Man, woman accused of embezzling millions from tribal health care provider in Tucson
Kevin McKenzie and Corina Martinez have been indicted by a federal grand jury on 40 counts and are facing charges of embezzling millions of dollars from a tribal health care provider in Tucson, according to a news release from the U.S. Attorney's Office.
McKenzie, 47, and Martinez, 41, face various charges, including conspiracy to embezzle from an Indian tribal organization, embezzlement, theft concerning programs receiving federal funds, wire fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and engaging in monetary transactions in property derived from specified unlawful activity, the news release says. Additionally, McKenzie has been charged with attempted tampering with a witness, according to the news release.
The U.S. Attorney's Office said the indictment alleges that from 2015 to July 2023, McKenzie, who served as the chief operating officer and then the chief executive officer of Apache Behavioral Health Services, engaged in a scheme to defraud millions of dollars from the health care provider, which is an organization run by and under the laws of the White Mountain Apache Tribe to provide behavioral health services to its tribal members.
The U.S. Attorney's Office said McKenzie employed two contracts as a disguise to divert funds from the health care provider to himself. Initially, Apache Behavioral Health Services paid more than $32 million to Helping Everyday Youth. Following an agreement between McKenzie and Helping Everyday Youth, more than $14 million in fraudulent proceeds was funneled to a shell company owned by McKenzie, the U.S. Attorney's Office said. To conceal this scheme, McKenzie attempted money laundering and persuaded a witness to lie to investigators, as disclosed by the U.S. Attorney's Office in the news release.
According to the U.S. Attorney's Office, the indictment said McKenzie, in his role as the CEO of Apache Behavioral Health Services, and Martinez, through her company, Evolved LLC, engaged in a fraudulent referral contract to embezzle more funds from the health care provider. As a result of this arrangement, McKenzie directed Apache Behavioral Health Services to pay $15 million to a second company owned by Martinez, Evolved Healthcare Inc., the U.S. Attorney's Office said.
During the fraudulent activities, McKenzie and Martinez divided the illicit proceeds between themselves, the U.S. Attorney's Office said.
Martinez provided substantial sums of money to McKenzie, contributing to the payment of at least $800,000 in personal credit card bills, the purchase of a $128,000 Rolls Royce Ghost, and the acquisition of a $952,000 home for McKenzie's family, the U.S. Attorney's Office said. It was highlighted in the news release from the U.S. Attorney's Office that neither Evolved Healthcare Inc. nor Evolved LLC rendered any services for Apache Behavioral Health Services.
The FBI conducted the investigation for this case, and the U.S. Attorney's Office was handling the prosecution.
This article originally appeared on Arizona Republic: Man, woman accused of embezzling money from tribal provider in Tucson
