Over 20 charged in alleged sober home fraud in Arizona

(NBC, KYMA/KECY) - At least twenty people, a health care business and a church have been charged in a sober living scheme in Arizona.

The sober-living home scandal has cost Arizona taxpayers $2 billion dollars to date. The latest indictment adds a new twist: Some of the money allegedly was diverted to Africa.

According to a 26-page indictment, Happy House Behavioral Health was paid over $60 million by the Arizona Health Care Cost Containment System (AHCCCS).

Happy House is charged with billing access for clients who were deceased, incarcerated or hospitalized.

A northwest Phoenix church who bills itself as a haven for East African migrants is also caught up in the scandal.

Money laundering charges allege Happy House paid $5 million to Hope of life International Church.

According to the indictment, the church later wired $2 million to an entity in Rwanda.

Happy House's offices are in a leased building on the church grounds. The church and its pastor face a combined 10 felony counts of money laundering.

Attorney John Kolsrud represents the pastor who says, "Just because he rented his property out, he's now being indicted on four different counts of fraud and abuse when he actually had nothing to do with this case."

Attorney Ulises Ferragut represents two service providers facing racketeering charges who adds, "It seems to be a community of folks that were involved. from what I've seen, a lot of them didn't even realize that what they were doing was a crime."

To learn more about the story, click here.