Multiple Arizona residents are among the more than 300 people charged in a nationwide “takedown” of health care schemes, including one accused of being responsible for billing the state for 22% of all AHCCCS “sober living” fraud.
Farukh Jara Ali is accused of submitting about $650 million in “false and fraudulent claims” to the Arizona Health Care Cost Containment System and personally receiving $24.5 million as part of the alleged fraud.
Ali is the owner of a company called ProMD Solutions, which 12News has previously covered in connection with the AHCCCS “sober living” fraud scandal.
ProMD Solutions is listed as the statutory agent for multiple businesses accused of fraud.
In 2023, a man identifying himself as Mark Stanley, a Vice President with the company, told 12News via Zoom that ProMD Solutions was a billing company that also provided turnkey solutions for behavioral health businesses. He denied any billing fraud on ProMD’s part.
ProMD Solutions’ website lists an address in Irvine, CA. But a search of the address reveals it to be a strip mall with a third-party mailbox store. In reality, prosecutors say Ali was running the business from Pakistan.
In court documents, prosecutors state that Ali had contracted with 38 purported healthcare providers to bill the state for $650 million, of which AHCCCS paid $564 million.
According to the indictment, other behavioral healthcare businesses began a scheme to offer bribes and kickbacks to sober living homes, allegedly offering higher amounts for patients who could use the American Indian Health Plan.
Native Americans were widely targeted by the sober living scheme. In many cases, they were promised drug and alcohol rehab that they never received.
The bribes were allegedly in exchange for sending the sober living residents to these behavioral health providers. Prosecutors allege Ali and the business owners conspired to falsify treatment notes to justify billing for services that were never rendered.
According to the indictment, ProMD Solutions was the company responsible for doing the actual billing, with Ali taking 5% off the top. Prosecutors say he made just under $25 million. Prosecutors believe he bought a $3 million golf course home in Dubai using at least some of that money.
Hellbound and Down 