Indigenous Survivors Unite in Lawsuit Against Arizona’s Sober Living Fraud

In a striking revelation, it has been almost two years since state officials took action against fraudulent sober living homes that targeted Indigenous people with false offers of shelter and rehabilitation. The exposure of these predatory practices prompted significant concern from community advocates.

In early 2023, Arizona’s Governor Katie Hobbs, Attorney General Kris Mayes, and the Arizona Health Care Cost Containment System (AHCCCS) confirmed the existence of these deceptive establishments following incessant warnings from Indigenous advocates. They detailed how the scheme preyed on vulnerable individuals, resulting in countless cases of abandonment and victimization.

“There was so much harm,” remarked Attorney Dane Wood, whose law firm BrewerWood has filed a class action lawsuit against the state for negligence regarding the handling of this crisis. This lawsuit emphasizes the alleged indifference and misconduct of state agencies that purportedly allowed the crisis to thrive, leading to severe consequences for thousands.

The lawsuit outlines a grim reality: the fraudulent homes exploited Indigenous individuals to profit from their government health benefits, depriving them of the help they desperately needed. Wood noted the state’s awareness of the situation as early as 2019, yet their response was insufficient in preventing escalating harm.

Charging the state with “grossly negligent and indifferent misconduct,” the lawsuit alleges that the actions, or lack thereof, by the State of Arizona and related agencies have led to a multitude of negative outcomes, including mental health crises, addiction, and even death. Wood has gathered numerous testimonies from victims, segmenting them into categories such as wrongful death and injury.

Despite extensive research, no comprehensive data exists regarding the total individuals harmed by these actions. However, estimates suggest that around 7,000 people may have been affected. According to the lawsuit, the state’s inaction transformed a burgeoning crisis into an epidemic.

Advocate Reva Stewart emerged as a vital voice against the fraudulent practices, first bringing attention to these issues during a public hearing in late 2022. Her nonprofit, Turtle Island Women Warriors, continues to assist those impacted by the ongoing fraud. “I want accountability for every single person that was affected,” she asserted, reflecting a sentiment shared by many in the community.

Stewart indicated that while skepticism initially tempered her willingness to engage with legal representatives, the overwhelming tragedy of the situation motivated her to assist with the lawsuit. She emphasized the state’s long-standing knowledge of the issues and the dire need for accountability.

The lawsuit also emphasizes a lack of acknowledgment from the State of Arizona regarding its responsibility for the harm inflicted on Native Americans. “The state has not been accountable to those families,” Wood pointed out, highlighting the absence of restitution for affected individuals.

Responding to these allegations, the state has unveiled initiatives aimed at tackling fraudulent operations in sober living homes. This includes investigations, the establishment of a hotline for affected individuals, and adjustments to policies governing the AHCCCS.

The AHCCCS and Arizona Department of Health Services jointly expressed their commitment to addressing behavioral health fraud and the suffering it has caused within Tribal nations. However, they refrained from commenting on the pending lawsuit since legal proceedings are ongoing.

As part of a broader strategy to mitigate the fallout from the sober living crisis, Governor Hobbs has proposed the Sober Living Home Tribal Response Fund, allocating $7 million to assist tribal responses to the ongoing crisis. “I know that more work must be done,” Hobbs stated, reinforcing her administration’s dedication to addressing these issues effectively.

Further emphasizing the gravity of the situation, Mayes characterized the fraud as a “stunning failure” of government oversight, vowing to hold accountable those responsible for exploiting vulnerable populations. Her office continues to pursue legal actions to deliver justice and restoration to affected Indigenous communities.

In addition to legal repercussions, the Attorney General’s Office has launched a $6 million grant program to support tribal nations and non-profits working towards recovery efforts. This funding aims to aid communities in providing essential services and addressing the physical and mental health ramifications of the fraud.

Despite these advancements, the need for accountability and recognition of the pain endured by community members persists. As the situation develops, advocates like Stewart tirelessly work to ensure that the experiences of Indigenous individuals are not forgotten.