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Prosecutors speak out about case against alleged AHCCCS embezzler

Prosecutors are giving more details into the alleged scheme that allowed a former state employee to steal money from AHCCCS.

Investigators say 35-year-old Michael Veit and an associate Michael Cameron worked together to steal potentially millions of dollars from the state healthcare program. It was money that prosecutors believe was distributed to family members who live in a large home in Surprise and a gated compound in North Phoenix.

"Considerable and unusual cash amounts in the possession of Mr. Veits sons who had $200,000 cash in his home, and $17,000 in his wife's purse," said Mary McGary.

Special Agents with the Arizona Attorney Generals Office arrested Veit at his home on Wednesday. Cameron was arrested at his condo at a gated community in Paradise Valley.

The judge set their bond at $1 million as prosecutors feared they would flee the country.

"At this point we did not find the passport belonging to Mr. Cameron, we were given information by a bank that he had withdrawn $42,000 over the past week, and we were told he was planning a trip to Belize," said McGary.

According to court documents, Veit funneled money into an account set up with the same name as the company AHCCCS worked with, Ikon Office Solutions. So while it appeared he was paying the legitimate company, potentially millions went into the bogus accounts.

"The legitimate Ikon with whom they contracted and did services said they were paid $10.3 million less than what AHCCCS said they were paid," said McGary.