Kevin Lamorris McKenzie, a 49-year-old resident of Tucson, has been sentenced to 14 years in federal prison after pleading guilty to conspiracy to commit wire fraud and embezzlement from an Indian tribal organization. The sentence, handed down by United States District Judge Scott H. Rash on October 16, 2025, will run concurrently with an additional five-year prison term.
McKenzie served as Chief Operating Officer and later as CEO of Apache Behavioral Health Services (ABHS) between 2015 and 2023. During this period, he orchestrated a scheme that defrauded ABHS and the White Mountain Apache Tribe out of millions of dollars. Authorities say McKenzie used two contracts to divert funds for his personal benefit.
According to court documents, under the first contract, ABHS paid more than $35 million to Helping Everyday Youth (HEDY). HEDY then funneled about $16 million in fraudulent proceeds to a shell company controlled by McKenzie based on a secret agreement with him. This arrangement was concealed from ABHS leadership. Investigators found that McKenzie went to significant lengths to hide the financial transactions involving his shell company and attempted to persuade a witness to provide false information during the investigation.
From 2018 through 2023, McKenzie also engaged in another fraudulent operation with co-defendant Corina Martinez using fake referral contracts between ABHS and Evolved Health Care Inc. (EHI), a company managed by Martinez. Although EHI was supposed to refer qualified employees to ABHS for compensation, no such referrals occurred. Through these agreements, ABHS paid approximately $16.5 million to EHI; the money was then split between McKenzie and Martinez. Martinez provided McKenzie with large sums of cash, paid off $800,000 in credit card bills for him, and purchased luxury items including a Rolls Royce Ghost valued at $128,000 and a home worth $928,000 for his family.
As part of his sentence, McKenzie must pay restitution totaling $33,155,701 to ABHS. He is also required to forfeit several assets: real estate properties; vehicles including a 2013 Rolls Royce, a 1966 Ford Galaxie, a 2018 Land Rover Range Rover, a utility trailer from 2018; a 2021 Cadillac Escalade; and $55,000 in U.S. currency. In addition, over $364,447 seized in connection with the case will be applied toward restitution.
The investigation was conducted by the FBI Phoenix Division’s Tucson office. The prosecution was handled by the Financial Crimes and Public Corruption Unit at the U.S. Attorney’s Office for the District of Arizona in Tucson.
"The FBI Phoenix Division’s Tucson office conducted the investigation in this case," according to officials involved in the proceedings.
