Summary
The founder and owner of Addiction Recovery Care, LLC (ARC), Timmy G. Robinson, Jr., has been indicted by a federal grand jury on one count of wire fraud and two counts of money laundering. Prosecutors allege that Robinson arranged multiple sales involving the same Employee Retention Credit (ERC) assets, resulting in millions of dollars in advance payments from buyers. The case is being investigated by IRS Criminal Investigation and the FBI.
Allegations center on Employee Retention Credit transactions
Federal prosecutors allege that the case involves the sale of Employee Retention Credit assets linked to ARC’s payroll records from 2021. Employee Retention Credits, commonly known as ERCs, are tax credits created to help eligible businesses affected by the COVID-19 pandemic.
According to the indictment, in July 2025, Robinson caused ARC to enter into a sales agreement with a buyer. Under that agreement, the buyer paid approximately $2.7 million in advance for rights to an anticipated ERC refund based on the company’s first-quarter 2021 payroll information.
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The indictment further alleges that in September 2025, Robinson caused ARC to assign rights to another ERC claim, based on second-quarter 2021 payroll information, to the same buyer.
Prosecutors claim that despite those earlier transactions, ARC later entered into another agreement involving the same ERC assets.
According to court documents, in November 2025, Robinson allegedly caused ARC to sell the first-quarter and second-quarter 2021 ERC rights to a second buyer. Authorities claim that the buyer was told the assets were available for purchase and had not been previously sold or otherwise encumbered.
Federal prosecutors allege that those statements were false because the ERC rights had already been transferred through earlier agreements. Based on those representations, the second buyer allegedly paid ARC an advance payment of approximately $4.7 million on November 12, 2025.
The indictment states that the agreement was transmitted electronically through interstate communications, which prosecutors allege forms the basis of the wire fraud charge.
Money laundering charges and ongoing federal case
In addition to wire fraud, Robinson faces two money laundering charges. Prosecutors allege that after receiving funds from the transactions, he engaged in significant monetary transactions involving the proceeds.
The indictment further states that the Internal Revenue Service later issued the ERC payments to ARC in December 2025. According to prosecutors, Robinson directed ARC not to repay either buyer after the company received the ERC funds.
The indictment was announced by Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; Karen Wingerd, Special Agent in Charge of IRS Criminal Investigation’s Detroit Field Division; and Olivia Olson, Special Agent in Charge of the FBI Louisville Field Office.
The investigation was conducted jointly by IRS Criminal Investigation and the FBI. Assistant U.S. Attorney Paul McCaffrey is prosecuting the case on behalf of the United States.
Key allegations in the indictment
- ARC allegedly sold ERC rights tied to first-quarter 2021 payroll records.
- A buyer reportedly paid approximately $2.7 million in advance.
- Rights to another ERC claim were allegedly assigned to the same buyer.
- The same ERC assets were allegedly sold again to a second buyer.
- The second buyer reportedly paid approximately $4.7 million.
- Prosecutors allege the assets had already been transferred before the second sale.
- Two money laundering charges stem from alleged financial transactions involving the proceeds.
No court appearance date has been scheduled at this time.
Federal authorities noted that an indictment is only an accusation. Robinson is presumed innocent unless and until proven guilty in court beyond a reasonable doubt.
If convicted, Robinson faces a maximum sentence of up to 20 years in prison on the wire fraud charge and up to 10 years in prison on each of the money laundering charges.