The former CEO of a behavioral health provider has been indicted for allegedly funneling millions of dollars from the business to himself.
Kevin McKenzie, former COO and CEO of Whitewater, Ariz.-based Apache Behavioral Health Services, was indicted by a grand jury on 40 counts related to fraud, according to a Dec. 22 news release from the Justice Department. A co-conspirator, Corina Martinez, was also charged in the case.
Apache Behavioral Health Services is operated by the White Mountain Apache Tribe to provide behavioral health services to its members.
Between 2015 and July 2023, Mr. McKenzie funneled over $14 million in fraudulent proceeds from the behavioral health provider to a shell company he owned, the Justice Department alleged. He made significant efforts to hide the scheme through money laundering and tried to persuade a witness to lie to investigators, the Justice Department alleged.
Ms. Martinez, owner of Evolved LLC, a behavioral health provider, entered a phony referral contract with Mr. McKenzie, the Justice Department alleged. Mr. McKenzie paid $15 million to Ms. Martinez's company from Apache Behavioral Health Services, and the two split the profits, according to the Justice Department.
Ms. Martinez allegedly paid $800,000 of Mr. McKenzie's personal credit card bills and bought him luxury items, including a $952,000 home.