Ex-Special Needs Caregiver Charged in Major PPP Fraud Scandal

A grand jury indicted Bridget O’Brien in August of 2023 on 17 counts of fraud and theft, though 12News just learned of the charges this week.

PHOENIX — Bridget O’Brien, a prominent Phoenix business owner, faces severe allegations of misusing nearly $3 million in COVID small business relief funds.

This August, a grand jury held O’Brien accountable with 17 counts of fraud and theft. These charges were only made public this week. O’Brien has entered a plea of not guilty and is scheduled for a status conference next month.

The indictment is the only SBA emergency loan fraud case brought by Arizona Attorney General Kris Mayes’ office. Typically, such cases are under federal jurisdiction.

O’Brien has been under state scrutiny since 2019, when Medicaid payments to her clinic, Head to Toe Therapy, were cut off. Former contractors have cooperated with state investigators regarding alleged fraud within her companies.

A spokesperson for Mayes declined to provide further details about the ongoing investigation.

The indictment alleges that O’Brien siphoned $2.9 million through nine companies in her name. This is against the backdrop of $64 billion in estimated fraud from the PPP program.

Whistleblower claims in 2020 indicated that O’Brien’s clinics, which were primarily operated by independent contractors, may have falsely qualified for SBA loans. During the same period, she purchased a $2 million home near Biltmore while owing back pay to therapists and social workers.

O’Brien’s legal troubles have been mounting since 2018. Early allegations ranged from Medicaid fraud to nonpayment of staff. In a notorious incident in 2021, O’Brien was caught on camera stealing a dog from a Biltmore yard, leading to a guilty plea and fine for theft.

Additional accusations suggest O’Brien falsified a cancer diagnosis to evade financial duties. Despite claims from former coworkers and therapists, a bankruptcy judge ruled in her favor, with Tom Horne, a past Arizona Attorney General and current state superintendent, representing her.

One of the companies involved in the loan fraud, KIIDS A Therapy, received $343,000 and is still listed as an approved vendor for the Arizona Department of Education. Horne, a longtime acquaintance of O’Brien, stated that she is entitled to her day in court and declined to disqualify her company from the vendor list.

In 2020, O’Brien’s attorney maintained that she met the SBA guidelines when obtaining the emergency loans.