ASHLAND, Ky. (WMDJ) — Addiction Recovery Care founder Timmy G. Robinson Jr. pleaded not guilty June 17 to federal wire fraud and money laundering charges.

Robinson, of Louisa, entered the plea during an arraignment in U.S. District Court in Ashland. The court ordered him released pending trial under a series of conditions.

As part of those conditions, Robinson must remain within the Eastern District of Kentucky, avoid contact with potential victims or witnesses in the case and obtain approval before opening certain financial accounts or liquidating assets. He is also prohibited from possessing firearms.

A federal grand jury indicted Robinson on June 4 on one count of wire fraud and two counts of money laundering.

According to the indictment, Robinson is accused of orchestrating a scheme involving millions of dollars in Employee Retention Tax Credits issued during the COVID-19 pandemic. Prosecutors allege he sold rights to the same tax credits to multiple buyers and later directed that the funds be used for other business expenses after the credits were received.

Robinson is the founder and former CEO of Addiction Recovery Care, which operates treatment facilities across Eastern Kentucky, including the Riverplace men's residential treatment center in Pike County and the White Oak Hill residential treatment center in Martin County. ARC also previously operated an outpatient facility in Prestonsburg.

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.