'Dr. Ed': Convicted felon, ex-doctor linked to Arizona's sober living scheme
PHOENIX - A convicted felon and ex-doctor is linked to a behavioral health provider now suspended by Arizona's Medicaid system.
FOX 10 extensively reported on the sober living scandal that Arizona leaders say cost the state an estimated $2.5 billion by preying on vulnerable people struggling with addiction.
The crisis led to a massive crackdown on Medicaid fraud in 2023. It left many people on the streets in Arizona after sober living homes and group homes impacted by suspensions were shut down.
Who is ‘Dr. Ed?’
Achievers Dynamic Systems International LLC used to be an outpatient treatment center, licensed by the state as a behavior health facility until April of this year.
It was located at a business plaza in north Phoenix on Cave Creek Road.
Back in July, the Arizona Health Care Cost Containment System (AHCCCS) suspended payments due to credible allegations of fraud.
The notice of suspension accuses Achievers of excessive billing, suspicious billing patterns and failing to comply with AHCCCS policy, including incomplete, inconsistent, unsigned and undated patient assessments.
What also stands out in this suspension is the employment of Edward Sayegh.
Officials say Sayegh is not licensed as a medical doctor anymore, but during a site visit by the AHCCCS team in September 2023, Sayegh introduced himself as "Dr. Ed."
AHCCCS officials say he’s excluded from participating in Medicaid and Medicare due to his criminal history of fraud.
The Arizona Attorney General and the DEA investigated Sayegh and his practice, Arizona Family Medicine, for more than two years.
He was arrested in 2014 and by 2015, Sayegh pleaded guilty to multiple felony charges including fraudulent schemes, conspiracy, and administration of a dangerous drug or a narcotic drug.
Sayegh billed AHCCCS for fake medical services, had some patients share medications with him and prescribed pills to drug dealers in exchange for cocaine, prostitutes and alcohol.
He forged patient medical records to justify the false billing and illegal prescriptions. Not only did he bill AHCCCS, but he targeted private insurance companies as well.
A Maricopa County Judge sentenced Sayegh to four years in prison plus five years of probation. Sayegh was ordered to surrender his medical license.
FOX 10 went to Sayegh's home to get his side of things. A relative of Sayegh put him on the phone.
He said he was only a clinic administrator for Achievers, working there from May to November 2023. The AHCCCS suspension letter says staff and members at achievers called him "Dr. Ed."
He says his intention was to help people but did not want to be interviewed on camera.
‘These people will tell you a lie to get you in there’
Reva Stewart advocates for Native Americans who have been victimized by the sober living scandal who are now displaced because of shut-down facilities and group homes.
During the pandemic, at the height of the scam, fraudsters enrolled AHCCCS members into the American Indian Health Program whether they were tribal members or not, promising treatment, and ultimately, billing the state.
"This is still happening. These people will tell you a lie to get you in there, regardless of if you’re not on the American Indian Health Plan anymore," Stewart said.
A month after AHCCCS spoke to Sayegh, the Arizona Dept. of Health Services (DHS) inspected Achievers in October 2023.
DHS issued nine citations, including a violation for failing to oversee four behavioral health technicians at least once every two weeks. Officials called it a deficient practice, posing a potential risk for staff and patients.
FOX 10 tried reaching the owner of Achievers, but her phone number was disconnected.
Another Achievers facility in Glendale was suspended by AHCCCS as well for similar allegations of fraud.
FOX 10 reached out to the Arizona Medical Board about Sayegh’s run-in with AHCCCS. The board says they were not made aware of what was going on until FOX 10 notified them.