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Indigenous Survivors of Arizona’s Sobering Living Fraud File Lawsuit Against State

In Arizona, the fallout from fraudulent sober living homes targeting Indigenous people continues to unfold nearly two years after the schemes were first exposed. Officials, including Governor Katie Hobbs and Attorney General Kris Mayes, announced in 2023 that deceptive practices had harmed thousands of Indigenous individuals, leading to tragic outcomes such as deaths, abuse, and homelessness.
Attorney Dane Wood’s law firm, BrewerWood, is spearheading a class action lawsuit against the state. Wood alleges that Arizona’s systemic neglect allowed these fraudulent operations to flourish, resulting in profound harm to the Indigenous population. The lawsuit contends that state agencies, including the Arizona Health Care Cost Containment System (AHCCCS) and the Arizona Department of Health Services (ADHS), failed to act despite being aware of the fraudulent activities since as early as summer 2019.
Wood described the lawsuit as a necessary step for accountability, emphasizing the thousands of individuals classified into different subclasses: wrongful death, injury, displacement, and services not rendered. Unverified estimates suggest around 7,000 Indigenous individuals may have been affected, yet the state has not fully disclosed the scope of the damage.
Reva Stewart, an advocate involved in the crisis, presented concerns about the fraud during a public hearing in late 2022. Her organization, Turtle Island Women Warriors, is dedicated to aiding those impacted by the widespread scam. Despite initial skepticism about collaborating with the legal team, Stewart recognized the urgency of the situation, highlighting the loss of life among Indigenous individuals due to these fraudulent homes.
“I want them to be held accountable,” Stewart asserted, referring to the state’s inaction over the years. The lawsuit aims to highlight the broad ramifications of the crisis, encompassing deaths, substance abuse, and an overall increase in vulnerability among those who sought help.
As the legal battle unfolds, Arizona’s government has taken measures to curb the effects of these fraudulent sober living facilities. Initiatives have been launched to investigate and shut down such establishments while establishing a hotline to assist victims. However, critics argue that efforts remain inadequate, especially in addressing the full extent of the crisis and its impact on Indigenous communities.
Governor Hobbs acknowledged the complexity of the issues involved but remained committed to pursuing solutions. She announced the Sober Living Home Tribal Response Fund, allocating $7 million to support tribal responses to the crisis, reinforcing the state’s pledge to remedy the harm inflicted on vulnerable populations.
Attorney General Mayes called the situation a “stunning failure” of government oversight, emphasizing a renewed focus on prosecuting bad actors within the fraudulent systems. Her office has undertaken significant investigations that led to multiple indictments, showcasing a collective effort toward bringing justice to those marginalized by these exploitative practices.
Additionally, a newly launched grant program aims to provide financial support to tribal nations and non-profits working directly to assist those impacted by the scandal. The funds are intended for compensation and remediation efforts, a step towards healing the deep wounds left by this widespread fraud.
As the lawsuit progresses, advocates, state officials, and affected communities hope for a resolution that brings accountability and support for those victimized by the fraudulent actions of purported sober living homes.