Timmy G. Robinson Jr., who founded and owned what was once Kentucky’s largest drug rehabilitation company, was indicted Thursday by a federal grand jury on charges of wire fraud and money laundering. The indictment, filed in the Eastern District of Kentucky, accuses Robinson of fraudulently selling millions of dollars’ worth of the same IRS tax credit to two separate companies. Robinson crafted a plan to illegally profit by selling the tax credits to two different buyers, according to the indictment. Robinson faces an additional two counts of money laundering for using the money obtained from the fraudulent sale. He has stepped down as CEO of ARC, the company’s spokesperson Vanessa Keeton announced on Thursday. Robinson, now 50, started the company in 2012 after getting sober and saying he felt called by God to help others in the state struggling with addiction. ARC, which once ran more than 40 treatment centers across the state, has been under FBI investigation for Medicaid fraud since July 2024. That probe remains active, the FBI stated on Friday. In April, the Lexington Herald-Leader, collaborating with ProPublica, published firsthand accounts from former ARC employees and clients. They reported being instructed by ARC to submit false Medicaid bills or seeing others bill for services that were never actually delivered. The company stated at the time that it “has never knowingly or fraudulently billed Medicaid for services, and there is no evidence that the organization encouraged employees to falsify group notes for billing purposes.” Robinson’s lawyer, Kent Wicker, stated that both he and his client were surprised to learn of the indictment, which stemmed from “a dispute with some investors that is now pending in a civil courtroom.”
