A business convicted of defrauding Arizona’s Medicaid program was ordered to pay more than $34 million in fines and restitution after a Maricopa County Superior Court conviction.

L & L Investments LLC, which ran what officials said were fraudulent sober living homes, was ordered to pay about $30.2 million to the Arizona Health Care Cost Containment System along with a $4 million penalty, the Arizona Attorney General’s Office announced in a press release.

“This wasn’t just theft from the state — it was exploitation of vulnerable Arizonans who were seeking help in their recovery,” said Attorney General Kris Mayes in the release. “This fraud severely undermined trust in behavioral health services and harmed countless lives. My office will continue to aggressively prosecute fraudsters and fight to recover funds stolen from programs meant to support people in crisis.”

L & L Investments, which started in Nevada before opening operations in Arizona, was indicted in 2021 following an investigation by the Arizona Attorney General’s Health Care Fraud and Abuse Section, the Office of Inspector General for the U.S. Department of Health and Human Services, and the AHCCCS Office of Inspector General. The investigation uncovered multiple fraudulent billing schemes that drained millions from AHCCCS under the guise of providing behavioral health services.

A jury found L & L Investments guilty in May 2024 of multiple felony charges, including conspiracy, illegal control of an enterprise, theft, and fraudulent schemes and artifices. At sentencing in August 2024, the company was fined $4 million and sentenced to seven years of probation. The court deferred a decision on restitution until this month’s hearing.