Native Issues
Health Justice
May 29, 2025

New indictments and agency resignations mark progress in Medicaid fraud case


May 29, 2025

Justice For Natives praised recent developments in Arizona’s Medicaid sober-living fraud probe, citing 22 new indictments announced May 20 that bring the total charged to more than 120, according to a May 28 press release. The grassroots coalition highlighted $140 million recovered and 25 convictions to date.

The coalition credited Arizona Attorney General Kris Mayes and Gov. Katie Hobbs for decisive action. Key developments include a $60 million fraud case tied to Happy House Behavioral Health and a $34 million restitution order against L & L Investments. The April 30 resignations of AHCCCS Director Carmen Heredia and ADHS Director Jennie Cunico followed confirmation issues. Senate Bill 1308, signed April 18, mandates licensing and inspections of sober-living homes. A $6 million grant program was also launched to support Tribal Nations and nonprofits aiding victims.

  1. 1.Justice for Natives Press Release.

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