Unlicensed sober living homes 'recycle' people out of luxury condos in Mesa, victim says
MESA, Ariz. - Across the Phoenix area, Native Americans and other vulnerable people battling addiction are being targeted in a sober living scheme, which is now being addressed by the state.
We're uncovering more about what’s happening at Canal on Baseline surrounding sober living facilities at the brand-new property of luxury condos.
Residents who live in the area of Canal on Baseline not only want answers, but solutions.
The city of Mesa says it's investigating alleged sober living home activity, and now, we've confirmed there’s a multi-agency investigation.
The property owner of Canal on Baseline admits that two unlicensed sober living facilities operated under his watch.
‘a protected class that is being abused …’
From a bird’s eye view, there’s a uniform look of white rooftops capping 90 contemporary-styled townhomes.
The property sits within a gated community at 6060 East Baseline Road in Mesa.
On June 6 of this year, residents from Canal on Baseline and neighbors near the community joined a packed town hall.
Residents in the area looked to city officials from Mesa and Gilbert, asking about the alleged sober living home activity spilling from the complex into their neighborhoods.
"The operations that are going on in these high-end luxury condos are not licensed but yet they say their hands are tied, they can’t do anything. And it’s a protected class that is being abused and brought in," a neighbor in the area said after the meeting.
"We do need to see action from the state level. The cities can only do so much," another neighbor said.
Mesa councilwoman Julie Spilsbury says Mesa has met with Arizona’s Attorney General Kris Mayes, contacted Governor Katie Hobbs and Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid agency and a key player in the issue.
"This is super complicated. There’s lots and lots of layers to this. There’s legal protections for sober living, there’s just so many layers and so it’s not a matter of just walking in tomorrow and shutting it down," she said.
Mesa councilwoman Julie Spilsbury
What is the scheme exactly?
The sober living scheme is simple.
Fake rehab centers recruit tribal members and other groups of vulnerable people.
They make sure victims are signed up with the American Indian Health Program via AHCCCS.
Using their IDs and personal information, unlicensed organizers have to go through registered providers to bill the state for services that are not actually given.
Government officials say AHCCCS has been defrauded for at least hundreds of millions of dollars.
READ MORE: Arizona's tribal members find unmarked graves in search for loved ones amid sober living crisis
‘Women, beer and drugs’
In our first report on Canal on Baseline, we showed a man being treated by medics. His name is Warshaw Suazo.
He says he stayed in a unit posing as a sober living home and was told to recruit.
"They told me, they implied, that I was supposed to be bringing more people from my reservation, if not, from people who are around me. Also, Native Americans as long as they have Medicaid and ID," Suazo said.
He came to the Valley from Gallup, New Mexico.
He says recruiting is incentivized.
Warshaw Suazo
"I was offered women, beer and drugs," Suazo said.
He says waiting on his AHCCCS membership to become official made him an asset, and gave him a place to live.
"I’m just told to stay in my room," he said when asked about how he spent his time.
Residents outside the complex claim to see empty liquor bottles left behind at the canal nearby.
"I just seen all kinds of people recycled, recycled through here," Suazo said. "This whole place is flooded with sober living."
'What's really going on?'
There are tenants who say they often see suspicious activity and became used to seeing first responders in the parking lot.
"William" is one of those tenants who wants to remain anonymous.
"I didn't know what a sober living was. And then I want to say, like the past couple of months, just police have been in and out the property, just has been like vandalized. It's just, it just hasn't really been the same since I’ve moved in," he said.
FOX 10 requested calls for service to Canal on Baseline from Mesa Police.
Since last November, Mesa Police have responded nearly 150 times. The leading call is for "subjects disturbing" (18), followed by "noise disturbance" (17), "agency assist" (14), and "family fight" (12).
William says he pays $2,700 in rent every month.
"But you're seeing these people smoke, drinking at the pool, nodding off in your, you know, your backyard. So, it's just like, I mean, are they really? Are they really helping these people, or like, what's, you know, like what's really going on?" he said.
Getting out of a lease can be costly, as many know.
"There's been many times where I just wanted to honestly just leave, but I'm just kind of just dealing with it," William said.
The man behind Canal on Baseline
FOX 10 reached out to Samir Sawhney, the owner of Canal on Baseline about these issues, again.
He says the city of Mesa and police acknowledge that the complex is not in violation of any codes and is within the laws and zoning requirements for leasing units.
His statement reads, in part:
"The Arizona Department of Health Services conducted an investigation into the units at the complex and found that two of them were operating as a sober living facility without the proper licensing. As a result, citations were issued, and management immediately requested the occupants to vacate the premises, and the subject leases were immediately terminated. I want to emphasize that the management was unaware of these units operating as a sober living facility."
Sawhney also claims there has been no police activity within the ten days prior to sending FOX 10 this statement on June 13.
But, he’s wrong.
From June 3 to 10, Mesa Police responded to the property nine times.
FOX 10 asked the Department of Health was asked to detail the citations that were issued and to comment on the inspection, but a spokesperson says he can’t due to the ongoing multi-agency investigation.
Since reporting on this case, we received a tip about The Hera, a 20-unit townhome complex in Phoenix near 32nd Street and Osborn Road.
We learned Sawhney also owns that property and the same developer that built Canal on Baseline also built The Hera.
The tipster believes shady sober living facilities are operated there, so we reached out to the city of Phoenix.
A spokeswoman says, "The city of Phoenix's Neighborhood Services Department has opened a case. The location will be inspected for violations of the Phoenix zoning ordinance. If a violation is found, a notice of ordinance violation will be issued to the owner and all responsible parties."
"The same developer is developing a property right down the street. As it stands right now, this could happen anywhere. These were luxury condos that were for sale and one owner went in and bought all of them," Mesa councilwoman Spilsbury said.
Read the city of Mesa's response from June 15, saying in part:
- DHS has agreed to investigate the property and they were on-site with Mesa Police on Thursday, June 8th.
- Mesa representatives participated in a webinar held by the Governor’s Office and AHCCCS on June 14th to discuss Sober Living Homes specifically and to receive direction on handling suspected unlicensed homes.
- The City of Mesa staff will be meeting with staff from the Governor’s Office, AHCCCS, and DHS next Thursday, June 22 to discuss 6060 E Baseline, update on recent events, and coordinate our response.
Read Sawhney's full response here:
Thank you for your continued interest in Canal on Baseline. I appreciate the opportunity to provide you with an update on the recent developments. The information below includes the details you requested, as well as additional clarifications:
I understand there have been recent developments, and I would like to provide you with an update. The Arizona Department of Health Services conducted an investigation into the units at the complex and found that two of them were operating as a sober living facility without the proper licensing. As a result, citations were issued, and management immediately requested the occupants to vacate the premises, and the subject leases were immediately terminated. I want to emphasize that the management was unaware of these units operating as a sober living facility.
It is important to note that the complex owners and management are solely landlords and have no ownership or operational interest in any of the facilities cited above or any similar facilities. Furthermore, the city and Mesa Police have acknowledged that the complex is not in violation of any codes and is well within the laws and zoning requirements for leasing out the units.
Additionally, I would like to clarify that the scenes of trash and empty alcohol bottles shown in the story were from random areas in Mesa and not specifically from the complex itself. The complex has been well-maintained, and there have been no recent police activities within its premises for the last 10 days.
We understand the concerns raised by the neighboring residents, and we want to assure them that immediate action was taken to address the violation found by the Arizona Department of Health Services. The two units operating as a sober living facility have already been vacated. As responsible property owners, we prioritize the safety and well-being of our residents and have reinforced our protocols to prevent such occurrences in the future.
I hope this information helps provide a clearer picture of the situation. If there are any further updates or significant developments, I will be sure to inform you accordingly.
At this time, we are unable to accommodate an interview. However, I believe the provided statement adequately addresses the concerns and provides necessary clarification on the recent developments. We appreciate your understanding.
–
If you know a victim in need of resources, the state has provided a hotline. Dial 2-1-1 and press 7.
Operation Rainbow Bridge also has a hotline and it can be reached at 1-855-HELP-ORB.
If you have any tips on possible fraud, you can report it by filling out the form at https://www.azahcccs.gov/Fraud/ReportFraud/onlineform.aspx