Arizona taxpayers were defrauded of hundreds of millions of dollars and Indigenous people were victimized by individuals posing as healthcare providers.

According to Arizona Attorney General Kris Mayes, this situation was described as a “shocking government failure.”

The criminals fraudulently charged the state for mental health and addiction treatment that was never actually provided. The funds were disbursed through Arizona’s Medicaid program, the Arizona Health Care Cost Containment System (AHCCCS).

Arizona Scam

Disturbingly, some of the billed services were supposedly given to individuals who were deceased, incarcerated, or even underage. Mayes highlighted cases where bills were submitted to AHCCCS for services that were clearly impossible, such as alcohol rehabilitation for a 4-year-old who was not present at any facility and did not require treatment.

These indigenous Arizonans were targeted by criminals running illegitimate treatment centers, who actively sought them out in vulnerable locations such as gas stations, grocery stores, parking lots, and bus stops near Indian Health Service clinics.

In certain instances, the targeted people had to resort to extreme measures like jumping out of windows and climbing over walls in order to escape these facilities, most of which were situated in the Phoenix area.

On Tuesday morning, Arizona Governor Katie Hobbs, Attorney General Kris Mayes, and representatives from 13 Arizona tribes held a news conference to unveil the extent of the fraud.

FBI

The investigation, involving the FBI and the U.S. Attorney’s Office, has led to the indictment of at least 45 individuals by Mayes’ office. To date, approximately $75 million connected to these fraudulent schemes has been seized or recovered.

Mayes expressed his belief that this scandal ranks among the largest in the history of Arizona, particularly in terms of government-related wrongdoing.

He emphasized the devastating impact this fraud has had on human lives, stating that while these scammers exploited random IDs to bill for millions of dollars in services, thousands of Arizonans were genuinely in need. Some of these individuals had been residing in these facilities or homes without receiving the necessary services they required.

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