The former CEO of Apache Behavioral Health Services in Whiteriver and Cibecue, Ariz., has been charged in a scheme to defraud millions of dollars from the federally funded tribal healthcare provider.
On Dec. 14, a federal grand jury returned a 40-count indictment against Kevin McKenzie, 47, and Corina Martinez, 41, of Tucson.
The indictment alleges that from 2015 to July 2023, Mr. McKenzie, first as COO and later as CEO of ABHS, orchestrated a fraudulent scheme to misappropriate millions of dollars from ABHS, which is organized by and under the laws of the White Mountain Apache Tribe to provide behavioral health services to individuals and families residing on the Fort Apache Reservation and enrolled in the White Mountain Apache Tribe.
Mr. McKenzie allegedly used contracts to funnel funds from ABHS to shell companies he owned, including one contract to which ABHS paid over $32 million, $14 million of which was redirected as proceeds to a shell company Mr. McKenzie owned.
The indictment also accuses Mr. McKenzie, in his capacity as CEO, and Ms. Martinez, through her company Evolved, LLC, of entering a fictitious "referral" contract to further embezzle funds from ABHS. Under this agreement, ABHS paid $15 million to Ms. Martinez's company, with portions of the fraudulent proceeds divided between the two and used to fund personal credit card bills and luxury purchases, such as a Rolls Royce Ghost and a home for Mr. McKenzie's family. The government alleges that Evolved LLC did not render any services to ABHS.
Mr. McKenzie and Ms. Martinez are charged with conspiracy to embezzle from an Indian Tribal Organization; embezzlement; theft concerning programs receiving federal funds; wire fraud; conspiracy to commit wire fraud; conspiracy to commit money laundering; and engaging in monetary transactions in property derived from specified unlawful activity. Mr. McKenzie was also charged with attempted tampering with a witness.
The FBI conducted the investigation in this case, and the U.S. Attorney's Office, District of Arizona, is handling the prosecution.