Arizona Attorney General Kris Mayes Tackles Sober Living Scheme Fraud
PHOENIX – The Arizona Attorney General’s Office is intensifying efforts to address a significant fraud scandal within the Sober Living Scheme and Medicaid system, following a troubling history that has cost the state an estimated $2 billion. In a recent interview, AG Kris Mayes discussed these ongoing challenges, particularly in light of a new indictment involving nearly 20 individuals, a behavioral health provider, and a church accused of orchestrating a $60 million fraud against the Arizona Health Care Cost Containment System (AHCCCS).
The investigation focuses on allegations against Happy House Behavioral Health and its co-defendants, who purportedly engaged in patient brokering and exploited sober living environments to defraud Medicaid. They are further accused of funneling millions to Hope of Life International Church and entities in Rwanda. Defendants have entered not-guilty pleas.
Attorney Joshua Kolsrud, representing Pastor Theodore Macuranyana, criticized the AG’s indictment, labeling it as unjust prosecutorial overreach that lacks concrete evidence. Kolsrud stated that the AG’s Office is deflecting responsibility for its own shortcomings by targeting innocent parties.
This scandal has resulted in serious public health ramifications, particularly affecting thousands of victims, predominantly Native Americans, who were denied proper substance abuse and mental health services. Since 2023, over 120 individuals and entities have faced charges, yet very little of the lost funds have been recovered.
Reflecting on systemic failures, AG Mayes emphasized the need for reform within state agencies like AHCCCS, indicating that restoration efforts may span a decade. She underscored that the culture of negligence allowed this crisis to proliferate and stressed the importance of thorough oversight to prevent future occurrences.
As investigations continue, the AG’s Office remains committed to uncovering the truth and ensuring accountability, stating, "This is about a government failure, and we’re working on rectifying that."
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
