business, was at the center of the alleged fraud, receiving payments for services that were not rendered and billing for clients who were deceased or incarcerated.
According to authorities, sober living homes referred clients to Happy House Behavioral Health, which then received payments from the Arizona Health Care Cost Containment System. In violation of state law, the behavioral health business then paid the homes for the clients. The indictment also included charges of money laundering, with allegations that Happy House Behavioral Health paid $5 million to Hope of Life International Church, which subsequently wired $2 million to an entity in Rwanda.
The charges against Happy House Behavioral Health include conspiracy, fraud, forgery, theft, and money laundering. The crackdown on fraudulent activities in the state has led to more than 100 people and several companies being charged in cases brought by Attorney General Kris Mayes’ office. The state has suspended payments to over 100 providers as part of the crackdown on Medicaid fraud and unlicensed sober living homes, many of which targeted tribal community members.
The impact of the scam has been devastating, leaving many Native Americans homeless on the streets of metro Phoenix as fraudulent sober living homes lost their funding. Navajos, in particular, have been disproportionately affected, with officials noting that individuals were often transported from distant locations on the Navajo Nation to the Phoenix area in unmarked vans.
As the investigation into the fraud scheme continues, it is crucial to hold accountable those who exploit vulnerable populations for financial gain. The crackdown on Medicaid fraud and unlicensed sober living homes is a step towards ensuring the protection of those in need of mental health and addiction rehabilitation services.
