Phoenix

Eviction Looms for Nearly 40 at Luxury Mesa Condo Amid Behavioral Clinic's Fraud Allegations

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Published on January 10, 2024
Eviction Looms for Nearly 40 at Luxury Mesa Condo Amid Behavioral Clinic's Fraud AllegationsSource: Google Street View

Nearly 40 individuals are facing eviction from a luxury condo complex in Mesa known for sober living units, according to a report by FOX 10. Mesa Police confirmed that 35 people are in the process of being ousted from the Canal on Baseline condos. The residents have been at the center of a scandal involving the Arizona Behavioral Health Clinic, which was suspended last month by Arizona’s Medicaid agency over allegations of fraud, including claims for unprovided services.

The state’s Medicaid agency, Arizona Health Care Cost Containment System (AHCCCS), has identified Arizona Behavioral Health Clinic as responsible for housing these individuals. This comes amidst an investigation revealing the Canal on Baseline is not licensed by Arizona's Department of Health Services to treat patients, putting the legitimacy of the Arizona Behavioral's operations at this location in question. Arizona Behavioral is, licensed but not at Canal on Baseline, causing concern among state officials and members of the community affected by these unlicensed sober living facilities.

Meanwhile, the issue stretches beyond just a single complex. A recent press conference on May 16, referenced by FOX 10, highlighted the broader problem of fraudulent rehab facilities. Arizona Attorney General Kris Mayes described the situation as akin to a game of "whack-a-mole" with new providers cropping up to exploit Native Americans struggling with addiction. Gov. Katie Hobbs and Lieutenant Governor Monica Antone addressed the magnitude of the scandal, with Antone stating, "They entice them with drugs to stay in there, alcohol, methamphetamine," and Hobbs commenting on the restrictions such individuals face regarding leaving the facility or contacting relatives.

The impact on the local community has been palpable. Residents have witnessed a steady flow of police responses, with Mesa Police reporting over 150 calls to the "Canal on Baseline" since November 2022. A concerned resident, referred to as "Crystal" for anonymity, told FOX 10, "Almost any time of the day you will see multiple people out drinking, smoking, loud." The city is currently undertaking a multi-department investigation to ascertain the root of the alleged criminal activity and is working with the AG's office and the Department of Health Services to address concerns.

Owners of the condo complex, Samir Holdings, Inc., have denied that the complex operates as a sober living home. Samir Sawhney, a managing member of the company, assured that they comply with city codes. However, he acknowledged leases to behavioral health clinics and explained that evictions have occurred in certain problematic units. 

Phoenix-Real Estate & Development