The attorneys general of Arizona and Georgia have announced judgments in the continuing fight against Medicaid fraud.
On May 12, an Arizona judge ordered L & L Investments, LLC, to pay a total of over $34 million — $30.2 million in restitution and a $4 million fine — following a felony conviction for fraudulent sober living home claims to the state’s Medicaid program,
A joint investigation by Arizona and federal investigators uncovered fraudulent healthcare services billing schemes that siphoned millions from the Arizona Health Care Cost Containment System, according to a news release from Arizona Attorney General Kris Mayes.
“This wasn’t just theft from the state — it was exploitation of vulnerable Arizonans who were seeking help in their recovery,” Mayes said in the release. “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.”
L & L first conducted fraudulent operations in Nevada and then moved to Arizona, where it targeted individuals seeking behavioral health treatment, Mayes said. L & L also abetted fraud by others by serving as a “consultant” performing billing and administrative duties — in reality, “franchising” its fraud scheme, authorities said.
L & L Investments was found guilty by a jury in May 2024 of felony charges including conspiracy, illegal control of an enterprise, theft, and fraudulent schemes and artifices. The company was fined $4 million and sentenced to seven years of probation in August 2024.
However, the court deferred its decision on restitution until this month.
In Georgia, Teresa Renee Owens, 60, of Brookhaven, was convicted of Medicaid fraud totaling $305,685, according to a news release from state Attorney General Chris Carr.
Owens’ company RJ Shepherd II, Inc., which operated as Better Home Healthcare of Georgia and offered behavioral health therapy services, repeatedly submitted fraudulent claims to the state Medicaid program and created false patient records to support the claims. Fraudulently derived funds — $305,685.75 — were deposited Owens’ personal bank account.
Owens pleaded guilty to one count of Medicaid fraud, one count of false writings, and one count of identity fraud on March 31. She was sentenced to one year in prison and nine years of probation. She was ordered to pay $305,685.75 to the Georgia Medicaid program at a restitution hearing on April 28.
“Medicaid fraud isn’t a victimless crime — it’s theft of taxpayer dollars and it undermines a system meant to care for our most vulnerable Georgians,” Carr said in a news release. “As this case shows, we will not hesitate to hold accountable those who use their positions to exploit our Medicaid program. Rest assured, if you’re a provider attempting to game the system, you will be identified, prosecuted, and ordered to pay back every dollar you stole.”
