State of the Movement: Where Things Stand Today
- Justice For Natives
- Sep 11
- 3 min read
State of the Movement: Where Things Stand Today
Published: September 11, 2025
Arizona’s Medicaid sober living fraud did not just steal public dollars. It preyed on Indigenous people who were seeking help, and it left families grieving while communities work to rebuild trust. This update explains where the situation stands and what Justice for Natives and our community have done this year.
The big picture
Investigations by state and federal authorities place the fraud at roughly 2.8 billion dollars. The state reports more than one hundred individuals and entities charged across related cases and about five percent of funds recovered so far. Survivors and families continue to push for restitution and lasting reforms so this cannot happen again.
Legal landscape
Class action against the State of Arizona. A class action was filed on behalf of thousands of Indigenous victims who allege the state knew about large scale fraud and failed to stop it. On July 30, 2025 a Maricopa County Superior Court judge rejected the state’s motion to dismiss, and the case now proceeds.
Criminal enforcement. The Arizona Attorney General has continued new indictments and civil recoveries during 2025. Examples include a May order for more than 34 million dollars in fines and restitution in one case and a separate May announcement of 22 new indictments tied to the scheme. Federal prosecutions connected to AHCCCS treatment fraud are also active.
Policy changes. In April 2025 Governor Katie Hobbs signed SB 1308 which increases oversight of sober living homes. The law adds licensure, inspection, and enforcement tools to prevent the conditions that allowed the fraud to spread.
What Justice for Natives did this year
Lifted survivor voices. We published long form testimonies so the public could hear directly from those affected, including The Story of Cornelia Renee Allison shared by her grandmother Willia Catha and a powerful testimony by advocate Reva Stewart.
Built a living archive. Our Media Library curates coverage, interviews, and on the ground documentation so families, journalists, and lawmakers can see the pattern clearly.
Pressed for accountability. Through press updates, explainer blogs, and community posts we kept the facts front and center and called for restitution and reform that lasts.
Showed up together. We documented rallies, town halls, and mutual aid efforts so survivors are not left alone. Our event gallery highlights volunteers who connect displaced relatives with safe care and real services.
WhaT to watch next
• Court milestones as the class action advances
• Ongoing prosecutions as investigators trace billing and referral networks
• Implementation and enforcement of SB 1308
How to help today
Share your story if you or a loved one were impacted. Use the form on our Media Library page.
Report suspected fraud through AHCCCS reporting channels. The fraud hotlines are 602 417 4045 for provider fraud and 602 417 4193 for member fraud. Outside Arizona use 888 487 6686. An online form is also available.
If a sober living facility has closed and you or a loved one need help with housing or transport, call 2 1 1 and press 7. The hotline is available at all hours.
Support survivors by sharing verified resources, donating to trusted groups, and amplifying survivor videos.
Keep pressure on by sharing this update and asking your representatives how they will secure restitution and safeguards.
Our promise
Justice for Natives will keep documenting, organizing, and pushing until victims are made whole and the system protects our communities.
