Lawsuit claims Addiction Recovery Care in ‘desperate straits,’ owes feds $28M

By: Deborah Yetter

Outlets: Kentucky Lantern

Published: January 22, 2026

Words: 603

Last Updated: 3 weeks, 4 days ago

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Addiction Recovery Care, or ARC, Kentucky’s largest provider of addiction treatment, has been hit by a federal lawsuit in New York, alleging it committed “massive fraud” in Medicaid and Medicare billing and is now scrambling to raise nearly $28 million for a civil settlement with the federal government.

The allegations are included in a lawsuit by Angelica Capital Trust against ARC and its owners Tim Robinson and his wife Lelia, of Louisa, claiming the company …

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