A Maricopa County Superior Court judge has ordered L & L Investments to pay more than $34 million in fines and restitution following the company’s felony conviction for defrauding Arizona’s Medicaid program through fraudulent sober living home claims.
L & L Investments has been ordered to pay $30,236,207.52 in restitution to the Arizona Health Care Cost Containment System (AHCCCS), bringing the total financial penalty—including a $4 million fine imposed at sentencing—to $34,236,207.52.
L & L Investments was indicted in 2021 following a joint investigation by the Arizona Attorney General’s Health Care Fraud and Abuse Section, the Office of Inspector General for the U.S. Department of Health and Human Services, and the AHCCCS Office of Inspector General. The investigation uncovered multiple fraudulent billing schemes that drained millions from AHCCCS under the guise of providing behavioral health services.
L & L began its fraud in Nevada before moving to Arizona to continue defrauding taxpayers and exploiting those seeking behavioral health treatment. L & L also facilitated fraud by other bad actors by acting as a “consultant,” handling billing and administrative duties – but in reality, L & L was maximizing profits by franchising its fraud scheme.
In May 2024, a jury found L & L Investments guilty of multiple felony charges, including Conspiracy, Illegal Control of an Enterprise, Theft, and Fraudulent Schemes and Artifices. At sentencing in August 2024, the company was fined $4 million and sentenced to seven years of probation. The court deferred a decision on restitution until this month’s hearing.