Fake “sober homes” in Phoenix have scammed millions of dollars from taxpayers by falsely promising aid to homeless, often Native American, individuals struggling with substance abuse.
Context: Many of the homeless people in Phoenix are from the Navajo Nation, and have been promised help with substance abuse issues by fake residential facilities and clinics.
* These facilities often fall severely short of their promises, with stories of substandard housing conditions where drinking and drug use are rampant.
* Several Native people have been taken to these homes with no memory of how they got there.
* These homes often recruit people by offering them a few dollars to join or to bring in new clients.
Exploitation and law enforcement: Due to the transient nature of the individuals being exploited, including having mental health and substance abuse issues, collecting evidence for legal action has been challenging.
* Law enforcement, including the FBI, are conducting investigations into these facilities.
* In May 2023, over 100 providers of health services were found to have defrauded the state’s Medicaid program of hundreds of millions of dollars.
* There have been 45 indictments associated with Medicaid fraud, with more than 100 more facilities being suspended.
Impact on Tribal Communities: The fraudulent and exploitative actions of these fake sober homes have led to public health states of emergency in multiple tribal lands, including the Navajo Nation and the Blackfeet Nation.
* Many people who have been taken to these homes have developed more serious addictions or have not survived their experiences.
* Tribal police officers have described significant impacts on their communities, telling stories of residents who returned from these facilities with worsened addictions or did not come back at all.
Addressing the issue: The lack of legitimate facilities for substance abuse treatment on tribal lands has contributed to the success of these scams.
* Legitimate help with addiction treatment is scant in areas like Phoenix.
* A 2021 government survey found that 29% of the Native population was in need of substance use treatment, higher than any other group, but only about 5% received help.
* Navajo Nation President Buu Nygren is working toward the goal of opening facilities in or near the Navajo Nation to help their own people.
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