by Jonathan Eberle | Nov 11, 2025 | News
By Jonathan Eberle |
State lawmakers will hold a third public oversight hearing in the coming days to examine ongoing concerns surrounding the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid program, as questions persist over fraud, service disruptions, and access to behavioral health care.
Sen. Carine Werner (R-LD4), who chairs the Senate Health & Human Services Committee, announced that the hearing will take place Wednesday, Nov. 12, at 1 p.m. in Senate Hearing Room 1. The session will be open to the public and media, with a livestream expected to be posted on the legislature’s website.
The upcoming hearing comes amid continued fallout from large-scale Medicaid fraud schemes that exploited system vulnerabilities and led to significant billing losses. According to lawmakers, the issue has contributed to widespread service interruptions and difficulties for some patients and behavioral health providers trying to access or deliver care.
Werner has requested testimony from AHCCCS Director Ginny Rountree and senior members of the agency’s leadership team. Legislators are expected to press the agency for updates on enforcement efforts, provider reinstatement processes, and long-term plans to stabilize services. Officials from the Arizona Department of Health Services (ADHS) have also been asked to appear to address questions related to licensing and oversight of behavioral health providers.
“Arizona families and providers deserve honesty, transparency, and meaningful corrective action,” Werner said in an announcement. “The public deserves to know what happened, what is being done now, and how we ensure this never happens again.”
Lawmakers also plan to review AHCCCS’ response to information and document requests issued by the committee. The findings could influence whether legislators pursue additional policy or statutory changes aimed at strengthening oversight and preventing further misuse of public funds. The hearing marks the latest step in a months-long legislative inquiry as state officials continue efforts to restore stability and public trust in Arizona’s Medicaid system.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Nov 1, 2025 | News
By Jonathan Eberle |
Senator Carine Werner (R-LD4), Chair of the Arizona Senate Health and Human Services Committee, announced that the committee will convene its third special oversight hearing on the Arizona Health Care Cost Containment System (AHCCCS) on November 12 at 1 p.m.in Senate Hearing Room 1.
The hearing continues the committee’s months-long probe into what lawmakers describe as systemic failures in the state’s Medicaid program. The focus will be on AHCCCS’s ongoing response to widespread Medicaid fraud and the long-term fallout affecting behavioral health providers and Arizona families.
Senator Werner has invited newly appointed AHCCCS Director Ginny Roundtree and members of the agency’s executive leadership to testify. The committee has also requested the attendance of Arizona Department of Health Services (ADHS) leaders to address allegations that providers who have publicly criticized the agencies faced retaliation.
“Arizonans deserve answers — not excuses,” Werner said. “Governor Hobbs and AHCCCS continue to hide behind lawsuits and misleading data, instead of owning up to the damage caused by its failed oversight. We will not allow bureaucratic stonewalling to stand in the way of accountability.”
The committee’s investigation began earlier this year following revelations of billions in fraudulent billing, tens of thousands of member disenrollments, and severe service disruptions impacting vulnerable populations, including Native American communities. Lawmakers argue that AHCCCS’s sluggish response has deepened the crisis, with incomplete data, opaque enforcement actions, and a lack of transparency on recovery efforts.
Werner’s committee has repeatedly pressed AHCCCS for detailed documentation on how it is addressing fraud, reinstating providers, and safeguarding patient access. So far, legislators say the agency’s evasiveness underscores a larger pattern of bureaucratic failure. The November 12 hearing will publicly review AHCCCS’s compliance with data and document requests, as well as evaluate whether corrective actions are being implemented.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Oct 29, 2025 | News
By Jonathan Eberle |
The Arizona Corporation Commission (ACC) announced that the U.S. District Court for the Central District of California has entered a final judgment against Safeguard Metals LLC and its owner, Jeffrey Ikahn, for orchestrating a multimillion-dollar fraud scheme that preyed on elderly and retirement-aged investors across the country.
The ruling orders approximately $25.6 million in restitution to victims and an equal civil monetary penalty, totaling more than $51 million in sanctions. The decision follows a coordinated enforcement effort between the Commodity Futures Trading Commission(CFTC) and 30 state regulators, including Arizona.
According to court findings, Safeguard Metals and Ikahn operated a deceptive precious metals investment scheme between October 2017 and July 2021, soliciting roughly $68 million—primarily from retirement accounts—belonging to at least 450 individuals. The company promised secure investments in silver and other metals but instead misled investors with false information and inflated pricing on the metals sold.
Investigators found that the firm concealed material facts, manipulated sales tactics, and grossly overcharged customers for products that were worth far less than claimed. Much of the money lost came from seniors’ life savings and retirement accounts.
“The court’s final judgment in this matter provides meaningful restitution to investors harmed by this fraudulent action and it reinforces that the Arizona Corporation Commission will take decisive action to protect investors, especially those in vulnerable communities,” said ACC Chair Kevin Thompson. “I want to thank the CFTC and the state regulators for their dedication and hard work.”
Thompson added that the case serves as a reminder of the essential role state regulators play in detecting and halting investment fraud. “This outcome is an important reminder that state securities regulators play a critical role in fighting investment fraud in all forms,” he said.
The U.S. Securities and Exchange Commission (SEC) also pursued a parallel enforcement action in 2022 against Safeguard Metals and Ikahn. Earlier this year, the court ordered the defendants to pay $25.6 million in disgorgement and an equal civil penalty, mirroring the CFTC and state regulators’ ruling. Any funds paid under one judgment will be credited toward the other to prevent duplication.
The sweeping case reflects cooperation among financial regulators from 30 states, including Alabama, Arizona, Arkansas, California, Florida, Illinois, New York, and Texas, as well as the CFTC’s national enforcement network.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | Oct 22, 2025 | News
By Staff Reporter |
It pays to know the guys making the laws from the highest offices in the land.
Senator Ruben Gallego used his voting power to protect the business interests of a longtime friend — fellow Harvard University graduate and prominent Democratic donor and activist Joe Sanberg — interests which would turn out to be fraudulent.
In August, Sanberg pleaded guilty to two counts of wire fraud perpetrated through his online financial services company, Aspiration Partners. Sanberg admitted to defrauding over $248 million.
Senator Ruben Gallego fought for the success of Sanberg’s company while in Congress.
When he was still a congressman in 2023, Gallego voted to protect against environmental, social, and governance (ESG) limitations that would have impacted Aspiration Partners. The financial services company was uniquely focused on progressive environmental and social causes, including investing in fossil fuel alternatives and selling carbon credits.
Months before that vote, Sanberg gave Gallego a positive endorsement in The Hill. FEC records show Sanberg donated just over $13,000 to Gallego’s campaign from 2014 to 2017.
“The thing about Ruben is he knows exactly who he is,” said Sanberg. “This campaign isn’t about any individual personality.”
In 2015, the two men also launched a political action committee to help elect progressive Latino candidates — LLEGO-PAC, short for Latino Leaders for Equality, Growth, Opportunity, Progressive Action and Change.
Gallego praised Sanberg as “a thought leader” and “progressive leader from day one,” and credited the financial services CEO for being the one who “recruited” him into the Democratic Party. The senator was even a part of Sanberg’s wedding in 2021, per social media posts reported on by Fox News.
“He convinced me to get more involved in politics, and has been a good guiding post for me since then,” said Gallego.
Just a few years ago, Sanberg was shopping himself around to the media as a potential Democratic candidate for president. The Atlantic published one such feature of Sanberg in 2019.
In 2021, Aspiration disclosed in its annual Securities and Exchange Commission filing that 70 percent of its revenue came from ESG services.
Senator Gallego began banking with Aspiration in 2017 and then acquired a non-public stock in the company in 2019.
However, Gallego failed to report that purchase for three years, per Fox News reporting.
Aspiration came on the progressive venture capital scene in 2013 as an “environmental” bank with a “conscience,” the brainchild of co-founders Sanberg and Andrei Cherny, the latter Arizona’s former Democratic Party chairman, congressional candidate, and a Clinton administration speechwriter.
Cherny left Aspiration in mid-October 2022, two years after Sanberg later admitted to prosecutors the company turned fraudulent.
In 2021, Sanberg went into talks with the Los Angeles Clippers basketball team about a four-year, $48 million endorsement deal to sponsor one of their players, Kawhi Leonard.
Many have come to view the endorsement deal as a workaround to the NBA salary cap — a view bolstered by comments from those within Aspiration — though the Clippers have denied this speculation.
Following Sanberg’s arrest and pleading, Aspiration rebranded as GreenFi.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Jonathan Eberle | Oct 7, 2025 | News
By Jonathan Eberle |
State Senator Carine Werner is escalating her oversight push against Arizona’s Medicaid agency, AHCCCS, after a tense committee hearing revealed what she called “catastrophic failures” in the state’s health care system.
As chair of the Senate Health and Human Services Committee, Werner convened an October 1 hearing that uncovered widespread fraud, lapses in oversight, and significant coverage disruptions for vulnerable Arizonans. Lawmakers heard testimony that outlined nearly $2.8 billion in estimated fraud, more than 140,000 unenrollments since September 2024, and deep impacts on Native American communities.
“This is about far more than numbers on a page—it’s about lives shattered and trust broken,” Werner said after the hearing. “Families lost coverage, providers were driven out by retaliation and red tape, and patient brokers were allowed to exploit Arizonans in need. We cannot allow the Governor’s state agencies to hide behind vague answers.”
Witnesses described fraudulent brokers shifting patients from Medicaid into federally subsidized marketplace plans, leaving families at risk of losing access to necessary care. Providers also reported delayed or denied payments that have forced some to close their practices, while law enforcement confirmed that just 91 arrests have been made despite widespread patient brokering schemes.
The committee also heard that Native American communities have been disproportionately affected by lapses in Medicaid coverage, with families struggling to find replacement providers or navigate bureaucratic hurdles.
In response, the committee issued a formal list of follow-up questions to AHCCCS. Lawmakers are seeking precise information on how many licensed behavioral health providers are actively serving patients, what actions are being taken to restore access to care in Native American communities, how much taxpayer money has been lost and recovered, and whether AHCCCS has held staff accountable for oversight failures.
Werner stressed that the requests are non-negotiable. “Governor Hobbs and AHCCCS owe Arizona’s taxpayers and families straight answers. The days of vague promises are over. This committee expects deliverables that prove action is being taken.”
The committee has given AHCCCS 30 days to provide a full set of responses and supporting data. A follow-up hearing is scheduled within 45 days, where lawmakers will publicly review the agency’s progress.
“Arizona deserves a health care system that protects the vulnerable instead of enabling fraud,” Werner said. “We will keep pressing until every loophole is closed, every fraudulent actor is held accountable, and every Arizonan can access care without fear of exploitation.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
