Arizona Attorney General Kris Mayes announced a sweeping enforcement action Tuesday that resulted in 42 indictments across 10 separate health care fraud cases in five counties, part of the 2026 National Health Care Fraud Takedown. The charges allege a broad pattern of criminal conduct targeting the state’s Medicaid system and vulnerable populations, with accusations ranging from large-scale billing fraud to unlicensed medical practice and drug diversion. Mayes described the action as among the most significant coordinated law enforcement efforts the state has seen, and emphasized the office’s commitment to pursuing those accused of exploiting the healthcare system.
Loading post…
A state official speaks at a podium with U.S. and Arizona flags during a press conference announcing dozens of indictments in the historic health care fraud takedown.
Officials said the indictments encompass a mix of alleged criminal activity, including multimillion-dollar Medicaid billing fraud, the unlawful administration of drugs, operation of unlicensed medical practices, identity theft, and even charges tied to patient deaths. Several of the cases stem from investigations into a pandemic-era network of sober living providers and associated billing schemes that federal and state authorities contend cost taxpayers nearly $3 billion. One of the most highly publicized individual prosecutions highlighted during the announcement involves Thomas Heard, who was recently sentenced to two years in prison for a scheme that prosecutors say exploited Native American clients and generated more than $30 million in benefits. Authorities are seeking nearly $32 million in restitution in that matter, which would include about $8 million from liquidation of Heard’s mansion and its contents. Newly released footage from a law enforcement raid on that home was shown as part of the recent updates.
A number of the indictments detailed by the Attorney General’s Office came from the Medicaid Fraud Control Unit, which highlighted cases involving alleged fatal neglect and other serious harms. One indictment charges seven employees of the Meadows Catalina care home in connection with the death of a vulnerable adult identified in court filings as Holly Dale Given. Prosecutors allege a pattern of systemic neglect and repeated, unaddressed falls that culminated in Given’s death; one employee, Paula Fox, faces a manslaughter charge while six others are charged with vulnerable adult abuse. In another case, a 73-year-old woman accused of practicing midwifery without a license in Snowflake has been charged with fraudulent schemes, identity theft and negligent homicide after the state says her illegal practice, which allegedly ran from 2020 to 2025, resulted in the in-utero death of an unborn child in February 2025.
Investigators also exposed alleged large-scale fraud and racketeering tied to clinical operations. Authorities say Irfan Fazil, 54, of Yuma, operated a racketeering enterprise through his clinic that fraudulently billed the Arizona Health Care Cost Containment System (AHCCCS) for millions of dollars between July 2025 and May 2026. Fazil and his clinic face charges that include fraud, theft, money laundering and the unlawful administration of dangerous drugs. Prosecutors presented the racketeering allegation as emblematic of the types of schemes that drain public health funds and, in some cases, jeopardize patient safety.
Other prosecutions focus on clinics and individuals accused of creating sham referral networks and illegal prescription and treatment practices. Authorities announced felony charges against 18 people and the Newstart Integrated Clinic itself over what they described as a kickback scheme: defendants allegedly paid individuals to refer AHCCCS beneficiaries to the clinic, resulting in more than $1 million in improper billings. In Kingman, a provider operating under the name Slimming Grace is accused, along with a nurse practitioner and six co-defendants, of placing prescriptions in patients’ names without their consent, administering drugs without valid clinical consultations and misrepresenting professional credentials. Those charges include allegations of unlawful administration of drugs and fraud.
The indictment list also includes multiple cases involving unlicensed cosmetic procedures and identity-based fraud. Two women are charged with performing cosmetic injections without proper licensure — one in Phoenix who allegedly administered Botox and dermal fillers using products that may not have been approved, and another in Kingman who is accused of providing unlicensed lip filler services through a business called The Pout Company. Separately, authorities say a Nogales man assumed another person’s identity to perform unlicensed medical procedures and is charged with identity theft, endangerment and unlawful possession of prescription drugs for sale. A Peoria pharmacist, Michael Maurice Jadda, 34, is accused of forging oxycodone prescriptions and diverting the narcotics for personal use and street sale.
Investigators released documentation and examples of the alleged fraudulent medical records and billing that underpinned several indictments, including instances where providers billed for services tied to diagnoses that prosecutors say were fabricated. In one highlighted set of court documents, bills claimed treatment for “alcohol dependence, uncomplicated” for extremely young children and included charges for deceased patients, allegations now central to ongoing prosecutions in which restitution and asset forfeiture are being pursued.
Mayes read prepared remarks at a news conference announcing the charges and said the indictments demonstrate the office’s sustained efforts to hold accountable those who prey on the health care system. "These 42 indictments … show how tirelessly my office works to hold bad actors accountable," she said. "We will not stop until those who exploit our health care system are brought to justice." The Attorney General’s Office said the charges will be pursued through the state court system and involve coordination with federal authorities as part of the national takedown. Court documents and charging instruments filed in the various cases provide the detailed allegations and list the individual counts facing each defendant; state officials said investigations remain active and additional information will be released as cases proceed through the courts.
A FOX 10 graphic highlights the phrase "Alcohol Dependence, Uncomplicated" from medical records, illustrating alleged falsified diagnoses tied to the health care fraud investigation.
The statewide sweep, officials said, touches a range of locations and providers and reflects enforcement work by the Medicaid Fraud Control Unit alongside broader investigations into sober living and treatment-provider billing. The indictments allege wrongdoing that prosecutors contend both defrauded taxpayers and, in multiple cases, harmed or put at risk patients. The office indicated that restitution, asset forfeiture and other remedial actions will be sought where appropriate as the matters advance through criminal proceedings.
KJZZ reports that these 42 indictments bring Arizona's total in related Medicaid fraud cases to 280 defendants, including multiple actors who exploited a loophole in the American Indian Health Plan tied to the sober living schemes. @AZAGMayes posted the official announcement on X with a link to press conference video as investigations continue.
The Justice Department said the 2026 National Health Care Fraud Takedown charged 455 defendants across 56 federal districts and 45 U.S. states and territories, alleging more than $6.5 billion in false claims; the operation involved 50 state Medicaid Fraud Control Units, the seizure of over $182 million in cash, luxury vehicles, jewelry and other assets, and HHS‑OIG actions seeking more than $10 billion in recoveries to the Medicare Trust Fund.
Local court records and reporting show Dr. Irfan Fazil was arrested in Yuma on June 3, 2026 after investigators executed a search at Bio Family Clinic; he is being held on a $50 million bond and prosecutors’ notes allege large sums were transferred to accounts in Dubai and Pakistan and that some associates have ties to Mexican drug cartels.
The DOJ said the takedown included a record number of Medicaid-focused charges nationally — 295 defendants and more than $518 million in alleged false claims submitted to Medicaid — underscoring the operation’s emphasis on schemes that targeted state Medicaid programs.