Lawsuit filed in Arizona targeting fraudulent sober living homes

Arizona officials find themselves being propelled into the courtroom due to a class-action lawsuit filed against the state over fraudulent sober living homes. The slow wheels of justice are finally turning, as the case moves forward.

According to a complaint filed by BrewerWood Law Firm, thousands of Native Americans in Arizona fell victim to these schemes, resulting in a staggering $2.8 billion being stolen from Arizona taxpayers.

Attorney John Brewer, in an interview with KTAR News 92.3 FM’s Arizona’s Morning News, highlighted the significant amount of harm that was being inflicted, with the state having full knowledge of the situation.

According to Brewer, state officials were informed about fraudulent abuses of the American Indian Health Program back in 2019.

Arizona agencies sued over fraudulent sober living homes

BrewerWood Law Firm has filed a class-action complaint against two state agencies, including the Arizona Health Care Cost Containment System (AHCCCS).

According to the lawsuit, AHCCS is being held responsible for enabling fraudsters as it has overseen the American Indian Health Program.

According to Brewer, they were simply billing and AHCCS was approving the process.

According to Brewer, the Arizona Department of Health Services (ADHS), which is the state’s health department, should have taken immediate action to stop the fraud.

Just how bad were these fraudulent sober living homes?

According to Brewer, a significant number of the individuals involved in operating these fraudulent sober living homes originate from Nevada.

Arizona Governor Jan Brewer explained that when the healthcare providers arrived in Arizona, they recognized a lucrative opportunity within the fee-for-service program of the state-run Medicaid, known as AHCCCS. According to Brewer, they saw it as a billing bonanza and were quick to take advantage of it.

Native Americans were specifically targeted by fraudsters, with the Medicaid scams in Arizona becoming so widespread that in 2023, the Navajo Nation declared a public health state of emergency.

According to him, this phenomenon is commonly referred to as the “white van syndrome.” He explained that individuals would venture into the reservations.

Carson Leslie fell victim to these strategies when he entered one of these vans near Flagstaff, ultimately leading to his death.

According to fraud victim advocate Reva Stewart, these fraudulent sober living homes have caused approximately 2,000 people to die or go missing, which is not a rare occurrence.

“This is not just a program specific to Arizona; it involves federal funds and is one of the biggest Medicaid frauds in U.S. history,” he emphasized.

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