140 Indicted in Massive Sober Living House Scheme  - Addiction/Recovery eBulletin

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May 14, 2026 – Arizona officials are investigating a massive sober living fraud scheme that stole billions in taxpayer dollars and targeted vulnerable Native Americans. Attorney General Kris Mayes reported 140 indictments to date and a 92% decline in fraudulent billing on the American Indian Health Plan since 2023.

It is a scheme that FOX 10 investigators have covered for more than four years. Vulnerable people battling addiction were preyed upon by bad actors who promised rehabilitation services but rarely provided any. Many of the victims were Native Americans who were kidnapped from reservations and housed in unlicensed and unregulated sober living homes across Arizona. In some cases, victims died when the systems that were supposed to protect them failed.

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