Attorney General Kris Mayes announced that Maricopa County Superior Court has ordered L & L Investments, LLC to pay over $34 million in fines and restitution. This follows the company's felony conviction for defrauding Arizona's Medicaid program through fraudulent claims related to sober living homes.
"This wasn't just theft from the state—it was exploitation of vulnerable Arizonans who were seeking help in their recovery," said Attorney General Mayes. "This fraud severely undermined trust in behavioral health services and harmed countless lives. My office will continue to aggressively prosecute fraudsters and fight to recover funds stolen from programs meant to support people in crisis."
On May 12, 2025, a judge ordered L & L Investments to pay $30,236,207.52 in restitution to the Arizona Health Care Cost Containment System (AHCCCS). This brings the total financial penalty—including a $4 million fine imposed at sentencing—to $34,236,207.52.
L & L Investments was indicted in 2021 after 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 revealed multiple fraudulent billing schemes that drained millions from AHCCCS under false pretenses of providing behavioral health services.
The company began its fraudulent activities in Nevada before moving operations to Arizona, continuing its scheme against taxpayers and those seeking behavioral health treatment. Additionally, L & L facilitated fraud by other entities by acting as a "consultant," handling billing and administrative duties while maximizing profits through franchising its fraud scheme.
In May 2024, a jury found L & L Investments guilty of several felony charges including Conspiracy, Illegal Control of an Enterprise, Theft, and Fraudulent Schemes and Artifices. At sentencing in August 2024, the company received a $4 million fine and seven years of probation. The court deferred deciding on restitution until this month's hearing.
The restitution order is available here.