Criminal charges have been filed against seven individuals in Arizona, as part of the Department of Justice's 2025 National Health Care Fraud Takedown. The defendants are accused of schemes to receive health care kickbacks and defraud Medicare and Medicaid, including the Arizona Health Care Cost Containment System (AHCCCS), involving fraudulent claims amounting to approximately $1.65 billion.
United States Attorney Timothy Courchaine emphasized the impact of health care fraud, stating that it "doesn’t just steal money from taxpayers, it also degrades trust in the system Americans rely on." Attorney General Pamela Bondi echoed this sentiment, warning that "this administration will not tolerate criminals who line their pockets with taxpayer dollars."
The takedown is a nationwide effort resulting in criminal charges against 324 defendants for alleged involvement in health care fraud and illegal drug diversion schemes. These activities reportedly resulted in over $14.6 billion in intended losses and involved more than 15 million illegally diverted controlled substances. Over $245 million in cash and assets have been seized.
In Arizona, Farrukh Jarar Ali is charged with conspiracy to commit health care fraud and wire fraud among other offenses related to an alleged $650 million scheme through ProMD Solutions. Cle’Esther Davenport faces charges related to receiving illegal kickbacks through her company Davenport House LLC. Ira Denny is accused of billing Medicare for medically unnecessary amniotic allografts obtained through kickbacks. Tyler Kontos, Joel “Max” Kupetz, Jorge Kinds face multiple charges related to a $1 billion fraud scheme involving amniotic wound allografts targeting elderly patients.
Gina Palacios is charged with conspiracy to commit health care fraud by billing Medicare for unnecessary amniotic allografts procured through bribes.
FBI Phoenix Special Agent Heith Janke stated that the investigation into such fraudulent activities is taken seriously as they undermine the integrity of the healthcare system.
This extensive enforcement action involves collaboration between various federal entities including the FBI, Department of Health and Human Services Office of Inspector General, Department of Defense - Defense Criminal Investigative Service, and others across numerous states.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
