CRIME
CEO Charged In Scheme To Embezzle Millions From Tribal Healthcare Provider
U.S. Department of Veterans Affairs
An Arizona CEO and an accomplice are facing 40 federal charges connected to a scheme to embezzle millions of dollars from a White Mountain Apache Tribe healthcare provider.
A federal grand jury last week returned a 40-count indictment against Kevin McKenzie, 47, and Corina Martinez, 41, of Tucson, the U.S. Attorney’s Office for the District of Arizona announced Thursday.
They were charged with conspiracy to embezzle from an Indian Tribal Organization; embezzlement; theft concerning programs receiving federal funds; wire fraud; conspiracy to commit wire fraud; conspiracy to commit money laundering; and engaging in monetary transactions in property derived from specified unlawful activity. McKenzie was also charged with attempted tampering with a witness.
According to the indictment, from 2015 through 2023, McKenzie engaged in a scheme to defraud millions of dollars from Apache Behavioral Health Services (ABHS), first in his position as chief operating officer then as CEO. The ABHS, organized under the laws of the White Mountain Apache Tribe, provides behavioral health services to tribe members.
McKenzie allegedly used two contracts as a front to embezzle ABHS money. Under the first contract, ABHS paid over $32 million to Helping Everyday Youth (HEDY). HEDY then funneled more than $14 million in fraudulent proceeds to a shell company McKenzie owned. McKenzie allegedly made significant efforts to hide the theft through money laundering, and tried to get a witness to lie to investigators.
While CEO, McKenzie allegedly used a fraudulent referral contract with Martinez through her company Evolved, LLC, to embezzle additional funds from ABHS. McKenzie directed ABHS to pay $15 million to a second Martinez company, Evolved Healthcare Inc., and the pair allegedly split the illegal proceeds of their fraud. EHI and Evolved LLC did not perform any services for ABHS, according to prosecutors.
Using the proceeds of the fraud, Martinez allegedly paid at least $800,000 of McKenzie’s personal credit card bills, purchased a $128,000 Rolls Royce Ghost and a $952,000 home for McKenzies family, among other luxury items.
TMX contributed to this article.
