Twenty-two defendants were indicted this week in Phoenix, Arizona, on felony charges, including money laundering, theft, conspiracy, fraud, and forgery, in a $60 million scheme that allegedly diverted medicaid funds meant for sober living programs to a church for East African migrants.
The 51-count indictment announced by the state’s Democratic Attorney General on Tuesday alleges that Happy House Behavioral Health billed the state over $60 million “for services not rendered and/or partially rendered, including but not limited to, billing for deceased clients, billing for incarcerated clients, billing for hospitalized clients, billing under incorrect billing codes, and billing excessively.”
Additionally, Happy Health is accused of paying over $5 million to Hope of Life International Church, which later wired over $2 million to “an entity in Rwanda.”
It appears that all of the defendants are African migrants or refugees.
The Defendants pleaded not guilty in the Maricopa County Superior Court on Tuesday.
This comes as Democrats rally against Republicans in Congress for so-called cuts to Medicaid in the One Big Beautiful Bill Act. In reality, the bill seeks to impose additional screening requirements on Medicaid providers, ensure accurate payments, and prevent aliens from receiving Medicaid benefits, which would seemingly prevent fraudulent schemes like this.
Ironically, Attorney General Kris Mayes has dishonestly pushed the narrative that Republicans are trying to cut Medicaid to harm seniors and rural Americans.
Medicaid cuts = rural hospitals closing. Medicaid cuts = nursing homes closing.
— AZ Attorney General Kris Mayes (@AZAGMayes) March 5, 2025
Per 12 News:
The new indictment lays out alleged criminal activity that occurred between August 2022 and January 2024:
- Phoenix-based Happy House Behavioral Health billed the state for $60 million worth of health care services “for services not rendered and/or partially rendered.”
- Among the 51 felony counts it faces, Happy House is charged with billing the state for clients who were deceased, incarcerated or hospitalized.
- Happy House’s owners, Desire Rusingizwa and Fabrice Mvuyekure, received checks from the business for $2.9 million apiece. They could not be reached for comment.
- In exchange for referring clients to Happy House for services, sober-living homes or other treatment centers would be reimbursed with state Medicaid dollars.
- The church and its pastor, Theodore Mucuranyana, were indicted on a combined 10 felony counts of money laundering.
- Happy House paid $5 million to Hope of Life International Church, and the church later wired $2 million to an unnamed “entity” in Rwanda.
- Happy House leased a building on the church grounds from Hope of Life.
The pastor’s attorney, John Kolsrud, told 12News after the court hearing that the AG’s office was trying to “deflect blame” for its failure to police the Medicaid system.
Attorney Ulises Ferragut represents two service providers charged with racketeering.
“It seems to be a community of folks that were involved,” he said in an interview outside the courthouse. “From what I’ve seen, a lot of them didn’t even realize that what they were doing was a crime.”
The post 22 Charged in Arizona Medicaid Fraud Scheme Allegedly Funneling Millions of Dollars to African Migrant Church in Phoenix and to Rwanda appeared first on The Gateway Pundit.