An Arizona judge has ordered Las Vegas-based L&L Investments to pay over $34 million for its role in a massive Medicaid fraud scheme involving fake sober living homes.
Key Takeaways for Real Estate Investors:
- $34M Judgment: L&L Investments must pay $4M in fines and $30.3M in restitution to Arizona’s Medicaid program (AHCCCS).
- Sober Living Scam: The company submitted fake bills for behavioral health treatments never provided.
- Impact on Trust: The scam primarily targeted Native Americans and contributed to a $2.5B fraud, the largest in Arizona’s history.
- Regulatory Implications: Investors should be aware of rising compliance scrutiny around housing programs, especially those receiving public funds.
- Property Management Insight: As oversight increases, working with reputable, professional property managers is more important than ever to mitigate legal and reputational risk.