CORRUPTION DU JOUR –
Jan. 29, 2026 – A federal lawsuit accusing Addiction Recovery Care, or ARC, Kentucky’s largest treatment provider, of defaulting on an $8 million loan has a new twist. Just two and a half weeks after Angelica Capital Trust sued the embattled provider, accusing ARC of refusing to repay the $8 mil…a second company is seeking to join the case, arguing it has a prior claim to the money because it was the first to lend ARC a similar amount.
In both cases, the loans were secured through about $8 million in federal income tax credits ARC was to receive last year, said the filing Jan. 28 in U.S. District Court in New York by Clear Cove Opportunities Fund.
ARC sold the “very same” tax credits to both financial firms, which buy such credits from businesses that are “in need of immediate liquidity,” said Clear Cove’s filing. In turn, businesses repay the firms with interest when they receive the money from the Internal Revenue Service.
