Arizona Officials Accused of Ignoring Warning in Sober Living Scam Class Action Lawsuit
Arizona state officials are facing a class action lawsuit for allegedly turning a blind eye to a $2.8 billion scam involving fake sober living homes targeting Native American clients. This scheme, suspected of lasting for years, was quite elaborate. The scammers set up businesses posing as providers of sober living services to Native American clients. They would then enlist clients through various means, including hiring individuals to persuade people to join these facilities.
Once clients were signed up, these fraudulent businesses would bill the state for services they never actually rendered. Shockingly, many clients who entered these facilities reportedly ended up more addicted than when they entered. Tragically, some clients lost their lives in these fake sober living homes, while others went missing and remain unaccounted for to this day.
A pivotal point in this story comes from a whistleblower who, in 2019, reached out to the Arizona Health Care Cost Containment System to expose the inner workings of these deceitful businesses. The whistleblower even provided names of individuals he suspected to be involved in these illicit activities. Their suspicions peaked when they realized that the billing for their rehab company had significantly spiked, despite no increase in services provided.
According to the lawsuit, an affidavit from a special agent at the Arizona Attorney General’s Office supported the whistleblower’s claims of a coordinated group pulling the strings behind the scenes, dubbed “the reservation.” However, it is alleged that the whistleblower’s report was swiftly shut down by the Arizona Attorney General’s Office without a thorough investigation.
The legal team behind the lawsuit argues that had officials taken immediate action when alerted by the whistleblower, the situation might not have escalated to the colossal $2.8 billion scam it ultimately became. The case raises critical questions about oversight and accountability within the state authorities. Here’s to hoping that justice prevails for the victims of this elaborate and horrifying scam.
