ARIZONA NEWS

Former CEO of Hacienda Healthcare pleads guilty to fraud

Jun 22, 2021, 6:20 AM

(Maricopa County Sheriff's Office Photo)...

(Maricopa County Sheriff's Office Photo)

(Maricopa County Sheriff's Office Photo)

PHOENIX — The former CEO of a Phoenix health care facility has pleaded guilty to two counts of felony fraud, according to state prosecutors.

William J. Timmons, who ran Hacienda Healthcare, is scheduled to be sentenced July 22.

The Arizona Attorney General’s Office said Monday in a press release that Timmons could be facing between three and 12 ½ years in prison on each count.

Timmons was CEO of Hacienda Healthcare from July 1989 to January 2019.

A state grand jury indicted Timmons and his chief financial officer, Joseph O’Malley, in August 2020.

The two were accused of being involved in what prosecutors said was an elaborate white-collar fraud scheme that bilked Arizona taxpayers out of millions of dollars.

According to the indictment, Timmons and O’Malley “misallocated” money from the state from 2013 until June 30, 2018, by manipulating costs to avoid repayments of state funds in favor of inflated salaries and bonuses.

As part of a plea agreement, prosecutors said Timmons has agreed to pay $500,000 to the Arizona Health Care Cost Containment System and $274,500 to the state attorney general’s anti-racketeering revolving fund.

O’Malley, who resigned in March 2019, is scheduled to stand trial in his case in March 2022.

The facility made headlines in January 2019, a few weeks after a patient who had been raped by a nurse gave birth.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Deion Alexander Garcia, 27, is accused of child sex crimes while working as a dental assistant in C...

Nick Borgia

Chandler dental assistant indicted for sexual abuse of child patients

A Maricopa County Grand Jury has indicted Deion Alexander Garcia for sexual abuse of young dental patients while providing x-ray exams.

38 minutes ago

Father convicted of first-degree murder in northern Arizona...

Associated Press

Arizona man convicted of first-degree murder in starvation death of 6-year-old son

A northern Arizona father was convicted of first-degree murder Thursday in the 2020 starvation death of his 6-year-old son.

1 hour ago

Brian Galvez and broken window...

Nick Borgia

Man arrested for allegedly throwing rocks through windows of Mesa businesses

A man was arrested for allegedly throwing rocks through the windows of eight Mesa businesses, police said.

2 hours ago

Arizona CD-3 primary debates: Recap of Democrats, Republicans...

Serena O'Sullivan

Republicans, Democrats running for CD-3 debate on economy, border, abortion before primary election

Did you miss the two Arizona CD-3 primary debates between Republicans and Democrats on May 22, 2024? This recap covers the important parts.

4 hours ago

U.S. Sen. Kyrsten Sinema of Arizona delivered a speech on the Senate floor regarding the failed bor...

KTAR.com

Arizona’s Kyrsten Sinema blasts ‘bickering’ Senate before border bill test vote fails

Arizona's Kyrsten Sinema expressed her frustration Thursday with the U.S. Senate's unwillingness to pass meaningful border legislation ahead of its failed test vote of a bill she helped negotiate.

4 hours ago

(Photo by Rebecca Noble/Getty Images)...

KTAR.com

Katie Hobbs believes Secure the Border Act would drive businesses out of Arizona

Democratic Gov. Katie Hobbs believes the Secure the Border Act would drive businesses out of Arizona if passed.

6 hours ago

Sponsored Articles

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

Day & Night Air Conditioning, Heating and Plumbing

Beat the heat, ensure your AC unit is summer-ready

With temperatures starting to rise across the Valley, now is a great time to be sure your AC unit is ready to withstand the sweltering summer heat.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

Former CEO of Hacienda Healthcare pleads guilty to fraud