PHOENIX – Barbs between Arizona’s attorney general and a Republican lawmaker reveal an FBI investigation into a behavioral health provider.
The new details come as the fallout from a massive $2.8 billion Medicaid fraud scheme has apparently evolved. Internal emails provided by Attorney General Kris Mayes expose a familiar face to FOX 10 Investigates.
What we know:
A behavioral health provider on tribal land called “Sacred Circles of Healing and Wellness” is now the target of a criminal probe. But this isn’t the first go-around for the man who the attorney general’s office says is linked to this business. His former counseling facility and unlicensed treatment center were already investigated by the state’s Medicaid agency, the Department of Health Services, and the feds just three years ago.
His name is Denis Artiles. Since February 2023, AHCCCS suspended Artiles’ provider, NewFound Hope, over credible allegations of fraud – including excessive billing.
FOX 10 first uncovered how patients were consistently transported between a decommissioned Ramada hotel and Newfound Hope’s Tempe detox center, according to the Department of Health. State officials called the hotel operation an unlicensed outpatient treatment center. Financial records obtained from AHCCCS revealed Newfound Hope made nearly $13 million before being cut off.
After reaching a settlement with the state, Newfound Hope surrendered two licenses and by February 2024, dozens of predominantly Native American clients had to leave the former hotel. Two years later, Republican State Senator Carine Werner has announced that she has evidence of continued Medicaid fraud, she says she learned about through whistleblower complaints.
“I had a meeting with both the AG, the inspector general and AHCCCS director and there was documentation given and then the AG said they would be the conduit and provide it to the FBI,” Werner said during a press conference on May 18.
This statement was made just days after Werner blasted Attorney General Kris Mayes in a press release for failing to “secure aggressive prosecutions and asset seizures” necessary to stop repeat offenders. Mayes responded swiftly by calling the state senator a “liar,” showing this internal email from her special agent to Werner.
“She said she had received whistleblower complaints about potential fraud occurring. My team thanked her, took the information and immediately checked with the FBI. They already had an open investigation into the individuals and entities Ms. Werner had received the tip on,” Mayes said during a press conference on May 14.
In an email obtained by FOX 10, Special Agent Daniel Miller with the attorney general’s office specifically cites an LLC called Sacred Circles of Health & Wellness. He writes to Werner, “As we discussed, there are overlapping cases regarding all those involved – especially Denis Artiles.”
Despite redactions, the message confirms the FBI was investigating Artiles in February 2023, and reveals a new complaint referred for a criminal probe just this May. Because of those redactions, it is not exactly known what the feds are investigating, and Artiles has never been formally charged, but State Senator Werner sent a warning letter to the U.S. Attorney’s office.
She claims Artiles, who ran the now-suspended “Newfound Hope,” has popped back up with a new entity on tribal land. Werner alleges Native Americans are currently being recruited from the Hopi reservation, loaded into vans, and driven to a counseling facility in Tuba City, according to whistleblower sources.
“There are people that were bad actors before that realized they could find a native to be the front man and move operations to native land because there isn’t a license that’s needed there,” Werner said.
Dig deeper:
The attorney general special agent’s email also points to “new evidence,” naming a “C. Chatter” as an owner and operator. A check of the Arizona Corporation Commission, which officially lists the LLC as “Sacred Circles of Healing & Wellness,” shows Coleen Chatter as the CEO of the Tuba City provider on the Navajo Nation.
“And they promise that they’ll have a roof over their head, they’ll have food, clothing, hygiene, helping them get better…” Chatter said to FOX 10 in an interview done in 2023.
At the time, she was an advocate for vulnerable and missing Native Americans who sought help for addiction. She explained the ongoing sober living crisis.
“We get a phone call from a family saying, ‘My relative is missing, can you help us?’ We’ll do our research, and we’ll gather our paperwork, and we’ll go and look and locate that individual,” Chatter said.
Chatter worked with Reva Stewart, who started the initiative known as “Stolen People, Stolen Benefits” to find tribal members who could be victims of the sober living scheme.
“The last contact we had with each other was July of 2023 when she had sent us a message that she was stepping back from Stolen People, Stolen Benefits because of her health,” Stewart said.
Attempts were made to reach Chatter for a comment, but she did not respond. The attorney representing Artiles and Newfound Hope was also contacted. He had nothing to say about the FBI’s probe.
And while it is known federal agents are looking into this Tuba City facility, specific allegations remain unknown. As is standard practice, the FBI will neither confirm nor deny an ongoing investigation. But AHCCCS records obtained show “Sacred Circles of Healing & Wellness” has been paid $293,999.41 since its start date in December 2025.
What they’re saying:
A spokesperson with AHCCCS says they can’t comment on potential or ongoing investigations. But in response to how Artiles – the CEO of a suspended provider – has allegedly emerged with a new entity, AHCCCS released this statement.
“AHCCCS does not comment on potential or ongoing investigations. Questions regarding statements attributed to the Office of Attorney General Kris Mayes or the FBI should be directed to those respective agencies. AHCCCS conducts thorough investigations of potential provider fraud, waste, and abuse while adhering to all federal, state, and contractual requirements.
AHCCCS cannot discuss specific entities, individuals, or potential investigative activities. However, providers have an affirmative obligation to disclose owners and key leadership positions as a prerequisite to registration with AHCCCS as a participating provider. When AHCCCS identifies the existence of undisclosed personnel operating in positions that were required to have been disclosed, the agency will investigate and take appropriate action consistent with state and federal requirements.
Sacred Circles of Healing is enrolled as an AHCCCS behavioral health outpatient clinic and is operating on tribal land. Due to tribal sovereignty, the state is prohibited from requiring Arizona Department of Health Services licensure for tribal providers operating on tribal lands.
These providers operate under a distinct regulatory framework and must meet all applicable federal, tribal, and AHCCCS program requirements to participate in Medicaid and bill AHCCCS. To enroll, tribal facilities and practitioners complete the standard AHCCCS registration and credentialing process, which includes verification of qualifications, compliance with federal Medicaid rules, and adherence to AHCCCS policies and program integrity standards.
In place of state licensure, AHCCCS recognizes appropriate tribal or federal credentials, certifications, or other forms of authorization issued by a tribal authority or the Indian Health Service (IHS), where applicable. Once enrolled, these providers must meet the same billing, documentation, and quality standards as all AHCCCS providers. AHCCCS maintains oversight to ensure that all participating providers, regardless of location, deliver services consistent with Medicaid requirements.”
Due to tribal sovereignty, the state is prohibited from requiring a Department of Health license for tribal providers operating on tribal lands. In place of state licensing, AHCCCS recognizes tribal or federal credentials or other forms authorized by a tribal authority or the Indian Health Service.