Sober Living Plaintiffs’ Attorneys Allege Bribery Inside Arizona Agencies, Challenge Mayes’ Response

Attorneys representing plaintiffs in Arizona’s sober-living lawsuit alleged that employees of two state agencies accepted gifts and payments to help fraudulent providers obtain approvals and Medicaid payments. They also challenged a separate $500,000 grant awarded through Attorney General Kris Mayes’ office and questioned whether her enforcement efforts have adequately addressed harm to Native American victims.

At a Phoenix press conference carried by FOX 10, attorneys John Brewer and Dane Wood described information they said came from informants, including a sworn declaration and communications involving employees of the Arizona Health Care Cost Containment System and Arizona Department of Health Services.

Wood alleged that providers cultivated relationships with employees responsible for licensing, compliance, enrollment, and payments. He described gifts that allegedly escalated from gift baskets to designer handbags, travel accommodations, and cash.

The attorneys represent plaintiffs in Honyumptewa, et al. v. State of Arizona, a lawsuit concerning allegations that state failures allowed vulnerable people seeking addiction treatment to be exploited.

Wood said some of the firm’s sources had themselves participated in fraud. He argued that the information warranted scrutiny of people working within the agencies responsible for overseeing providers.

The allegations presented at the press conference remain disputed and have not been established as court findings in the materials reviewed for this report.

In a joint statement reported by KJZZ, AHCCCS and ADHS said they have a zero-tolerance policy for employee misconduct and refer allegations involving fraudulent providers to the attorney general’s Medicaid Fraud Control Unit and other law enforcement agencies as appropriate.

Mayes’ communications director, Richie Taylor, defended the office’s enforcement work in a statement included with FOX 10’s coverage.

“The Attorney General’s Office brings charges when and where the evidence supports those charges and where there is a reasonable likelihood of conviction,” Taylor said.

“Attorney General Mayes will not hesitate to follow the facts where they lead and will continue to investigate and prosecute those who break our laws.”

Brewer criticized what he described as an emphasis on financial prosecutions without sufficient accountability for alleged abuse, drug-related injuries and other harm suffered by people in fraudulent treatment programs.

He cited the experience of lead plaintiff Randi Lynn Honyumptewa, alleging that she suffered a severe brain injury after a staff member supplied fentanyl. He also referenced complaints submitted by Native American advocate Reba Stewart as information he said should have prompted further investigation.

The attorneys said they had raised allegations with the State’s outside counsel. During questioning, they said a previous pleading described categories of alleged wrongdoing without identifying every individual or providing all the specifics discussed at the press conference.

A separate portion of the presentation focused on a $500,000 grant awarded to Native Action Program through Mayes’ office.

Brewer alleged that an unnamed informant supplied money, vehicles, and assistance to an operation associated with Dwayne McIntosh that submitted fraudulent AHCCCS billings. He contended that the operation was connected to the nonprofit receiving the grant.

McIntosh disputed the attorneys’ allegations, telling KJZZ their claims were untrue.

The attorney general’s May 1, 2025, announcement confirms Native Action Program received a $500,000 award through the Sober Living Home Support Program. The office described the broader initiative as a $6 million program funded through Arizona’s Anti-Racketeering Revolving Fund to assist people affected by sober-living fraud.

Taylor said the nonprofit was complying with its agreement and emphasized that an award did not mean the full amount had already been spent.

“Native Action Program is fully compliant with the grant they were awarded by the Attorney General’s Office,” he said.

“The grant is operated on a reimbursement basis, meaning non-profits and Tribal governments awarded these funds spend money on approved purposes and then apply for reimbursement for those expenses.”

Taylor said Native Action Program had spent approximately $335,000 during its two-year grant cycle. He identified activities including 12-step programs, work and life-skills training, sobriety support groups and financial literacy.

During questioning, one of the attorneys acknowledged that the suggestion the money had been pocketed was a “wild guess.”

The attorneys also disputed the attorney general’s reported recovery of approximately $140 million. Brewer pointed to records he said showed roughly $55 million in unpaid financial obligations in two matters, arguing that those amounts undermined the total.

Taylor disputed that comparison, saying the reported cash seizures excluded fines and court-ordered restitution.

“The Attorney General’s Office has indeed seized approximately $140 million in cash as part of the ongoing investigation and prosecution of these matters,” he said. “This figure is solely regarding seizures in these cases and does not include any fines or other court-ordered restitution amounts.”

Republican attorney general candidate Warren Petersen promoted the press conference on X, accusing Mayes of incompetence and corruption and highlighting the anticipated allegations concerning the grant.

A law firm is doing a press conference to expose Kris Mayes incompetence and corruption. Will be interesting to see who the fraudster is that she awarded half a million dollars to.

End the corruption on Nov. 3rd. pic.twitter.com/lDT4ezVS7k

— Warren Petersen (@votewarren) October 3, 2026

The attorneys denied being hired by a political opponent of Mayes when asked about the timing of their presentation. They said their work began in May 2023 and that clients were pressing them for accountability.

Taylor urged the attorneys to submit evidence to investigators.

“If Brewer Wood or their anonymous informants have evidence of crime occurring, they should report it to law enforcement immediately rather than grandstand at a press conference the week early voting starts,” he said.