PHOENIX, AZ – Forty-two people have been arrested in Arizona across 10 separate cases in connection with a multi-billion-dollar sober living home fraud that targeted Native Americans, leaving thousands missing or dead.
The Enforcement Action
Arizona Attorney General Kris Mayes announced the sweeping arrests on Wednesday, June 24. The 42 individuals face severe charges across multiple indictments, including:
- Fraudulent billing and grand theft
- Conspiracy and vulnerable adult abuse
- Manslaughter and negligent homicide
This massive crackdown brings the total number of individuals indicted in the ongoing investigation to nearly 180, with 41 convictions secured so far and 200 cases still under active review.
A Devastating Human Toll
Between 2019 and 2023, thousands of Native Americans from Arizona and as far away as Montana fell victim to the scheme. Reports show victims were targeted on reservations, forced into unmarked vans under false pretenses, given drugs or alcohol, and held prisoner in unlicensed sober living facilities.
Once inside, operators enrolled the victims in the American Indian Health Program through the state’s Medicaid agency (AHCCCS). The fraudulent homes then billed the state in excess of $8,000 per day per patient for services that were never provided.
When the funding ran out, victims were routinely ejected onto the street or abandoned in remote rural areas. A 2024 class-action lawsuit alleges that up to 2,000 people died or remain missing as a direct result of this operation.
Taxpayer Costs And Luxury Lifestyles
State officials estimate the total cost of the fraud at $2.8 billion in stolen taxpayer funds.
During the press conference, the Attorney General’s office released body camera footage from a search warrant executed at the estate of a doctor convicted in the scheme. The footage revealed a sprawling luxury estate filled with designer goods and high-end vehicles—funded entirely by the exploitation of vulnerable patients.
Advocates Warn Danger Remains
While state authorities have increased enforcement, local native advocates warn that the threat is far from over. Reva Stewart, founder of the non-profit Turtle Island Woman Warriors, confirmed that recruiters are still actively attempting to poach vulnerable individuals on the ground.
“It’s still happening,” Stewart stated. “And it’s going to continue to happen if everybody keeps pointing fingers.”
