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Scottsdale nonprofit awarded nearly $500K to help tribal victims of sober living fraud

A crowd listens to families and victims of sober living homes share their devastating stories at a town hall meeting organized by 'Stolen People, Stolen Benefits,' a grassroots watchdog group on Tuesday, March 26.
Gabriel Pietrorazio/KJZZ
A crowd listens to families and victims of sober living homes share their devastating stories at a town hall meeting organized by 'Stolen People, Stolen Benefits,' a grassroots watchdog group on Tuesday, March 26.

Scottsdale Recovery Continued is receiving nearly $500,000 from the state to support Native American victims of fraudulent sober living homes.

The grant is part of a $6 million initiative from Arizona Attorney General Kris Mayes, created in response to a $2.8 billion Medicaid fraud scheme that exploited tribal members seeking addiction treatment.

The group is one of 11 organizations awarded funding through the state’s Sober Living Home Support Program.

Despite more than $6 million being available, only 11 entities applied — leaving over $800,000 unclaimed. A spokesperson for the Attorney General’s Office said the remaining funds may be distributed in future grant cycles.

Scottsdale Recovery Continued will use the funding to expand culturally rooted recovery and housing services for tribal victims, in partnership with Scottsdale Recovery Center.

Lee Yaiva, CEO of the organization and a member of the Hopi Tribe, emphasized the importance of transparency and cultural relevance.

“For us, there’s things in place to make sure that there are checks and balances that will allow us the opportunity to take that information, give it back, and say ‘This is what we did with the money,” he said.

The center offers a specialized Native American Drug and Alcohol Treatment Program that blends traditional healing with clinical care.

“Our responsibility is to empower and educate them so they can make informed decisions based on need and integrity as opposed to being capitalized on just because of their existing condition,” Yaiva said.

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Nick Karmia is a reporter at KJZZ.