Kris Mayes and Warren Petersen Clash as Arizona Medicaid Fraud Scandal Escalates

Attorney General Kris Mayes (D-AZ) and state Senate President Warren Petersen (R-AZ) are in an open dispute, and at the center of it is a Medicaid fraud scandal that has now landed in the hands of federal prosecutors.

The conflict surfaced this week after Senator Carine Werner (R-AZ) sent a formal letter directly to U.S. Attorney Timothy Courchaine requesting federal criminal charges, civil enforcement, and asset forfeiture tied to alleged fraud targeting Native American patients on tribal lands.

The move came after Sen. Werner had already turned whistleblower materials over to the Attorney General's office and, in her view, received an inadequate response.

Now, after a year of pushing by Werner, her Senate Health, Education, Labor, and Pensions Committee has held five hearings examining allegations she says point to more than $2.8 billion in fraudulent activity running through Arizona's Medicaid program (AHCCCS).

Whistleblowers came forward this month with detailed records alleging patient brokering, fraudulent billing, and repeat offenders who allegedly restructured and continued operating under new names despite prior enforcement efforts.

"Vulnerable Native American patients are being exploited right now while taxpayers foot the bill," Werner said. "The excuses and delays must end."

Growing Argument

KTAR reported that AG Mayes responded sharply, saying Werner had been informed that the case had been referred to the FBI and that federal investigators had agreed to incorporate the new whistleblower evidence into their ongoing investigation.

In Mayes' telling, Werner had initially contacted her office requesting a meeting on an urgent matter, only to later go public with accusations.

"She emailed my office last week and said she needed to meet with investigators on an urgent matter," Mayes said, adding that once her office explained the FBI's involvement, Werner "turned this into a political attack."

Senate President Petersen pushed back firmly in Werner's defense, taking direct aim at Mayes.

"Instead of saying thank you, and working together, and being collaborative, our petulant and incompetent Attorney General called her a liar and stupid,” Petersen said.

He argued that Werner was simply doing the job that should already have been handled, and was blunt about where he believed the fault lies. "This is really a failure of the executive," he said. "There are tons of laws that are being broken here."

With the case now in federal hands, the public dispute between Mayes and Petersen raises questions about whether Arizona's top officials can find common ground on an issue that, by all accounts, demands a coordinated response.

For now, the finger-pointing continues, while the underlying fraud allegations remain unresolved.