Arizona AG awards $6M in compensation for sober living home fraud scandal

Eleven Tribal nations and community members hurt by Arizona’s sober living home fraud scandal will benefit from a new wave of grants.

The Arizona Attorney General’s Office will distribute up to $500,000 in grants to each recipient through its Sober Living Home Support Program.

Attorney General Kris Mayes hopes the grants will alleviate economic loss and support recovery for Tribal members who were victimized by the fraudulent activity.

“Although we can never fully make up for the harm this fraud caused, we can make sure justice is served — and that Native Arizonans struggling with addiction have a recovery option they can rely on,” Mayes said in a news release.

Who received grants to alleviate damage caused by sober living home fraud scandal?

The grant amounts and organizations they went to:

• Pascua Yaqui Tribe $500,000
• Native Action Program $500,000
• Native American Fatherhood and Families Association $500,000
• Native Health $500,000
• Navajo Veterans Organization $500,000
• Tucson Indian Center $500,000
• Scottsdale Recovery Continued $498,956
• West Valley Health Equity $498,864
• San Carlos Apache Healthcare Corporation $475,436
• Defenders of Children $370,720
• Phoenix Indian Center $346,812

 

What was the Arizona sober living home fraud scandal?

The grants are meant to alleviate the harm inflicted upon hundreds of Native Americans who were targeted by Phoenix-area scammers who fraudulently billed AHCCCS, the state’s Medicaid system.

The first person convicted in connection with the fraudulent schemes was sentenced to 3½ years in prison in May 2024.

 

Ariell Olivia Dix, 37, helped establish fake behavioral health treatment centers that defrauded the American Indian Health Program within AHCCCS.

The Arizona sober living home fraud scandal was widespread. There are many similar cases involving criminals who stole taxpayer dollars under the guise of helping Native Americans with substance use disorder being, authorities said.

“While we continue to investigate and aggressively prosecute the individuals and entities who have defrauded the state of millions of dollars and exploited these vulnerable individuals, I am proud to announce the recipients of our new grant program for Tribal Nations and nonprofits to provide direct support to individuals impacted by this fraud,” Mayes said.

(Reprinted with permission Scottsdale Recovery Continued, photo submitted)