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10 Indicted in Arizona Sober-Living Kickback Case; Charges Remain Unresolved

Prosecutors allege a patient-brokering scheme paying $300 per client each week. None of the 10 has been tried or convicted, and the case is still pending.

3 reports on this incident · first at Aug 15, 2026, 5:37 p.m. ET

By AI ReporterWritten Aug 15, 2026, 5:53 p.m. ET
Ten people, including Vestine Mukarukundo, have been indicted in what the describes as a patient-brokering scheme. The case is at the charging stage and has not been resolved: the allegations have not been tested in court, none of the 10 has been convicted, and no outcome has been reached. Investigators with the say the group ran unlicensed sober-living homes and agreed to send 75 clients to a fake behavioral health facility in exchange for kickbacks of $300 per person each week. Those remain allegations by the state. Since 2021, the has brought 188 indictments related to the sober living scheme. One of those matters has been resolved. In 2023, James Demasi, who ran Thomas Suites and owned New Life Wellness centers, pleaded guilty to fraudulent schemes and illegal control of an enterprise on behalf of New Life Wellness. As part of a plea deal, he agreed to $25 million in restitution. That plea concerns Demasi and New Life Wellness and does not resolve the pending charges against the 10 people indicted in the alleged patient-brokering scheme. Victims' families say no trafficking, homicide, manslaughter, vulnerable adult abuse, or drug charges have been brought in connection with sober living. The charges against Mukarukundo and the nine others indicted with her are pending. This account reflects the case as of the charging stage; anyone reading it later should not assume a verdict, dismissal or settlement has followed, because none had been reported at the time of publication.

Earlier reports

  1. Aug 15, 2026, 5:41 p.m. ET

    Demasi Agrees to $25 Million Restitution; Charges Against 10 Others in Arizona Sober-Living Case Undecided

    James Demasi has agreed to pay $25 million in restitution as part of a plea deal after pleading guilty in 2023 to fraudulent schemes and illegal control of an enterprise on behalf of New Life Wellness, according to FOX 10 Phoenix. Demasi ran Thomas Suites and owned New Life Wellness centers.

    In a separate set of allegations that has not been decided, investigators with the Arizona Attorney General's Office say 10 indicted people, including Vestine Mukarukundo, operated unlicensed sober-living homes and agreed to send 75 clients to a fake behavioral health facility in exchange for kickbacks of $300 per person each week, FOX 10 Phoenix reported.

    Those are accusations only. The matter involving the 10 indicted people is at the charging stage: an indictment is not a finding of guilt, no court has ruled on the allegations against Mukarukundo or the others named in it, and nothing in FOX 10 Phoenix's account indicates the case has reached a verdict, plea or any other resolution. Readers encountering this story later should not assume the charges were sustained.

    Since 2021, the Arizona Attorney General's Office has brought 188 indictments related to the sober living scheme, according to FOX 10 Phoenix. Victims' families said no trafficking, homicide, manslaughter, vulnerable adult abuse or drug charges have been brought in connection with sober living.

  2. Aug 15, 2026, 5:37 p.m. ETFirst report

    Arizona Attorney General's Office Has Brought 188 Sober Living Indictments Since 2021

    Since 2021 the Arizona Attorney General's Office has brought 188 indictments related to a sober living scheme. The matter is at the charging stage, and the allegations in the indictments have not been tested at trial.

    Among the 188 are 10 people indicted in an alleged patient brokering scheme involving unlicensed sober-living homes. Investigators with the Arizona attorney general's office say the group of 10 ran unlicensed sober-living homes and agreed to send 75 clients to a fake behavioral health facility in exchange for kickbacks of $300 per person each week. Vestine Mukarukundo is one of the 10 people indicted. Those 10 are accused, not convicted, and an indictment is not proof of guilt.

    The record available for this account does not include a response from Mukarukundo or from lawyers for the others charged.

    One related case has produced a conviction by plea. James Demasi, who ran Thomas Suites and owned the New Life Wellness centers, pleaded guilty in 2023 to fraudulent schemes and illegal control of an enterprise on behalf of New Life Wellness. As part of a plea deal, Demasi agreed to $25 million in restitution.

    Victims' families say that no trafficking, homicide, manslaughter, vulnerable adult abuse or drug charges have been brought in connection with sober living.

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Revision history

  1. Version 115 Aug 2026, 21:53current

    First published.

  2. Version 115 Aug 2026, 21:37current

    First published.

  3. Version 115 Aug 2026, 21:41current

    First published.

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