Arizona Pastor, 19 Others Indicted in $60 Million Medicaid Fraud Scheme Targeting Native American Health Plan

Arizona Attorney General Kris Mayes

PHOENIX — The Arizona Attorney General’s Office has indicted 20 individuals, including a church pastor, in connection with a massive $60 million Medicaid fraud scheme that targeted the Arizona Health Care Cost Containment System (AHCCCS). The conspiracy, which involved fraudulent claims for unprovided drug and alcohol rehabilitation services, ran from August 2022 through January 2024 and exploited vulnerabilities in a health plan meant to serve Native American communities.

The latest indictments come amid a broader investigation into fraudulent billing schemes that have cost taxpayers an estimated $2.5 billion. The fraud centered on the American Indian Health Plan, a state-funded Medicaid program designed to expedite care with minimal oversight for Native Americans in remote areas. Authorities allege that these systemic gaps were intentionally abused by fraudsters who submitted fake claims while offering little or no actual care.

Hope of Life International Church

Seventeen individuals and two business entities, including a church, were named in the new indictments. Three other individuals were also charged but not publicly identified. Most defendants were arraigned on May 20, with others scheduled for May 21 and May 27.

At the center of the case are Desire Rusingizwa and Fabrice Mvuyekure, founders of Happy House Behavioral Health. Prosecutors allege the two submitted over $60 million in false Medicaid claims between August 2022 and July 2023. Many of the patients listed in the claims were either deceased, incarcerated, or hospitalized at the time. AHCCCS suspended Happy House in July 2023.

Pastor Theodore Mucuranyana of Hope of Life International Church

Court documents reveal that Happy House operated on land leased from Hope of Life International Church, whose pastor, Theodore Mucuranyana, was indicted for money laundering alongside the church itself. After receiving a notice of investigation from state officials, Happy House transferred over $5 million to the church, which later wired $2 million to an undisclosed entity in Rwanda.

The funds allegedly fueled an expansive racketeering operation. According to the indictment, some patients were kept in care homes using alcohol and drugs to ensure continued billing. The scheme involved 11 sober living businesses, which prosecutors say illegally received Medicaid funds by conspiring with Happy House. These facilities are supposed to be self-funded by residents through employment, not public insurance.

A July 2023 transaction included a $2.8 million check to Mvuyekure, with another check of equal value issued the same day to a listed Happy House principal who has not been indicted. Happy House also issued two large checks to Hope of Life Church—$500,000 in June and $5 million in July 2023. In August, the church used over $900,000 to purchase a five-acre property in Maricopa County. Online real estate listings describe the parcel as an ideal location for a luxury home.

During a June 2024 search of the homes of Rusingizwa and Mvuyekure in Peoria, investigators seized luxury items including high-end watches, jewelry, and handbags.

Attorneys representing Rusingizwa and Mucuranyana denied the allegations. Rusingizwa’s attorney described him as a “pious family man with no criminal history” and claimed Happy House provided legitimate services. Mucuranyana’s attorney blamed state regulators for failing to detect the $60 million in fraudulent payouts, calling the charges against the pastor “baseless.” An attorney for Hope of Life Church said the church merely served as a landlord and had no involvement in Happy House’s internal operations.

The grand jury officially charged the defendants on April 21.