10 charged with entering kickback agreement with fake behavioral health facility

Ten people were charged in an alleged scheme to transport patients from unlicensed sober living and transitional homes to a fake behavioral health facility in exchange for payments. 

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According to a Dec. 6 news release from the Arizona attorney general, the defendants allegedly ran several unlicensed homes in the Phoenix area. According to the release, the defendants entered an agreement to send 75 of the unlicensed facilities’ patients, many of whom received coverage through the American Indian Health Plan administered by the state, to the fake facility, which would pay the defendants $300 per patient per week. 

Unaware the facility was fake, the defendants allegedly transported 75 patients to the facility, where they were met by investigators from the attorney general’s office. Arizona Health Care Cost Containment System investigators and care managers met the patients to ensure they received care and were placed in legitimate housing and treatment. 

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