L & L Investments convicted and ordered to pay $34 million after 'franchising' sober home fraud
L & L Investments, LLC operated fraudulent sober living homes, first in Nevada and then expanding into Arizona, and submitted false billing claims to AHCCCS, Arizona's Medicaid program. The company later acted as a paid consultant handling billing and administrative functions for other operators, which Arizona Attorney General Kris Mayes described as effectively "franchising" the fraud to other bad actors. Following a 2021 indictment brought jointly by the Arizona Attorney General's Health Care Fraud and Abuse Section, HHS-OIG and the AHCCCS Inspector General, a jury convicted the company in May 2024 of conspiracy, illegal control of an enterprise, theft, and fraudulent schemes and artifices. It was sentenced in August 2024 to seven years of probation, and a restitution order of $30,236,207.52 plus a $4 million fine was entered in May 2025.
- Year
- 2025
- Where
- United States
- Outcome
- Sentenced
- Reported loss
- $30.2 million
- Victims
- Not stated in the sources
- Schemes
- Sober living home and patient brokering fraud
- Last reviewed
- 2026-09-23
The facts, as recorded
- L & L Investments, LLC began operating fraudulent sober living homes in Nevada before expanding its operations into Arizona.
- The company submitted false billing claims to AHCCCS for services at the sober living homes it operated.
- L & L later acted as a paid consultant for other sober-home and clinic operators, handling their billing and administrative functions in exchange for a cut of the proceeds, what Attorney General Kris Mayes described as 'franchising' the fraud.
- A joint investigation by the Arizona Attorney General's Health Care Fraud and Abuse Section, the HHS Office of Inspector General and the AHCCCS Inspector General led to an indictment in 2021.
- A jury convicted the company in May 2024 of conspiracy, illegal control of an enterprise, theft, and fraudulent schemes and artifices.
- The company was sentenced in August 2024 to seven years of probation.
- A restitution order of $30,236,207.52 was entered on 12 May 2025, alongside a $4 million fine, a combined $34,236,207.52.
- Attorney General Kris Mayes: "This wasn't just theft from the state; it was exploitation of vulnerable Arizonans seeking help in recovery."
Why this case matters
Most cases in this scandal involve a single operator running a single clinic or home. This one shows how the fraud scaled: once L & L’s own sober-home-and-billing model was established in Nevada and Arizona, the company began selling that same playbook to other operators as a paid consulting service, turning one fraudulent business into a template for others.
A business, not an individual, as the defendant
Because L & L Investments, LLC itself, not only an individual owner, was charged, convicted and sentenced, this case shows how Arizona prosecutors have gone after the corporate entities running these schemes directly, with a $34 million combined restitution-and-fine order landing on the company.
The caveat
L & L Investments was convicted by a jury and sentenced by an Arizona court; the facts above come from the Arizona Attorney General’s own published account of the conviction, sentence and restitution order, not from unproven allegations.
Sources
- Attorney General Mayes Secures Over $34 Million in Fines and Restitution from Company Convicted of Defrauding AHCCCS Behavioral Health Program. Arizona Attorney General's Office. Accessed 2026-09-23. Supports: L & L Investments' Nevada-to-Arizona expansion, the fraudulent sober living homes, the consulting 'franchising' role for other operators, the 2021 indictment and investigating agencies, the May 2024 jury conviction and charges, the August 2024 probation sentence, the $30,236,207.52 restitution and $4 million fine, and the Attorney General's quote.