Arizona Medicaid fraud investigations involve tens of millions in losses

Authorities in Arizona are addressing major Medicaid fraud schemes involving addiction and mental health treatment services.

In one case, nurse practitioner Rita Anagho was sentenced to 14 years in prison for defrauding the Arizona Health Care Cost Containment System (AHCCCS) of more than $69 million through her Tusa Integrated Clinic. Anagho allegedly targeted vulnerable patients, including Native Americans, by billing for services not provided or inflating claims. She was ordered to pay $55 million in restitution, and authorities seized millions in bank accounts and real estate.

In a separate but related investigation, prosecutors have indicted individuals involved in a scheme where Happy House Behavioral Health LLC allegedly collected over $60 million through false or inflated claims for patients who were deceased, incarcerated, or hospitalized. The indictment alleges that $5.5 million was paid to Hope of Life International Church, with more than $2 million subsequently transferred to an entity in Rwanda. While the church maintains it accepted donations in good faith, trials for over 20 defendants related to these fraudulent operations are ongoing.