PHOENIX, AZ — The Arizona Attorney General’s Office has indicted 20 individuals, including a church pastor, for their involvement in a massive fraud scheme targeting the state’s Medicaid program. The fraud scheme, which spanned less than a year, resulted in more than $60 million in fraudulent claims submitted to the Arizona Health Care Cost Containment System (AHCCCS), a vital program for the state’s Medicaid recipients.
Details of the Fraud Scheme
The indictment details the actions of Desire Rusingizwa and Fabrice Mvuyekure, two men from Arizona, who allegedly led a scheme through their business, Happy House Behavioral Health. Between August 2022 and July 2023, the pair submitted fraudulent claims to AHCCCS, often for services that were never provided. The fraudulent claims included requests for treatment for patients who were deceased, incarcerated, or hospitalized—falsifying their medical needs to siphon taxpayer money.
Legal Implications and Charges
The indictment was filed in April 2024, charging Rusingizwa and Mvuyekure with conspiracy to commit Medicaid fraud and engaging in racketeering activities. The business, Happy House, was suspended in July 2023 by AHCCCS following the discovery of the fraudulent claims.
Additionally, the indictment names Theodore Mucuranyana, the pastor of Hope of Life International Church in Phoenix. The church was linked to the fraud scheme, allegedly laundering money from Happy House. Mucuranyana, along with the church, is accused of facilitating money laundering by accepting large sums from Happy House. The church received more than $5 million in payments from the fraudulently obtained Medicaid funds, some of which were used to buy property, including a 5-acre parcel that was later listed for sale as a potential site for a dream home.
Involvement of Sober Living Homes
The scheme involved sober living homes that were paid to house individuals under the pretense of providing rehabilitation services. However, these homes were not supposed to be funded by AHCCCS, as residents were required to work and pay for their housing. Investigators discovered that the homes were paid using fraudulent Medicaid claims for services that were never rendered, thus violating the law and defrauding the system.
Money Laundering and Lavish Spending
The indictment also uncovered several instances of money laundering, with individuals in the scheme using funds to purchase luxury items. Notable transactions include a $2.8 million check issued to Mvuyekure, and multiple payments to Hope of Life Church, including a $500,000 transfer in June 2023 and a $5 million transfer in July 2023. Authorities also discovered that the church wired $2 million to an unnamed entity in Rwanda in December 2023, further complicating the case with international connections.
Additionally, investigators seized luxury items from Mvuyekure’s and Rusingizwa’s properties, including jewelry, watches, and handbags, highlighting the lavish lifestyle funded by fraudulently obtained Medicaid funds.
Further Investigations and Arrests
The investigation, which involved local, state, and federal agencies, is ongoing. Arizona Attorney General Kris Mayes has emphasized that the charges represent a systemic abuse of the Medicaid system, leading to significant financial harm to taxpayers. Mayes and other officials have pledged to continue pursuing those involved in the fraud scheme and ensure that such crimes are met with accountability.
Authorities noted that over 100 individuals and businesses have been charged in connection with similar fraud cases in the past year. These cases primarily involved services related to drug and alcohol rehabilitation programs that were never provided but falsely billed to the state.
Looking Ahead
As the case progresses, the 20 indicted individuals are facing serious charges that could result in lengthy prison sentences. The involvement of the church and the large sums of money transferred to multiple entities adds a layer of complexity to the case. Legal experts have pointed out that this case represents a growing trend of fraud in the state’s Medicaid program and could lead to even more significant investigations in the future.
Source Attribution:
- Arizona Attorney General’s Office
- Arizona Health Care Cost Containment System (AHCCCS)
- The Arizona Republic
