LOUISA, Ky. (WMDJ) — The CEO and owner of Addiction Recovery Care, which operates treatment facilities across Eastern Kentucky, has been indicted on federal fraud and money laundering charges.
Timmy G. Robinson Jr., of Louisa, is charged in U.S. District Court for the Eastern District of Kentucky with one count of wire fraud and two counts of engaging in monetary transactions involving property derived from unlawful activity.
According to the indictment, Robinson owned and served as CEO of ARC, a behavioral health and substance abuse treatment provider with residential and outpatient facilities throughout the region. ARC operates the Riverplace men's residential treatment center in Pike County and the White Oak Hill residential treatment center in Martin County. The organization also previously operated an outpatient facility in Prestonsburg.
Federal prosecutors allege Robinson sought two employee retention tax credits from the IRS during the COVID-19 pandemic totaling nearly $6.9 million.
The indictment alleges Robinson sold the rights to the credits to one buyer for $2.7 million, then later sold rights to the same credits to a second buyer for $4.7 million without disclosing the previous agreement.
When ARC received the tax credit funds in December, prosecutors allege Robinson directed the organization not to transfer the money to either buyer and instead used the funds for other operational costs and obligations.
The indictment also seeks forfeiture of proceeds connected to the alleged offenses.
If convicted, Robinson faces up to 20 years in prison on the wire fraud charge and up to 10 years on each of the money laundering charges.
