Former Hacienda HealthCare CEO sentenced for fraud

The former CEO of Phoenix-based Hacienda HealthCare William Timmons has been sentenced for his role in a fraud scheme that bilked millions of dollars from Arizona taxpayers, the Arizona attorney general announced Nov. 19. 

Mr. Timmons, who served as CEO of Hacienda HealthCare from July 1989 to January 2019, was sentenced to three years of probation and ordered to pay $774,500 in restitution for his involvement in the scheme. He was sentenced about five months after pleading guilty to two counts of fraudulent schemes and artifices, which are felonies.  

Mr. Timmons and Hacienda HealthCare's long-time CFO Joseph O'Malley were indicted in August 2020 on a series of charges related to their alleged involvement in the scheme. Prosecutors alleged the duo misallocated funds from the Arizona Department of Economic Security's division of developmental disabilities and the Arizona Health Care Cost Containment System.

The case against Mr. O'Malley is ongoing, according to the Arizona attorney general's office. 

Hacienda HealthCare provides a variety of services, including long-term, pediatric and home care.

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