The founder and owner of Louisa, Ky.-based Addiction Recovery Care was indicted on one count of wire fraud and two counts of money laundering after allegedly selling the same Employee Retention Credit assets to multiple buyers and obtaining millions of dollars in advance payments, according to a June 4 news release from the Justice Department.
Timmy Robinson Jr. was indicted the same day Addiction Recovery Care said he was stepping down as CEO, effective immediately. Cassandra Webb will serve as interim CEO while remaining president and COO, CBS affiliate WKYT reported June 4.
Here are four things to know:
- According to the indictment, Mr. Robinson caused Addiction Recovery Care to enter into an agreement in July 2025 under which a buyer made a $2.7 million advance payment for rights to an anticipated Employee Retention Credit tied to the organization’s first-quarter 2021 payroll.
- The indictment also accuses Mr. Robinson of causing Addiction Recovery Care to assign rights to another Employee Retention Credit, based on second-quarter 2021 payroll, to the same buyer.
- According to the indictment, Mr. Robinson caused Addiction Recovery Care to sell the same first- and second-quarter 2021 Employee Retention Credit assets to a second buyer in November 2025. The second buyer paid a $4.7 million advance payment Nov. 12, 2025. Prosecutors accuse Mr. Robinson of falsely representing that the assets were available for purchase and had not previously been sold or encumbered.
- He faces up to 20 years in prison on the wire fraud charge and 10 years in prison on each money laundering charge if convicted.
At the Becker's Fall Behavioral Health Summit, taking place November 4–5 in Chicago, behavioral health leaders and executives will explore strategies for expanding access to care, integrating services, addressing workforce challenges and leveraging innovation to improve outcomes across the behavioral health continuum. Apply for complimentary registration now.