KENTUCKY — Timmy G. Robinson Jr. was indicted by a federal grand jury in the Eastern District of Kentucky on charges of wire fraud and money laundering. The indictment alleges Robinson fraudulently sold the same IRS tax credit to two separate companies.
Robinson is charged with two counts of money laundering for spending the proceeds from the fraudulent sale. The indictment states he devised a scheme to "unlawfully enrich himself."
Robinson resigned as CEO of Addiction Recovery Care, according to a spokesperson. The company previously operated more than 40 drug treatment centers in Kentucky. The FBI has been investigating the company for Medicaid fraud since July 2024, an investigation which is ongoing.
The company was sued by two companies, including Angelica Capital Trust, concerning the IRS credit transactions. These companies allege that it illegally retained over $8 million that was owed to them after receiving the IRS credits. They also allege it refused to repay the funds, in part, to make a preliminary $28 million settlement with the Department of Justice over alleged Medicaid fraud.
The company applied for two COVID-19-related tax credits starting in 2023, totaling nearly $7 million. A loan company agreed to pay the company $2.7 million in exchange for future repayment of the tax credit once IRS funds arrived. Robinson signed an agreement with the first buyer, who then wired $2.7 million to the company.
In November, Robinson signed an agreement with a second company to sell the same credit amount. The second buyer sent a wire transfer that included $2.7 million for the twice-sold credit. The indictment states Robinson concealed the prior transaction from the second buyer. In December, after the IRS paid the tax refunds to the company, it used the funds for operational costs and debt obligations under Robinson's direction.
Kent Wicker, an attorney for Robinson, stated he and Robinson were surprised to learn of an indictment regarding a dispute with investors that is pending in civil courtroom proceedings. Wicker indicated the indictment was unexpected given the ongoing civil case. "To be clear, Mr. Robinson did not defraud anyone, did not gain anything from the transaction at issue, and he has done nothing but deliver high quality care for over a decade to thousands of Kentuckians," Wicker said. "We look forward to defending this case in court."
Robinson faces a penalty of up to 20 years in prison and a $250,000 fine for the wire fraud charge. Each money laundering charge carries a penalty of up to 10 years in prison and a $250,000 fine. He founded the company in 2012. Robinson stated in January that the sale of the company was imminent, and he would make payments to creditors upon the sale.