AHCCCS Fraud - Federal Charges & Defenses

AHCCCS insurance fraud is a severe issue that affects not only the state's resources but also the lives of vulnerable individuals who depend on this system for their healthcare needs. AHCCCS stands for Arizona Health Care Cost Containment System, a medicaid program designed to help individuals with insurance costs.


Recent allegations of fraud in Arizona have shed light on the growing problem, bringing attention to the various fraudulent practices employed by some providers.


This article will explore the complex legal landscape surrounding AHCCCS insurance fraud, focusing on understanding the charges, consequences, and potential defense strategies.


If you are accused of health care fraud, it is important that you speak with a qualified criminal defense attorney as soon as possible.


A complete list of suspended provides can be found here. If you find your name or business name on this list, do not wait - give us a call immediately at (480) 680-9769.


Whether you are in the pre-charge stage or have already been arrested and are facing federal charges, speak to an aggressive healthcare insurance fraud attorney at Kolsrud Law Offices now.

Contact us today to schedule a free consultation and learn more about how we can help you.

Understand Accusations of AHCCCS Insurance Fraud

Understanding AHCCCS Insurance Fraud & Its Background

Since the pandemic began, Arizona authorities have charged dozens of people and businesses with allegations of AHCCCS fraud. The total amount of money involved in these cases is staggering, with fraudulent claims exceeding $100 million. To put it in perspective, the amount billed under the Native American AHCCCS code went from $53 million in 2019 to a sky high amount of $668 million in 2022.


Since the beginning of 2022, the AHCCCS Office of the Inspector General has terminated 87 service providers who were believed to be involved in targeted fraudulent activities.


Additionally, the office has suspended various payments to these providers. To further defend the level of care and services, AHCCCS has also increased resource allocation for monitoring quality and has started performing in-person reviews at facilities to confirm the health and safety of its members.


AHCCCS insurance fraud includes a wide range of fraudulent practices, such as billing for services not rendered, double billing, billing for deceased patients, and other deceptive practices targeting Arizona Medicaid benefits. Here's what it encompasses:


  • Billing for Nonexistent Services: Some providers have been accused of billing the state for treatment never provided, such as charging for more hours than they stayed open or for 24-hour services.
  • Deceptive Billing Practices: Other practices include double billing and billing for patients who were elsewhere at the time of alleged treatment.
  • Targeting Vulnerable Populations: Instances have emerged where providers have specifically targeted Native Americans, preying on their needs for drug and alcohol rehab, only to leave them stranded.


Scope of Healthcare Fraud Charges

The scale of AHCCCS fraud is widespread with allegations involving hundreds of millions of dollars. According to this press release, in May of 2023, Governor Katie Hobbs and Arizona Attorney General Kris Mayes joined the AHCCCS Office of Inspector General (OIG) to suspend payments of more than 100 health providers and behavioral health services that are accused of healthcare insurance fraud and abuse.


The Governor has also ordered third-party audits to determine the extent of the fraud. Meanwhile, efforts are being made to examine fraudulent schemes that take advantage of Native Americans, an issue aggravated by the fact that Native Americans are 500% more likely to experience alcohol-induced deaths and 20% more likely to die from drug use, according to a 2021 report by Arizona’s Department of Health Services.


Impact on Vulnerable Communities

The impact of AHCCCS fraud extends beyond monetary loss to the state. It undermines trust in the healthcare system and disproportionately affects vulnerable communities, particularly Native Americans.


  • Human Cost: The fraudulent schemes have led to human suffering, such as a sober living facility leaving individuals stranded far from home or exploiting their healthcare needs.
  • Community Disruption: The proliferation of fraudulent group homes has caused unrest in neighborhoods, leading to fear and uncertainty among residents.
  • Erosion of Trust: The continued occurrence of fraud has eroded public trust in AHCCCS and healthcare providers, making it more challenging for genuine providers to serve the community.
Recent White Collar Criminal Cases

Recent Cases in Arizona of Arizona Healthcare Insurance or AHCCCS Fraud

The following are some illustrative cases and examples that we gathered from various news articles that highlight the gravity and complexity of AHCCCS fraud:


  • Focused Family Services Accusation: Accused of billing the state using the names of deceased people, although the owner denied the allegations. Their  medical billing company, ProMD Solutions, is the same company listed on 10 other corporate records that appear on the AHCCCS list. (Source)
  • Diana M. Moore's Guilty Plea: Admitted to committing wire fraud and money laundering that collected over $22 million from Arizona's Medicaid system between 2020 and 2021. (Source)
  • The Hensons' Indictment: Charged with fraudulently billing AHCCCS for services not rendered, amounting to $1.2 million in fraudulent bills over a 9-month period. (Source)
  • Preying on Native Americans: The emergence of schemes that recruit Native Americans for substance abuse or mental health services without providing them, capitalizing on Arizona Medicaid benefits. (Source)
Penalties for Insurance & Healthcare Fraud Under 18 US Code 1347

Penalties for AHCCCS Fraud - State and Federal Charges

AHCCCS fraud is not confined to state-level prosecution. Since AHCCCS is tied to Medicaid, a federally funded program, charges can be brought under federal laws.


Federal Charges May Include:

  • Healthcare Fraud (18 U.S.C. § 1347): Conviction under this statute carries severe penalties, including imprisonment for up to 10 years, and fines.
  • False Claims Act (31 U.S.C. §§ 3729–3733): This allows for civil penalties for knowingly submitting false claims, including treble damages.
  • Wire Fraud (18 U.S.C. § 1343): Engaging in a scheme to defraud using wire, radio, or television communication can lead to imprisonment for up to 20 years.
  • Mail Fraud (18 U.S.C. § 1341): Similar to wire fraud, this statute includes fraud conducted via the postal service, and carries similar penalties.


State Penalties in Arizona

Under Arizona Revised Statutes, healthcare fraud and related offenses can be severely penalized:

  • Healthcare Fraud: Conviction can lead to imprisonment for up to 20 years.
  • Wire Fraud: Sentence of up to 20 years.
  • Money Laundering: Up to 10 years.
  • Aggravated Identity Theft: Mandatory, consecutive 24-month prison sentence.


Potential Fines

The fines for AHCCCS fraud can be substantial, reflecting the gravity of the offense:

  • State Fines: Under Arizona law, fines can range from $1,000 to $150,000 per charge, depending on the nature and amount of the fraudulent claims.
  • Federal Fines: Under federal law, fines for healthcare fraud can reach up to $250,000 for individuals and $500,000 for organizations.


Business License Suspension or Revocation

One significant consequence of a conviction for AHCCCS fraud is the potential loss of professional licenses:

  • Medical Licenses: Healthcare providers convicted of fraud may lose their medical licenses or face suspension, affecting their ability to practice.
  • Business Licenses: Organizations involved in fraud may have their business licenses suspended or revoked, leading to closure or severe restrictions on operations.


Felony Convictions on Your Criminal Record

The lasting impact of a felony conviction is profound:

  • Criminal Record: A conviction leads to a permanent criminal record, affecting future employment, professional licensing, and personal reputation.
  • Civil Penalties: A conviction may also lead to civil monetary penalties, asset forfeitures, and exclusion from participating in federal healthcare programs like Medicaid and Medicare.


Below is a table outlining the different penalties.


Type of Penalty Arizona Revised Statute Description
Fines A.R.S. § 36-2918 Fines may range from $2,000 to $10,000 depending on the offense's severity.
Imprisonment A.R.S. § 13-2310 Jail or prison sentences can range from six months to several years.
Business License Suspension A.R.S. § 32-1451 Business licenses may be suspended or revoked.
Felony Conviction A.R.S. § 13-2310 The offense may result in a felony conviction that can affect future employment.
Federal Crime Jurisdiction 18 U.S.C. § 1347 Certain offenses may fall under federal jurisdiction, carrying their own set of penalties.
Federal insurance fraud defenses

Top 15 Possible Defenses to Accusations of AHCCCS Insurance Fraud

Defending against accusations of AHCCCS Insurance Fraud is not a simple matter. However, by understanding these common defenses and working closely with an experienced lawyer, it is possible to challenge the charges effectively.


Whether arguing that there was no intent to commit fraud, or that the evidence is not strong enough, the right legal strategy can have a significant impact on the outcome.


As in all legal matters, every case is unique, and the appropriate defense will depend on the specific facts and circumstances. That's why having the right legal representation, who understands Arizona's laws and white collar crimes, is so vital to a fair and just result.


Below are some common defenses that can be used and examples:

  • Proving Lack of Intent

    It must be proven that the person intentionally committed fraud. If it can be shown that mistakes were made without the intention to deceive, it may lead to dismissal or reduction of charges.
    Example: Accidental errors in billing codes or honest misunderstandings regarding eligibility requirements.

  • Insufficient Evidence

    The prosecution must present enough solid evidence to prove the fraud beyond a reasonable doubt. If the evidence is weak or flawed, it can be challenged.
    Example: Questioning the validity of documents or witness testimony.

  • Duress or Coercion

    If the accused was forced or threatened to commit fraud, they might be able to use this as a defense.
    Example: A healthcare provider is pressured by an employer to submit false claims.

  • Entrapment

    This defense argues that law enforcement officials tricked the accused into committing a crime that they would not have otherwise committed.
    Example: An undercover officer pushing someone to participate in a fraudulent scheme.

  • Statute of Limitations

    There might be a time limit within which the authorities must bring charges. If this time has passed, the charges might be dismissed.
    Example: Arizona has a 3-year (36-month) statute of limitations period to file fraudulent charges against someone.

  • Mistaken Identity

    If the accused is wrongly identified as the person responsible for the fraud.
    Example: Identity theft or a simple case of confusion over similar names.

  • Statutory Exceptions

    Specific laws may have exceptions or special circumstances that can be used as a defense.
    Example: A particular provision in Arizona law allows certain actions in specific cases.

  • Wrongful Arrest or Search

    If evidence was obtained through illegal search or arrest.
    Example: A search warrant was executed improperly or without proper cause.

  • Expert Testimony

    Utilizing expert witnesses to refute evidence or charges.
    Example: A healthcare billing expert testifying that the billing was done correctly.

  • Double Jeopardy

    If the accused was already tried for the same offense.
    Example: Being tried again for the same alleged fraudulent act.

  • Unreliable Witness Testimony

    Challenging the reliability of a witness.
    Example: A witness with a known bias or untrustworthy history.

  • Challenges to Documentation

    If the documents presented as evidence are invalid or tampered with.
    Example: Documents that have been altered or forged.

  • Violation of Constitutional Rights

    If the accused's constitutional rights were violated during the investigation or arrest.
    Example: A violation of the right to a fair trial or the right to counsel.

  • Ineffective Counsel

    If the accused's original lawyer did not provide proper legal representation.
    Example: The previous attorney failed to challenge vital evidence.

  • Suppression of Evidence

    Successfully arguing to suppress certain evidence from being used.
    Example: Evidence obtained through an illegal wiretap.

Why Choose Kolsrud Law Offices to Defend You

Speak Now to Defense Attorney Josh Kolsrud if Accused of AHCCCS Insurance Fraud Charges

AHCCCS insurance fraud is a complex and serious charge that can result in severe legal repercussions, both on a state and federal level. It can affect your financial stability, business licenses, and even leave a permanent mark on your criminal record. That's why it's crucial to get representation from someone who understands the intricacies of the justice system. This is where Josh Kolsrud comes into the picture.


As a former federal prosecutor, Josh has a profound understanding of how both sides of the courtroom operate. He has pivoted his career to criminal defense and is now dedicated to protecting the rights of those accused of various crimes, including AHCCCS insurance fraud.


Dual Perspective: A Winning Advantage


What sets Josh apart is his experience as a former prosecutor. His experience as a federal prosecutor for the state of Arizona isn't just a title; it's a winning advantage for his clients. He knows the strategies prosecutors use to build a case, as well as the weak points that can be exploited for the defense. Understanding both sides of the law equips him with the tools necessary to dismantle the prosecution's arguments effectively.


Jury Trial Experience: An Added Benefit


Furthermore, Josh Kolsrud has overseen more than 3,500 cases and conducted over 100 jury trials. This level of experience means that he knows how to present a case persuasively before a jury, which can be a significant advantage should your case go to trial.


If you're facing charges of AHCCCS fraud in Arizona, the stakes are high. With your financial stability, freedom, and reputation on the line, you can't afford to take risks when it comes to your defense. That's why contacting Josh Kolsrud from Kolsrud Law Offices should be your first step in preparing a robust defense strategy. With his unique perspective, extensive case experience, and proven trial abilities, Josh is well-equipped to help you fight against these serious accusations.


Contact us a call immediately at (480) 999-9444 so we can get started right away at building a solid defense strategy.

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Why Choose Josh Kolsrud

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Josh is an expert in both Arizona and federal criminal law, and is ready to put that expertise to work for you.



As a prosecutor, Josh saw far too many defendants lose their livelihood due to poor representation. Josh will always give every client his complete attention and effort

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