KENTUCKY (WKYT) – The owner and CEO of an eastern Kentucky behavioral health and addiction treatment center company was indicted today in federal court.
Timmy G. Robinson Jr. faces one count of wire fraud and two counts of money laundering in a scheme to allegedly defraud two potential buyers of a multi-million dollar Employee Retention Credit offered to certain employers by the Internal Revenue Service, who paid workers qualified wages during and were affected by the COVID-19 pandemic.
According to court documents, Robinson’s company, Addiction Recovery Center, applied for two of the refundable tax credits in 2023 and 2025 totaling over $6 million.
Robinson agreed to sell ARC’s interest in the credits to one buyer in July and September 2025. The buyer wired ARC over $2.7 million in payment in July.
In October, Robinson allegedly told a broker that both credits were still for sale and concealed the transactions with the first buyer.
In November, Robinson agreed to sell the credits to another buyer, while allegedly still hiding the existence of the first sale. The second buyer later wired ARC over $4.7 million for the credits.
When ARC received the credits in December, he allegedly directed ARC staff not to transfer the funds to either buyer.
If convicted, Robinson could face a substantial prison sentence. Prosecutors are also seeking forfeiture of all proceeds tied to the fraud.
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