An extensive Medicaid fraud indictment has enveloped several individuals, including a former employee of the Arizona Department of Health Services (DHS). As reported by FOX 10 Phoenix, Laroie Davis and seven others were indicted last month by Arizona Attorney General Kris Mayes on charges relating to billing the state's Medicaid agency for behavioral health services that were allegedly not provided. These charges, totaling 27 counts, also highlighted massive payouts reaching nearly $55 million.
While having been released on his own recognizance, Davis has pled not guilty in his arraignment this week. Hailed as a health program manager at the Arizona State Hospital from 2017 until his employment ended in July of 2022, Davis is now facing scrutiny for actions purportedly undertaken while he held his official capacity. According to court documents obtained by Cinemetro, Davis was credited as the overseer of AHCCCS billing in the operation.
In a statement obtained by FOX 10 Phoenix, a DHS spokesperson shared, "Since taking office, Governor Hobbs and the impacted state agencies have taken the Medicaid fraud and abuse extremely seriously and are committed to assisting in any and all investigations." Nonetheless, due to the ongoing legal procedure, further comment could not be provided.
The indictment accuses Davis and others of using a series of businesses, including "A Path of Resilience" and "Helping Hands Realty," to orchestrate their alleged racketeering scheme. Suspended for fraud allegations, these companies once formed the edifice of the accused's operations, which now faces internal examinations by the Arizona Health Care Cost Containment System (AHCCCS). As reiterated by FOX 10 Phoenix, Carmen Heredia, CEO of AHCCCS, emphasized the suspension of payments to roughly 100 Medicaid providers amid credible fraud allegations following a crackdown initiated by new leadership in May 2023.
The investigation has revealed an underbelly of opulence, as evidenced by the extravagant collection of 26 cars, 20 properties, and luxury brand items seized by authorities, according to a report from Cinemetro. The Attorney General’s Office has, to date, seized $2.1 million from multiple bank accounts associated with the fraud charges. With the defendants also targeting members of the American Indian Health Program as part of their illicit activities, the depth of the scheme's implications resonates across the community's trust in the public health system.
