Group home nurses go unpaid for weeks amid state investigation of AZ provider

PHOENIX - Many nurses say they haven't been paid for weeks as the state is investigating a company that serves clients with developmental disabilities across Arizona. Legend DDD Services, LLC has gone radio silent, employees say.

What we know:

FOX 10 made multiple attempts to reach out to Legend DDD Services, with no response, similar results that now former employees of the health care provider say they have dealt with for weeks.

When asked how much they are owed, one licensed practical nurse said, "They owe me about $4,000."

"They owe me $3,000," said Carlota Hilbert, another LPN.

Rosabelle Oben, also a licensed practical nurse, added, "At least $2,000."

Three licensed practical nurses who worked at multiple nursing supported group homes owned by Legend DDD Services say it is hard to get a hold of anyone there. Legend DDD Services is a provider that partners with the state's Department of Economic Security under its Division of Developmental Disabilities.

Meanwhile, FOX 10 confirmed the state is investigating Legend DDD, saying in a statement: "The health, safety and well-being of DDD members is our top priority, and we are committed to ensuring that all providers offer high-quality services to our members. When any issues in services or operations are reported impacting member care, DDD conducts thorough investigations and collaborates closely with our partners to take action when necessary to ensure essential services are available to members."

The investigation does not appear to be about unpaid wages. A spokesperson for the Department of Economic Security says the department does not comment on investigative activity to protect the integrity of the process.

What they're saying:

Oben says nurses received what they thought was reassurance in the days leading up to Sept. 18, payday.

"And the messages stated, 'We're waiting for updates from the state and once we get updates we will process the check,'" Oben said.

Multiple employees confirmed that statement, but payday came and went. The Department of Economic Security was asked if the state was possibly withholding funds due to the investigation.

The department says the Division of Developmental Disabilities’ policy is to send payment for "all authorized services rendered by a provider in full compliance with contractual terms and established procedures. DDD has done so with regard to the provider in question."

While waiting to get paid, Oben says she and other employees couldn't access the app that controls payroll and schedules.
"I just had to find out one day that I was taken off schedule. And the last time I checked my PayLocity account, I couldn't find any information anymore," Oben said.

Nurses like Hilbert say they are also locked out of their accounts. About a week after Sept. 18, she says management said paychecks would be printed for pickup.

"We arrived at the office, and it was closed on the 25th," Hilbert said.

Hilbert says that is when calls and texts stopped being answered.

"No one will answer us, no one would respond to emails, they won't respond to anyone's texts," she said.

One nurse who does not want to identify herself wants Legend DDD to know how her family is struggling.

"Everybody is technically if I’m going to be real, is check to check in this economy. I have insurance, I have car note, I have day care fees, I have three kids," the anonymous licensed practical nurse said. "My account is negative at this point, I think about 700 dollars."

Dig deeper:

Emails, texts and calls were directed to Legend DDD’s CEO, Kerri Masengale. Masengale is also listed as the owner of Paradise Living Centers on their website.

The co-owner and medical director, Dr. Aldaoud, also owns Legend DDD, according to records from the Arizona Corporation Commission. He did not respond to requests for comment.

There are 10 Legend DDD "nursing supported group homes" licensed with Arizona’s Department of Health Services, according to the ADHS website. Since 2024, there have been 16 enforcements issued by the Arizona Department of Health Services for 25 violations. Those violations include failing to ensure that staff had skills and knowledge before providing services and failing to ensure the number and types of nurses and staff required on site.

"They were very much not attentive to what was going on in the houses," Hilbert said. "Literally, we was always understaffed. It was times that nurses was working 24 hours straight because we had nobody to come relieve us."

Multiple employees say several group homes shut down just before the paychecks stopped coming. FOX 10 obtained an email from Legend DDD to staff, saying Arizona’s Medicaid agency, AHCCCS, terminated the licenses for several nursing supported group homes, resulting in six homes closing. That message was sent on Sept. 8.

AHCCCS is involved in the investigation due to impacted members and stated that it "works closely with the Department of Economic Security Division of Developmental Disabilities and other state partners to support access to safe, high-quality care and services."

The nurses say they accept the possibility that they may not get paid for the dozens of hours worked, instead hoping to land on their feet in hard times. When asked how she navigates through this, Oben shared her frustration.

"I honestly can't say because it's been tough, not just because I no longer have a full-time job right now. I was essentially terminated with that notice, but now I'm having to deal with money that maybe I could have helped to sustain me until I get another job. I'm a first-generation immigrant. I support people back home, my family back home. And this type of thing doesn't just cause you emotional stress, it causes you financial stress," Oben said.