Overview
- Timmy G. Robinson Jr., who resigned as CEO of Addiction Recovery Care, was indicted on June 4 by a federal grand jury on one count of wire fraud and two counts of money laundering and faces decades in prison if convicted.
- Prosecutors allege Robinson sold the same two Employee Retention Credits to different buyers, took wire payments in July and November 2025, signed sale agreements on Nov. 12, 2025, and then received the IRS payments on Dec. 2, 2025.
- The indictment says Robinson directed ARC to keep and spend the IRS ERC refunds on operational costs and debt instead of paying purchasers, and it identifies November 2025 wire transfers that prosecutors allege were laundering proceeds.
- The criminal case adds to separate legal pressure on ARC, which has faced an FBI investigation into alleged Medicaid fraud since July 2024 and is defending civil suits from buyers and creditors while saying its facilities remain open.
- The filing includes a forfeiture allegation, was signed by U.S. attorneys in the Eastern District of Kentucky, and could affect ARC’s creditors, pending civil litigation, and the company’s ability to operate as the cases proceed.