Author: Cory Santos

Holding on to $89,000 in debt can be overwhelming. And you might feel like you’re dealing with an impossible financial situation.

Your 401(k) might seem like the only lifeline available, but to be crystal clear: tapping into retirement savings should be your absolute last resort.

When you’re drowning in debt at any age, you’re in a particularly vulnerable position. But at 52 it can seem calamitous.

And with potentially 10-15 years left until retirement, you’re in the critical accumulation phase where your retirement savings should be growing substantially.

That combination of high-interest credit card debt and the temptation to raid retirement funds creates a perfect storm of financial issues that requires some immediate action.

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What happens when you tap into your 401(k)

Dipping into your 401(k) might sound great. After all, it’s your money, just sitting there; why not cash in? If you’re 5-7 years from retirement with high-interest debt, the math sometimes favors taking a one-time withdrawal to clear that debt, especially if your debt interest rate significantly exceeds your 401(k)’s growth rate.

But you are likely more than a decade from your retirement, so it’s almost impossible to justify tapping into the savings right now. That’s because using your 401(k) to address debt comes with serious consequences that can severely derail your financial security in retirement.

Loans vs. hardship withdrawals

You have two main options for accessing your 401(k) funds before retirement:

1. 401(k) loans: You can typically borrow up to 50% of your vested account balance or $50,000, whichever is less. You’ll need to repay this with interest (usually prime rate plus 1-2%) within five years.

2. Hardship withdrawals: If your plan allows, you can withdraw funds for "immediate and heavy financial need." Credit card debt typically doesn’t qualify unless you’re facing eviction or foreclosure.

What’s the worst that could happen? A retirement disaster

It’s easy enough to state it plainly, but why should you avoid dipping into your 401(k)? Here’s your worst-case scenario:

• Immediate tax hit: A withdrawal (not a loan) triggers income taxes plus a 10% early withdrawal penalty if you’re under 59 ½ years old. On a $40,000 withdrawal, you could lose $14,000 or more to taxes and penalties.
• Devastating opportunity cost: Every $10,000 withdrawn at age 52 could cost you $21,500 in retirement funds by age 67 (assuming a 5% annual return).
• Loan default risks: If you take a loan and leave your job for any reason, the entire balance typically becomes due within 60-90 days. Failure to repay converts it to a distribution, triggering taxes and penalties.
• Bankruptcy protection lost: 401(k) assets are generally protected in bankruptcy, but once withdrawn, that protection disappears.

It’s recommended to avoid 401(k) withdrawals unless you’re facing an imminent threat to your living situation, like a foreclosure or eviction. The long-term consequences of tapping-in are just too extreme, especially at your age when any potential recovery time is limited.

Better alternatives to tackle your debt crisis

Before tapping retirement your funds, consider more sustainable approaches:

1. Balance transfer credit cards

For those with reasonably good credit despite high balances, a balance transfer card can provide breathing room with 0% interest for 12-21 months.

Let’s run the numbers on a theoretical scenario:

If you transferred $25,000 of your existing credit card debt to a card with an 18-month 0% APR offer:

One-time balance transfer fee: $25,000 × 3% = $750

Monthly payment needed to pay off in 18 months: $1,430

Total interest saved: Approximately $8,000 (compared to a 24% APR card)

This wouldn’t solve all your financial problems. However, it would give you the breathing space to continue working on your debt repayment plan or switching to another option.

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2. Debt consolidation loan

A debt consolidation loan could combine your high-interest debts into a single, lower-interest payment. With fair credit, you might qualify for rates between 10-15% — significantly lower than credit card rates.

Benefits of personal or consolidation loans include:

Fixed payment schedule providing a clear debt-free date Potential interest savings of thousands over the life of the loan Improved cash flow with one manageable payment

3. Credit counseling and debt management plans

A nonprofit credit counseling agency can negotiate with creditors on your behalf, potentially reducing interest rates to as low as 8-11% and waiving fees. A debt management plan would:

• Consolidate your payments into one monthly amount
• Provide a structured 3-5 year repayment timeline
• Offer professional financial counselling support throughout the process

4. Bankruptcy as a strategic option

At 52 years old with $89,000 in debt, bankruptcy might actually be a more financially sound decision than raiding your retirement funds. Bankruptcy is often a last resort — and often seen as a personal failing — but it’s a legal financial tool designed specifically for situations like yours.

The truth is that bankruptcy, while damaging to your credit for 7-10 years, protects your retirement assets and gives you a chance at a fresh start. That said, filing for bankruptcy protection is a major decision and it’s recommended you consult with a bankruptcy attorney to understand if it’s right for your individual situation.

Strategic action plan to recover from your financial crisis

Based on everything covered, here’s a suggested plan of action, starting today:

1. Immediate step (next 7 days): Contact a nonprofit credit counseling agency for a free consultation to better understand all your options.

2. Short-term (next 30 days): Create a crisis budget that eliminates all non-essential spending. Every dollar you can save helps accelerate your debt payoff.

3. Medium-term (next 90 days): Based on the credit counseling assessment, commit to either a debt repayment plan, a debt consolidation plan, or filing for bankruptcy.

4. Long-term (next 12-24 months): Once your debt is under control, increase retirement contributions to make up for lost time. Delaying retirement by 2-3 years might help as well (as terrifying as that sounds).

Treat your retirement funds as absolutely untouchable except in life-threatening emergencies. The alternatives may be challenging, but they preserve your long-term financial security while still helping to address your immediate financial woes.

Remember: This debt crisis is temporary, but retirement insecurity would last the rest of your life — a time you could be enjoying your sunset years.Take a step back, think and make a decision today that your future self will thank you for.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Living in a mobile home park should provide affordable housing, not toxic mold and sewage backups — but for many Florida residents, that’s exactly what they’re getting.

"The floor is coming up. Mold is terrible. My doctor told me to move," said one Jacksonville resident in an interview with News4Jax. But with a household income under $2,000 monthly and Florida’s median rent hitting $1,555, this resident has nowhere to go.

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"I can’t even begin to tell you what is wrong with this house, but there’s no overhang on this trailer,” said the resident, who requested anonymity as she fears her landlord may raise her rent for speaking out. “When it rains, it rains in the doors. It comes through the windows. Mold is on the walls. You have to keep washing the walls and bleach inside."

Now, a troubling new report reveals how corporate owners may be systematically neglecting these communities while hiking rents — and warns of what potential mobile home park residents need to know before considering this increasingly risky housing option.

The health-related costs of “affordable” housing

The study by Health in Partnership and Manufactured Housing Action paints a troubling picture of how corporate mobile home park owners are transforming once-affordable communities into health hazards.

The health concerns documented in the study include:

• Contaminated water causing illness and chronic health problems.
• Failing sewage systems creating unsanitary conditions.
• Accumulated debris attracting pests and creating safety hazards.
• Crumbling infrastructure leading to dangerous living environments.
• Extensive mold triggering respiratory problems.

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The affordable housing trap

What makes this situation particularly troubling is the apparent lack of alternatives for mobile home park residents. According to research from the University of Florida, the median rent for housing seekers in the state was $1,555 as of July 2024, nearly 20% higher than the national average of $1,302 in 2024.

More alarmingly, Florida has only 26 affordable rental units available for every 100 households with incomes lower than 30% of the area’s median income. This shortage of affordable housing creates a desperate situation where lower-income residents sometimes have no choice but to endure hazardous living conditions rather than face homelessness.

Mobile home parks often represent one of the last options for stable, lower-cost living in Florida, but now some residents are facing predatory fees that are leading them to financial ruin.

The same Jacksonville resident mentioned above also noted that her rent has steadily increased from the initial $800 agreement. "Well, now every time I turn around, there’s more than that," she said, describing additional "junk fees" that keep appearing on her bill. And these mysterious charges affect "everybody in this neighborhood.”

Another mobile home park resident, identified only as Gerard, pays $700 monthly just to rent the lot where his mobile home sits — nearly as much as those who rent both the trailer and the land.

"I don’t think it should be near that high, the problems we’re having out here are terrible," Gerard shared with News4Jax. "700 plus dollars to live here, and I find that a lot of money just to park a trailer. And you pay your own electric, your own water. There’s no benefit of being here other than having your trailer parked."

Florida’s Mobile Home Act coming up short for residents

Florida’s Statute 723, known as the "Florida Mobile Home Act," provides some protections for mobile home owners who rent lots in parks with 10 or more spaces. These protections include:

• Required disclosures of fees, rules and regulations before someone moves in.
• Limitations on evictions to specific grounds such as non-payment, rules violations or change in land use.
• Rights regarding improvements to mobile homes.
• Provisions for forming homeowners’ associations.
• Notice requirements for lot rental increases or changes in rules.

But based on Health in Partnership’s report, these protections don’t seem to do enough for mobile home park residents.

Report issues policy recommendations

The Health in Partnership’s “Home Sick” report offers the following policy recommendations based on its findings:

1. Strengthen housing standards through licensing, inspections and accountability mechanisms.
2. Protect residents with rent regulations, good-cause eviction policies and anti-retaliation measures.
3. Promote community-friendly ownership with funding and transition policies.
4. Address corporate speculation via zoning regulations, portfolio caps, divestment and taxation.

Practical tips to protect mobile home residents

So, what can those who may be considering moving into manufactured housing do to protect themselves? If you’re considering manufactured housing as an affordable option in Florida (or anywhere else for that matter), here are some important considerations:

1. Understand the park’s ownership structure. In most mobile home parks, you own the home but rent the land, creating a unique legal relationship.
2. Research the park owner. Corporate-owned parks may have different priorities than locally owned communities.
3. Inspect the unit thoroughly before buying or renting. Look for signs of water damage, mold, structural issues and infrastructure problems.
4. Review all fees and rules of the unit and park. Get a clear picture of lot rent, utility charges and any other fees before committing.
5. Check for a homeowners’ association (HOA). Active HOAs can provide collective bargaining power with park owners.
6. Understand your rights. Familiarize yourself with the Florida Mobile Home Act to know your legal protections.
7. Verify insurance options. Mobile homes often require specialized insurance that can be more expensive.
8. Have an exit strategy. Be aware that selling a mobile home in a park can be more challenging than selling a traditional home.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

If you’ve ever sweated through a Midwestern summer without decent cooling, you know it’s more than just uncomfortable — it can be downright dangerous.

For folks at Countryside Village trailer park in South Bend, Indiana, this summer’s heat comes with an added challenge: remove your window A/C units or risk losing your home.

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"They won’t tell you why they want us to take them out," one resident shared with WNDU. "We’ve got elderly people that live in here, sick people that live in here, and they could die."

The situation has residents worried, with Indiana lawmakers scrambling to find legal remedies for those facing the potentially dangerous summer heat.

Cooling crackdown comes at the worst time

Since September, 2024, Countryside Village’s management has been crystal clear. "If you have window A/C units, you must remove them,” management stated in a letter sent to residents, according to WNDU. “After three violations, evictions can and will be filed."

What makes this situation particularly tricky is that while many residents actually own their trailers, they pay lot rent fees to YES Communities, which owns Countryside Village as well as hundreds of other trailer parks throughout the country. YES Communities’s guidelines, which all residents must sign with their lease, explicitly state that window A/C units are not permitted.

With South Bend summer highs historically averaging 83ºF in the month of July, residents could now face potentially hazardous indoor temperatures.

“With my medical issues, no it is not safe,” said another Countryside Village resident. “I had a doctor’s appointment yesterday, and my doctor physically wrote me a doctor’s note that I have to have an A/C unit in my trailer.”

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Residents bemoan unfair management rules

Stephen Dempsey, who lives in Countryside Village, is one of the fortunate residents with central air, but he worries about his neighbors who aren’t as lucky.

"I think they’re putting a lot of pressure on people unfairly, especially a lot of the longtime residents who are on fixed incomes,” said Dempsey. “They can’t afford to just go buy a whole brand-new air conditioner unit."

And he’s not wrong — portable air conditioners (which are the most likely alternative to window A/C units) typically cost between $300 and $700 at major retailers like Home Depot and Lowes, with additional costs for proper venting and installation. For those on Social Security or receiving disability benefits, that’s no small expense.

Dempsey also knows the dangers that a lack of air conditioning can have on elderly and infirm residents. "Especially for an older resident, anybody with any kind of health issues. It can be dangerous," said Dempsey.

And he’s not exaggerating. According to the Centers for Disease Control, heat-related illnesses cause more than 700 deaths annually in the United States, with elderly people and those with chronic health conditions at the highest risk.

YES Communities has not issued a statement on the situation at Countryside Village, despite WNDU’s multiple attempts to learn why it just started enforcing this long-standing ban. However, the situation at Countryside Village has stirred local politicians to step up for the trailer park residents.

State Senator David Niezgodski has formally requested Attorney General Todd Rokita to investigate, calling the situation "not just a housing issue; it’s a public health emergency," according to the Indiana Senate Democrats website.

What to do if you’re a renter in a similar situation

If you’re facing something similar to the situation in Countryside Village, there are several steps you can take before removing A/C units that could be essential for your health and wellbeing:

1. Check your lease for the exact policy details on window A/C units.
2. Get medical documentation if heat affects your health and window A/C units are not permitted.
3. Request accommodation in writing with management for health conditions that require A/C in your home.
4. Contact local legal aid for assistance if management isn’t cooperative.
5. Contact your local news outlet in the hopes of drawing attention to your situation, as the residents of Countryside Village had done.
6. Report potential violations to your state attorney general.

The Fair Housing Act protects individuals with disabilities, and extreme heat sensitivity related to certain medical conditions may qualify for reasonable accommodations.

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• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

After spending years saving money in the hopes of starting a family, Russell Leahy and his wife are now forced to live paycheck to paycheck.

Leahy, a 28-year-old teacher from Fort Worth, Texas, recently lost $32,000 to scammers who tricked him into revealing sensitive financial information.

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"It was my entire life savings," Leahy told WFAA. "I had literally never felt like the wind had been taken out of my sails before. I’d never really felt like I was going to pass out before, but it really felt like the end of the world for me."

Leahy was reportedly contacted by scammers who claimed to be representatives of Chase Bank. The supposed bank reps called to inform Leahy that his account had been compromised and that he needed to protect his finances by moving the cash into a secure account. All it took were a few text messages and some counterfeit banking information in order to appear genuine.

"I couldn’t even believe how sophisticated it was," Leahy told WFAA.

Now, the newlywed is trying to warn people about the scam that cost him everything in the hopes of preventing others from falling for the same scheme.

Fraud vs. a scam

Unfortunately for Leahy, the situation went from bad to worse when he contacted Chase Bank to report the incident. According to WFAA, the bank told Leahy that his account isn’t covered by fraud protection, arguing that Leahy was the victim of a scam and not financial fraud.

In making this distinction, Chase Bank returned just over $2,000 to Leahy’s account, which is merely a fraction of his total loss. When WFAA contacted Chase Bank for comment, the bank offered clarification on the distinction between fraud and a scam.

"Fraud on a bank account involves someone illegally accessing someone else’s account and making withdrawals, transfers, or purchases without the account holder’s permission," the bank stated in its emailed reply.

A scam, on the other hand, is "a deceptive scheme or trick used to cheat someone out of their money or other valuable assets,” which is what happened to Leahy.

Chase Bank’s response likely isn’t what Leahy wanted to hear, but that hasn’t stopped him from sharing his story in order to prevent others from making the same mistakes.

"I’d rather I be the sacrificial lamb for the rest of these people and maybe save other people’s money from being stolen," he said. "I’m really hoping to look ahead and move on with my life and not have to start over from scratch."

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How to avoid falling for similar scams

Unfortunately, Leahy’s heartbreaking story is not unique. The "phishing" scam, which is what Leahy fell for, is one of the most common scams in today’s digital world.

Phishing works by tricking a victim into revealing sensitive information over the phone, by email or by text message. Email used to be the most popular method for conducting phishing scams, but scammers have since expanded their practice to include phone calls, texts and social media. Phishing conducted over the phone is also known as "vishing."

While it’s difficult to pinpoint just how many people are victimized by phishing scams every year, 323,972 internet users throughout the world reported to authorities that they had fallen for a phishing scam in 2021, according to AAG IT Services.

To avoid falling for scams such as this, it’s imperative for people to be informed and alert in order to spot potential threats. Here are some practical steps you can take to protect yourself from becoming a victim:

1. Don’t rely on your caller ID, as scammers may spoof the phone number of your bank or another institution that you’re affiliated with in order to gain your trust.
2. Never share your account information with anyone who may request it. Your bank will never call or email you asking for this information.
3. Protect your accounts with multi-factor authentication. If a scammer were to gain access to your username and password, multi-factor authentication would make it tougher for the scammer to log into your account.
4. Ignore transaction requests through calls, texts or emails that you didn’t initiate yourself.
5. When in doubt, call your bank — or whatever institution the potential scammers may claim to represent — directly in order to verify any concerns that were shared with you.

What to read next

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Loretta Byers had no concerns with re-upping her lease at her Las Vegas apartment — that is until she was hit with an unexpected $900 annual surcharge by her property management company.

Byers is just one of many residents at two Vegas apartment complexes where junk fees — or more specifically “tech package fees” — have been added to the cost of rent without consultation. Worse, management is forcing residents to sign addendums cementing the new fees — even though they weren’t part of the original lease agreements.

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

Local authorities are now hoping to clamp down on these junk fees, seeking to help vulnerable citizens with their fight against corporate greed.

"More money. That’s what I believe,” Byers shared with KTNV Las Vegas when discussing the motives behind the new fees. “I really think it’s the greenbacks."

Vegas tenants hit with surprise internet fees

"No!" That was Byers’ emphatic response when KTNV Las Vegas reporter Darcy Spears asked Byers if she needed or wanted the new internet service her landlord was attempting to force on her.

Byers recently learned she would be charged an additional $75 monthly for Cox internet service. This came as a shock since she and her husband renewed their lease in February, 2025 — one that explicitly stated the "internet to your dwelling will be paid by you… directly to the utility service provider."

But despite this clear language in her contract, Byers received a letter dated April 29, 2025, informing her that the complex was changing terms for all tenants by adding this tech fee on top of current rent. The letter stated the fee would become part of her "standard lease obligations" and would require signing a lease addendum agreeing to these new terms.

"It’s being forced," said Byers. "Take it, or leave. And nobody wants to break their lease on purpose. I know I’m not going to. But I don’t want to feel that I’m going to be forced to do something because they want more money coming in."

But Intrigue Apartments, where Byers and her husband live, isn’t the only Vegas complex implementing this strategy. Residents at the Tides on Twain apartment complex also received similar notifications about a new mandatory $65 monthly internet fee for Cox’s service.

One Tides on Twain resident, who uses Cox’s ConnectAssist program for low-income households, currently pays just $30 monthly for internet. Under the new mandatory plan, her costs would more than double.

Like with Intrigue Apartments, the new changes at Tides on Twain were to come into effect on June 1.

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Management companies begin to backpedal

When confronted by KTNV’s 13 Investigates team, both Intrigue Apartments and Tides on Twain’s management companies quickly changed their tune about the surprise internet fees.

According to the management companies, their original notices contained significant errors in stating that the new internet charges would apply to all current residents starting June 1. Advanced Management Group, which oversees Intrigue Apartments, claimed it never intended to force existing residents with active leases to pay the new $75 monthly fee. Similarly, FPI Management insisted that its $65 fee announcement for tenants at Tides on Twain also contained errors.

Both companies have since backpedaled, stating the internet program was only meant to affect residents upon lease renewal or new tenants moving in.

Local authorities hoping to curb junk fees

With this story top of mind, Nevada politicians are looking to pass legislation designed to protect local residents from junk fees.

"I believe it’s predatory. I also believe it’s deceptive," Nevada Assemblymember Venicia Considine told KTNV Las Vegas. "The apartment complex is just telling all their residents it’s coming because there’s no law to stop it."

Considine is one of the backers of Assembly Bill 121, a recent measure that has already cleared both houses of the Nevada legislature and is awaiting signing by governor Joe Lombardo. AB 121 seeks to outlaw surprise charges and junk fees in rental contracts while also requiring more transparency to tenants. The bill mandates that rent be listed as one comprehensive number that includes all mandatory fees.

"If [something isn’t done], we are really sending a message that we are allowing corporations and hedge funds and private equities to come in here and take money from people deceptively. And I just don’t think that as a state, we want to be known for that," said Considine.

How renters can protect themselves from junk fees

While AB 121 seeks to address the issue of junk fees, it’s not as if Nevada residents have no protections from these predatory practices.

The biggest issue, it seems, isn’t existing legal protections for consumers, but rather that many tenants don’t understand their rights or feel powerless to enforce them, especially when faced with legal threats and complex lease documents with multiple addendums.

If you’re a tenant concerned about surprise fees, here are a few actionable steps you can take to protect yourself:

1. Document everything: Keep copies of all lease agreements, communications with management and payment records.
2. Carefully review your lease agreement: Before signing, request time to review the entire document, including all addendums. Note exactly what services are included in rent and which will be billed separately. You can also request a written, itemized list of all monthly charges.
3. Know your rights regarding changes: Landlords generally cannot change lease terms during the lease period unless the lease specifically allows for it or you agree to the changes. Nevada follows the principle that lease terms, once signed, are binding on both parties. Unilateral changes to existing lease agreements without tenant consent are generally not permitted.
4. Don’t sign addendums under pressure: If presented with a lease addendum, take time to review it. You are not obligated to sign immediately, so take your time and consider enlisting the help of an attorney so that you understand everything.
5. File a complaint: Report deceptive practices to your state’s Attorney General’s Bureau of Consumer Protection and the County Commissioner’s office.
6. Strength in numbers: Connect with neighbors facing similar issues. Collective action can be more effective than individual complaints.

As the battle against junk fees continues in Nevada, the experiences at Intrigue Apartments and Tides on Twain highlight a crucial reality: landlords often back down from illegal fee hikes when tenants stand their ground.

While Assembly Bill 121 represents a promising step toward protecting renters, your best defense is still vigilance and knowledge of your existing rights.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Medicaid fraud harms far more than just the patients bilked out of that taxpayer-funded aid.

Just ask Arizona Attorney General Kris Mayes, whose office has been conducting an investigation into a sober-living homes scandal that could reportedly cost the state billions of dollars.

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“This [sober-living homes scandal] is something that was allowed to fester for way too long, and far too many people were hurt by it," Mayes shared with Fox 10 Phoenix. Each stolen dollar creates shortfalls in an already strained Medicaid system, adding to existing pressures from rising health care costs and growing demand.

As part of the investigation, Mayes’s office reportedly uncovered what it’s calling one of the largest fraud cases connected to the ongoing sober-living scandal. The total damage? A staggering $60 million in potentially fraudulent billings that sent cash to a behavioral health business, a church catering to African migrants, and even the nation of Rwanda.

At the center of this financial tornado stands Theodore Mucuranyana, a Phoenix pastor whose Hope Of Life International Church is now facing 10 felony counts of money laundering. And as this case makes its way through the courts, it serves as a stark reminder that these frauds directly impact all Americans.

When Medicaid money takes an unexpected journey

A Phoenix-based company, Happy House Behavioral Health, is accused of billing Arizona’s Medicaid system for $60 million worth of substance abuse and mental health treatment services that were either partially provided or — in many cases — not provided at all.

Just how brazen was the alleged fraud? Among the felony counts, Happy House is charged with billing the state for clients who were either incarcerated, hospitalized or even worse — dead.

According to the indictment, Happy House’s owners — Desire Rusingizwa and Fabrice Mvuyekure — each received checks from the business for $2.9 million. At the same time, the company allegedly paid a whopping $5 million to Hope of Life International Church, which later wired $2 million of that money to an "unnamed entity" in Rwanda, 12News reports.

And that church connection runs even deeper. Happy House also leases a building on church grounds from Hope of Life, creating a cozy financial relationship that prosecutors now claim was part of an elaborate money laundering operation.

While the 22 defendants entered not guilty pleas in Maricopa County Superior Court, one specific detail emerged: according to an attorney for two defendants, most — if not all — of the defendants come from Phoenix’s African migrant community.

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Attorneys push back against charges

As you might expect, the defendants’ attorneys have objected to charges and allegations levied against their clients. The pastor’s attorney, John Kolsrud, told 12News that the AG’s office was attempting to "deflect blame" for its own regulatory failures.

"Just because he rented his property out, he’s now being indicted on four different counts of fraud and abuse when he actually had nothing to do with this case," Kolsrud said of his client.

Attorney Ulises Ferragut, who represents a couple of service providers charged with racketeering, claimed his clients were unaware they were breaking the law.

"It seems to be a community of folks that were involved," he told 12News. "From what I’ve seen, a lot of them didn’t even realize that what they were doing was a crime."

A $2 billion problem

As was laid out above, this case involving Hope Of Life International Church and Happy House Behavioral Health is just the tip of a very expensive iceberg. The ongoing sober-living homes scandal that Mayes’s office is investigating has reportedly bilked Arizona taxpayers out of more than $2 billion to date.

"This is about a government failure,” Mayes shared with Fox 10 Phoenix. “This is going to take years to fix. It could take up to a decade to fix this.”

There is, however, some good news, as Mayes’s office has reportedly clawed back nearly $150 million in cash and assets during its investigation. But that’s still just pennies on the dollar compared to the estimated $2 billion allegedly defrauded by phony treatment programs.

As mentioned above, this level of fraud could directly affect all Americans throughout the country.

“Don’t be fooled into thinking that health care fraud is a victimless crime,” the National Health Care Anti-Fraud Association states on its website. “Health care fraud inevitably translates into higher premiums and out-of-pocket expenses for consumers, as well as reduced benefits or coverage.

“For many Americans, the increased expense resulting from fraud could mean the difference between making health insurance a reality or not.”

What to read next

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The Dervis family’s vacation to the Dominican Republic was supposed to be a celebration, but things took a scary turn when an emergency trip to the hospital left two of them stranded in the Caribbean.

The family joined about 30 people from the Johnsburg, Illinois area on a trip to celebrate their children’s graduation from high school when Greg Dervis, the family patriarch, was rushed to the hospital with a brain clot that required emergency surgery.

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

"He needed to go to the ICU, but the hospital wouldn’t put him in ICU until I gave them $10,000," Greg’s wife, Bonnie, shared with CBS News.

Now, Greg and Bonnie are stranded in the Dominican Republic, staring at a mountain of debt as they wait for Greg to be cleared for a flight back to the U.S.

‘Twenty-five grand total I’ve done so far’

As the Dervises learned at the hospital, Greg’s diagnosis was quite a serious matter.

"They had to remove the whole blood clot and part of his skull to reduce the swelling," said Bonnie, who later realized that their travel insurance does not cover overseas medical treatments, including Greg’s surgery.

"I needed $15,000 just to give them to do the brain surgery. Twenty-five grand total I’ve done so far," said Bonnie, adding up the cost of Greg’s admission to ICU along with the surgery.

Greg received the surgery and was released from the ICU. He’s reportedly talking and recognizes Bonnie, but due to the swelling from the blood clot, Greg is not medically cleared to fly on a commercial flight for at least six weeks. And while their son, Cole, has returned to the U.S., Bonnie and Greg are now stranded in the Dominican Republic until the latter is cleared for a flight home.

"It’s really hard on Cole because he feels bad,” said Bonnie. “He doesn’t know what to do either… and then he’s worried about me, because I’m alone in a different country all by myself."

With the Dervises in a tough situation, friends and family started a GoFundMe campaign to help cover the family’s mounting medical bills and living expenses in the Dominican Republic. As of July 16, the fundraiser had netted more than $33,000, with the goal of raising $100,000 for the Dervis family.

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Why travel insurance is worth the cost

According to a 2023 survey from Business Insider, only 38% of American travelers purchased travel insurance, while 14% said they purchased insurance but were not sure which kind.

Of the 62% of travelers that didn’t purchase travel insurance, 35% said they chose not to do so because they had traveled before and didn’t think they needed it. But as the Dervis family learned the hard way, medical emergencies can pop up at any time during a vacation.

Even travelers who do purchase insurance often don’t read the fine print in order to completely understand their coverage, which is what may have happened with Bonnie and Greg.

American travelers should also be aware of the fact that medical coverage standards and procedures abroad may differ significantly from what we’re used to in the U.S. Additionally, medical costs can vary significantly, which is something the Dervises found out firsthand.

According to Expat Financial, an online resource for Americans living abroad, healthcare in the Dominican Republic is expensive, particularly in tourist areas such as Sosua and Punta Cana, where the Dervis family was staying.

Travel insurance with medical evacuation coverage typically costs between 5% and 10% of your total trip cost, according to industry data. For a $5,000 vacation, that means spending $250 to $500 on insurance, which might seem expensive but could end up being a lifesaver.

How to protect yourself before traveling internationally

Not all travel insurance is created equal when it comes to medical emergencies abroad. Many basic policies focus primarily on trip cancellation and lost luggage, with medical coverage as an afterthought. To make sure you’re covered for medical emergencies, look for the following coverage:

• Medical evacuation coverage of at least $250,000.
• Primary (not secondary) medical coverage.
• Coverage for pre-existing conditions.
• Direct payment to medical providers (so you don’t have to pay upfront)

If you’re planning an international trip, the U.S. State Department also has a few recommendations:

• Purchase comprehensive travel insurance with specific medical evacuation coverage.
• Bring documentation about your medications and medical history.
• Register with the U.S. embassy in your destination country through the Smart Traveler Enrollment Program.
• Research the quality of medical care at your destination.
• Consider traveling with a credit card that offers robust emergency medical benefits.
• Keep digital copies of your insurance documents accessible from anywhere.

The Dervis family’s experience serves as a sobering reminder that even carefully planned vacations can quickly turn into medical and financial emergencies — and that spending a few hundred dollars on comprehensive travel insurance before your trip might be the best money you ever spend.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
• Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.