The founder and former CEO of Addiction Recovery Care (ARC), Timmy G. Robinson Jr., has been indicted on federal charges of wire fraud and money laundering. The indictment, filed in the Eastern District of Kentucky, alleges that Robinson engaged in a scheme to unlawfully enrich himself by selling the same IRS tax credits to multiple parties.
Robinson, who founded ARC in 2012 after overcoming his own struggles with addiction, has stepped down as CEO. The company, which once operated over 40 treatment centers across Kentucky, has been under scrutiny since July 2026 for alleged Medicaid fraud. Despite these challenges, ARC’s spokesperson, Vanessa Keeton, assures that all facilities, programs, and services remain open and operational.
The Alleged Scheme
The indictment details a complex financial maneuver where Robinson allegedly sold the same Employee Retention Credit (ERC) assets to two different buyers. In July 2026, Robinson sold the rights to the first tax credit to a loan company for $2.7 million. Shortly after, he allegedly sold the same credit to a second company, concealing the prior transaction. In November 2026, the second buyer transferred $2.7 million for the twice-sold tax credit.
When the IRS issued the tax refunds in December, Robinson directed ARC to use the funds for operational costs and debt obligations rather than repaying the buyers. This alleged misappropriation of funds forms the basis of the wire fraud and money laundering charges.
The Legal Battle
Robinson’s attorney, Kent Wicker, maintains that his client did not defraud anyone and has always provided high-quality care. Wicker expressed surprise at the indictment, framing it as a dispute with investors that is already being addressed in civil court. The two companies involved, Angelica Capital Trust and Clear Cove Opportunities Fund, have sued ARC to recover their money, alleging that Robinson illegally kept more than $8 million.
The indictment also mentions an ongoing FBI investigation into ARC for Medicaid fraud, which began in July 2026. The Lexington Herald-Leader and ProPublica reported in April that former employees and clients had accused ARC of falsely billing Medicaid. ARC has denied these allegations, stating that it has never knowingly or fraudulently billed Medicaid for services.
The Future of ARC
Despite the legal troubles facing its founder, ARC continues to operate normally. Cassandra Webb has stepped in as Interim CEO, ensuring that the company’s mission to help individuals find recovery, healing, and hope remains unchanged. The leadership team, employees, and clinical staff are committed to delivering high-quality care and support to their clients.
Robinson faces up to 20 years in prison and a $250,000 fine for the wire fraud count, with each money laundering count carrying up to 10 years in prison and a $250,000 fine. As the legal process unfolds, ARC remains focused on its core mission, providing essential services to those in need.
