Lexington, KY – Timmy G. Robinson, Jr., 50, the founder and owner of Addiction Recovery Care, LLC (ARC), has been indicted on one count of wire fraud and two counts of money laundering. The charges stem from an alleged scheme involving the fraudulent sale of Employee Retention Credits (ERCs) to multiple buyers.
According to the indictment, Robinson allegedly caused ARC to enter a sales agreement in July 2025, receiving a $2.7 million advance for the company's rights to an anticipated IRS tax refund, specifically the first quarter 2021 ERC. In September 2025, ARC assigned rights to a second quarter 2021 ERC to the same buyer. However, in November 2025, Robinson allegedly sold these identical ERCs to a second buyer for a $4.7 million advance payment, falsely representing their availability and that they had not been previously sold.
This conduct is alleged to constitute wire fraud, with Robinson then engaging in significant monetary transactions using these proceeds, which are alleged to be money laundering. When the IRS issued the ERC payments in December 2025, Robinson reportedly directed ARC not to repay either buyer. The investigation was conducted by IRS-Criminal Investigations and the FBI, with Assistant U.S. Attorney Paul McCaffrey prosecuting the case. Robinson faces up to 20 years for wire fraud and 10 years for each money laundering charge, though a court date is not yet scheduled. He is presumed innocent until proven guilty.