Arizona sober living home operators charged in patient referral kickback scheme

An undercover operation has led to the indictment of 21 people authorities say ran unlicensed sober or transitional living homes and violated Arizona law that prevents payment in exchange for patient referrals.

The individuals agreed to send 75 patients to a behavioral health care facility in exchange for a kickback of $300 a week per person, according to the Arizona Attorney General's Office.

But that behavioral health facility was fake — it was actually the work of undercover state investigators from the Attorney General's Office and Arizona Health Care Cost Containment System, the state's Medicaid program often known by its acronym, AHCCCS. The 75 patients were enrolled in AHCCCS' American Indian Health Program, officials said, which covers treatment costs at taxpayer expense.

Attorney General Kris Mayes and AHCCCS under the administration of Gov. Katie Hobbs have cracked down on such schemes in recent months, barring hundreds of unlicensed home operators from receiving payments through AHCCCS and the American Indian Health Program. Many of the operators preyed on the state's tribal communities and billed the state for services that were not actually provided, officials have said.

The latest indictment alleges an organized criminal operation of patient brokering. The defendants were indicted on charges of operating an illegal enterprise, conspiracy and accepting payment for patient referrals.

The operators are accused of bringing their patients to the phantom facility on Nov. 16 for a "grand opening," according to Mayes' office. They found state investigators waiting to intercept the patients and move them to licensed facilities for care and housing, according to the Attorney General's Office.

Ten of the defendants have been publicly identified. The names of the other 11 were redacted from a copy of the indictment released by Mayes' office because those people haven't been served a copy of the indictment, according to Mayes' spokesperson Richie Taylor.

The defendants identified by Mayes' office and named in the indictment are: Vestine Mukarukundo, Nasibu Bauni, Pierrette Kagame, Jean Bosco Nsabimana, Immaculate Nutesi, Espoir Muhumure Nzabakiza, Willy Rutaysire, Jose Miguel Saturnino-Corrales, Julienne Swaka and Angela Dauz Turgano.

Attorneys for the defendants did not respond to emailed requests or declined to comment on Wednesday.

Richard Gaxiola, the attorney for Turgano, said Turgano "is presumed innocent under the law. We caution the public from reaching any preconceived notions of guilt as an indictment is merely an allegation of wrongdoing and is not considered evidence."

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669.

This article originally appeared on Arizona Republic: Arizona sober living home operators charged with organized crime