Addiction Recovery Care Founder Timmy G. Robinson Jr. Indicted on Federal Fraud Charges
Timmy G. Robinson Jr., the founder and former CEO of Addiction Recovery Care, LLC (ARC), was indicted by a federal grand jury on Thursday on charges of wire fraud and money laundering. The indictment, unsealed in the U.S. District Court for the Eastern District of Kentucky, alleges a scheme involving the fraudulent sale of IRS tax credits.
The Allegations: Double-Selling Tax Credits
According to the indictment, Robinson allegedly engaged in a scheme to enrich himself by selling rights to the same Employee Retention Credit (ERC) to two separate parties. The ERC is a COVID-19-era tax incentive based on payroll information.
The indictment details that in July 2025, Robinson sold the rights to an anticipated tax refund to a buyer for a $2.7 million advance payment. In November 2025, despite the prior agreement, Robinson allegedly sold the rights to those same assets to a second buyer, falsely representing that the credits were available and had not been previously encumbered. This second transaction resulted in an additional $4.7 million advance payment to ARC.
When the IRS issued the tax credit payments in December 2025, the indictment states that Robinson directed ARC to use the funds for operational costs and debt obligations rather than repaying either of the buyers.
Legal and Professional Consequences
Robinson has resigned from his position as CEO of ARC, according to company spokesperson Vanessa Keeton. If convicted, Robinson faces significant prison time. The wire fraud charge carries a maximum penalty of 20 years in federal prison, while each count of money laundering carries up to 10 years. Both charges include potential fines of $250,000 or twice the gain or loss associated with the crimes.
Robinson’s attorney, Kent Wicker, stated that his client denies the allegations. “To be clear, Mr. Robinson did not defraud anyone, did not gain anything from the transaction at issue, and he has done nothing but deliver high quality care for over a decade to thousands of Kentuckians,” Wicker said, noting that the defense looks forward to addressing the matter in court.
Ongoing Federal Scrutiny
The indictment arrives amid broader legal challenges for ARC. The company has been under investigation by the FBI regarding allegations of Medicaid fraud since July 2024. While the company has previously denied knowingly or fraudulently billing Medicaid, the federal investigation remains active.
Despite the leadership change and the ongoing federal case, ARC officials maintain that the organization continues to provide services. “All facilities, programs, and services remain open and fully operational,” Keeton stated. “Our leadership team, employees, and clinical staff remain committed to delivering high-quality care and support to the individuals and families we serve.”
Key Takeaways
- Federal Indictment: Timmy G. Robinson Jr. Faces one count of wire fraud and two counts of money laundering.
- Scheme Details: Prosecutors allege Robinson sold the same IRS Employee Retention Credits to two different companies, collecting millions in advance payments for both.
- Leadership Change: Robinson has resigned as CEO of Addiction Recovery Care.
- Broader Investigations: The company remains under an active FBI investigation concerning potential Medicaid billing fraud.
- Company Status: ARC asserts that its clinical operations and patient services remain fully functional despite the legal developments.
This is a developing story. Further details regarding the court proceedings will be provided as they become available.