Former Hacienda HealthCare CEO sentenced to 3 years probation for fraud

(AG Mark Brnovich Office)
Published: Nov. 19, 2021 at 2:50 PM MST
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TUCSON, Ariz. (KOLD News 13) - Arizona Attorney General Mark Brnovich announced that William J. Timmons, former CEO of Hacienda HealthCare Inc., was sentenced to three years supervised probation and financial restitution for fraud.

In June 2021, Timmons pleaded guilty to two counts of fraudulent schemes and artifices.

As part of the agreement with the State of Arizona, Timmons agreed to pay $500,000 to AHCCCS and $274,500 to the Attorney General’s Anti-Racketeering Revolving Fund.

Timmons along with Joseph O’ Malley, the former Chief Financial Officer, were both indicted in August 2020.

According to a news release, from 2013 until June 30, 2018, Timmons and O’Malley allegedly “misallocated” money from the state by “by manipulating costs to avoid repayments of state funds in favor of inflated salaries and bonuses,” which resulted in overpayments of over a million dollars by the state.

In a related civil case settlement announced in September 2020, Hacienda Healthcare, Inc. agreed to pay $11 million to resolve the case that had been brought by the Arizona Attorney General’s Office.

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