Arizona Attorney General Mark Brnovich announced that William Timmons, former CEO of Hacienda HealthCare, was sentenced to 3 years supervised probation and financial restitution of $774,000 for his involvement in an elaborate while collar fraud scheme that bilked Arizona taxpayers out of millions of dollars.
Timmons and his long-time CFO and co-conspirator Joseph O’Malley were indicted in August 2020.
Timmons was the CEO of Hacienda from July 1989 to January 2019. From 2013 until June 30, 2018, Timmons and O’Malley intentionally misallocated funds from the Arizona Department of Economic Security’s Division of Developmental Disabilities and the Arizona Health Care Cost Containment System by manipulating costs to make them appear to be allowable expenses in order to avoid repayments of state funds in favor of inflated salaries and bonuses, the AG’s office said in a statement. The contract was with Hacienda’s Intermediate Care Facility only. However, Timmons used the money to pay for a large portion of costs at Hacienda’s other facilities and did not reimburse the state, as required by the contract, resulting in millions of dollars of overpayment by Arizona government. Read more.
