Highlights
- An Arizona couple was sentenced to prison and ordered to pay $12 million in restitution for health care fraud.
- The scheme targeted AHCCCS, Arizona's Medicaid program, through fraudulent billing practices.
- The Department of Justice previously seized $100 million in assets from the couple, identified as King and Gehrke.
- Each defendant faced up to 20 years in prison, according to prior DOJ reporting.
An Arizona couple has been sentenced to prison and ordered to pay $12 million in restitution for a billing scheme targeting the Arizona Health Care Cost Containment System, the state's Medicaid program, according to a report by 12News.
The defendants, identified in prior coverage as King and Gehrke, had earlier pleaded guilty to a health care fraud scheme that the U.S. Department of Justice described as totaling $1.2 billion. A related 12News report noted the government had already seized $100 million in assets from the couple ahead of sentencing.
The DOJ previously reported that Gehrke instructed sales representatives to order wound grafts only in sizes 4x6 centimeters or larger, even when wounds were smaller, to maximize insurance reimbursements, a detail that illustrates the mechanics of the billing manipulation at the center of the case.
The sentencing adds to a pattern of large-scale Medicaid fraud prosecutions in Arizona. Attorney General Kris Mayes announced a separate behavioral health fraud sentence earlier this year, and a 12News report detailed a $425 million Medicare fraud conspiracy involving a Maricopa County CEO sentenced to 15 years in federal prison.
Full sentencing details, including the prison terms imposed on each defendant, are expected to be released by the DOJ.
Sources
Every factual claim in this article traces to one of the sources below. See how we work for the editorial process.
- 12News retrieved 02/06/2026 23:36
- 12News retrieved 02/06/2026 23:36
- justice.gov retrieved 02/06/2026 23:36
- azag.gov retrieved 02/06/2026 23:36
- 12News retrieved 02/06/2026 23:36
Authored by The Scottsdale Signal. Drafted by AI from primary-source material under our beat-specific editorial guides; reviewed by humans before publish under our five-gate process. Sources retrieved at 02/06/2026 23:36. Every claim traces to a source.
