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.Justice for Natives Press Release.

1.Justice for Natives Press Release.

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