Former CEO of Addiction Recovery Care federally indicted

To locate recovery services in Kentucky, visit https://findhelpnow.org/ky. The National Suicide Prevention Lifeline is 988. The Substance Abuse and Mental Health Services Administration has a 24/7 helpline for people in need of mental health or substance use support: 1-800-662-4357. 

Tim Robinson, former chief executive officer of Addiction Recovery Care, was indicted in federal court on Thursday on wire transmission and “monetary transaction in criminally derived property” in “unlawful activity” charges. 

The indictment, which was filed in the United States District Court in the Eastern District of Kentucky, says Robinson “knowingly, and with intent to defraud, devised and intended to devise a scheme to defraud and obtain money by means of materially false and fraudulent pretenses, representations, and promises, and concealment of material facts.”

The Lantern left a voicemail with an ARC spokeswoman seeking comment and had not heard back at the time of publication. 

The indictment says Robinson acted “in order to unlawfully enrich himself.” 

Robinson “shall forfeit to the United States any and all property, real or personal, which constitutes or is derived from proceeds traceable to the violation.” the indictment states.  

They needed treatment. Kentucky company may have used them to commit fraud.

In January, Angelica Capital Trust sued Addiction Recovery Care, Kentucky’s largest provider of addiction treatment, alleging it committed “massive fraud” in Medicaid and Medicare billing. 

In April, the Lexington Herald Leader and ProPublica reported an investigation into ARC’s transactions and its “alleged billing scheme.” 

According to the Thursday indictment, penalties can include imprisonment, fines of $250,000 and supervision, plus forfeiture and restitution. 

Read the indictment

This story may be updated.