Joe Sonka, Federal judge freezes bank assets of Kentucky-based Addiction Recovery Care, Louisville Public Media (Jan. 23, 2026)
Summary
Louisville Public Media article by Joe Sonka, published January 23, 2026, reporting that U.S. District Judge George Daniels in Manhattan ordered a freeze of $4.7 million in the bank account of Addiction Recovery Care (ARC), most of the $5.7 million that ARC said it had left in a previous court filing. The order lets ARC keep $1 million for "daily operating expenses." The article says Angelica Capital Trust sued ARC and its owner Tim Robinson, alleging default on a $5.4 million loan to be repaid with $8.1 million of tax credits expected from the IRS. It also says ARC has been under an FBI investigation since 2024 for potential Medicaid fraud.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Joe Sonka, Federal judge freezes bank assets of Kentucky-based Addiction Recovery Care, Louisville Public Media (Jan. 23, 2026).”
Original at www.lpm.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/joe-sonka-federal-judge-freezes-bank-assets-of-kentucky-based-addictio-ef9624a785/
, SHA-256 f3eefff9ddc3ba196b69efc7836613a67563d57706c30e6e157963611476b553.Full text
Federal judge freezes bank assets of Kentucky-based Addiction Recovery Care Louisville Public Media | By Joe Sonka Published January 23, 2026 at 6:11 PM EST Courtesy / Addiction Recovery Care A federal judge in Manhattan has ordered most of the Kentucky treatment provider’s liquid assets be frozen. A federal judge in New York ordered a freeze to most bank assets remaining of Addiction Recovery Care, the Kentucky provider currently under an FBI investigation for potential Medicaid fraud. Addiction Recovery Care faced yet another blow on Friday, as a federal judge in Manhattan ordered that most of the Kentucky treatment provider’s liquid assets be frozen as part of an ongoing lawsuit. Already under an FBI investigation since 2024 and facing large-scale closings and layoffs over the past year, U.S. District Judge George Daniels ordered a freeze of $4.7 million in ARC’s bank account — most of the $5.7 million that ARC said it had left in a previous court filing. ARC and its owner Tim Robinson were sued last week by Angelica Capital Trust, alleging that the company defaulted on the repayment of its loan. Angelica loaned ARC $5.4 million in November, with ARC indicating it would repay the loan with $8.1 million of tax credits they expected to receive from the IRS in December. Angelica’s lawsuit alleges that ARC instead kept and continued spending the tax credits, rather than paying the company back for the loan. The judge’s order on Friday allows ARC to keep $1 million in its account that can go towards “daily operating expenses.” A spokesperson for ARC did not immediately return a request for comment on the judge’s order. The Kentucky Lantern previously reported that Angelica’s lawsuit alleges ARC committed “massive” fraud in its Medicaid billing and is desperately trying to raise roughly $28 million for a federal civil settlement. In October, ARC announced that Florida company Ethema Health Corporation had signed a letter of intent to purchase its Kentucky treatment facilities. The company’s CEO told Kentucky Public Radio at the time that ARC would use part of the funds from the purchase to pay the U.S. Department of Justice as part of a pending settlement over the Medicaid fraud investigation — though he subsequently said he may have misspoke. In early January, Ethema announced in a press release that both companies had mutually decided not to move forward with the deal . When the FBI investigation was announced in the summer of 2024, ARC had more than 30 facilities related to drug addiction treatment throughout Kentucky, by far the largest provider in the state. However, that number has since dwindled with closures and layoffs, with ARC announcing last September that it was closing five more facilities and laying off more staff, leaving it with just 14 facilities. News Joe Sonka Joe is the enterprise statehouse reporter for Kentucky Public Radio, a collaboration including Louisville Public Media, WEKU-Lexington/Richmond, WKU Public Radio and WKMS-Murray. You can email Joe at jsonka@lpm.org and find him at BlueSky (@joesonka.lpm.org). See stories by Joe Sonka
File and source
- File
- federal-judge-freezes-bank-assets-of-kentucky-based-addiction-recovery_299d7e5385.html
- Size
- 205,938 bytes
- SHA-256
- f3eefff9ddc3ba196b69efc7836613a67563d57706c30e6e157963611476b553
- Original
- www.lpm.org