By Melissa Patrick, Kentucky Health News · June 8, 2026 Tim Robinson, former chief executive officer of Addiction Recovery Care, was indicted in federal court on Thursday on wire transmission and “monetary transaction in criminally derived property” in “unlawful activity” charges. The indi ctment, which was filed in the United States District Court in the Eastern District of Kentucky, says Robinson “knowingly, and with intent to defraud, devised and intended to devise a scheme to defraud and obtain money by means of materially false and fraudulent pretenses, representations, and promises, and concealment of material facts.” Kent Wicker, Robinson’s attorney, said in a statement that “We were surprised to learn today that the government had brought an indictment over a dispute with some investors that’s now pending in a civil courtroom.” “The government has been investigating ARC for healthcare fraud over two years now, with the full cooperation of the company, and they have found no criminal conduct,” Wicker said. “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. We look forward to defending this case in court.” ARC said in a statement Thursday that Robinson is stepping down as CEO immediately and Cassandra Webb will serve as interim CEO in addition to her position as president and chief operating officer. “ARC continues to operate normally. All facilities, programs and services remain open and fully operational. Our leadership team, employees and clinical staff remain committed to delivering high-quality care and support to the individuals and families we serve,” the ARC statement said. “Our commitment to our clients, employees, and communities remains unchanged, and we will continue carrying out our mission of helping individuals find recovery, healing and hope.” The indictment says Robinson acted “in order to unlawfully enrich himself.” Robinson “shall forfeit to the United States any and all property, real or personal, which constitutes or is derived from proceeds traceable to the violation,” the indictment states. In January, Angelica Capital Trust sued Addiction Recovery Care, Kentucky’s largest provider of addiction treatment, alleging it committed “massive fraud” in Medicaid and Medicare billing. In April, the Lexington Herald Leader and ProPublica reported an investigation into ARC’s transactions and its “alleged billing scheme.” According to the Thursday indictment, penalties can include imprisonment, fines of $250,000 and supervision, plus forfeiture and restitution. Read the indictment here: ARC indictment To locate recovery services in Kentucky, visit https://findhelpnow.org/ky. The National Suicide Prevention Lifeline is 988. The Substance Abuse and Mental Health Services Administration has a 24/7 helpline for people in need of mental health or substance use support: 1-800-662-4357.  Kentucky Lantern is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Linda Blackford for questions: [email protected]. View in feeds The post Former CEO of Addiction Recovery Care federally indicted, resigns appeared first on The Lexington Times. ...read more read less