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Louisa Today
By the People, for the People
Addiction Treatment Provider Faces Lawsuits Over $8 Million Loan
Two creditors claim Addiction Recovery Care defaulted on the same tax credit-backed loan
Jan. 29, 2026 at 6:07pm
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Addiction Recovery Care (ARC), Kentucky's largest addiction treatment provider, is facing lawsuits from two creditors claiming the company defaulted on an $8 million loan. The loans were secured through federal income tax credits that ARC allegedly sold to both creditors. ARC received the $8 million in tax credits in December but has not repaid either company, leading to the legal battles.
Why it matters
The lawsuits highlight the financial troubles facing ARC, which is already under an FBI investigation for possible healthcare fraud. The company has been forced to close facilities and lay off staff amid mounting financial problems and allegations of fraudulent billing practices.
The details
Angelica Capital Trust first sued ARC in early January, accusing the company of refusing to repay an $8 million loan. Now, a second company, Clear Cove Opportunities Fund, is seeking to join the case, arguing it had the first claim on the same $8 million in tax credits that ARC used as collateral for the loans. Both companies allege ARC sold the 'very same' tax credits to each of them, with Clear Cove claiming ARC 'has now been exposed as having perpetrated fraud' by doing so.
- In July 2025, ARC sold $8 million in tax credits to Clear Cove.
- In November 2025, ARC sold the 'very same' $8 million in tax credits to Angelica Capital Trust.
- In December 2025, ARC received the $8 million in tax credits but has not repaid either Clear Cove or Angelica.
The players
Addiction Recovery Care (ARC)
Kentucky's largest addiction treatment provider, facing financial troubles and an FBI investigation into possible healthcare fraud.
Angelica Capital Trust
A Bahamas-based creditor that sued ARC in early January 2026 over an $8 million loan.
Clear Cove Opportunities Fund
A Chicago-based creditor seeking to join the lawsuit against ARC, claiming it had the first claim on the $8 million in tax credits used as collateral for the loans.
Tim Robinson
The founder and owner of Addiction Recovery Care.
Lelia Robinson
The wife of Tim Robinson and co-owner of Addiction Recovery Care.
What they’re saying
“A lawsuit only represents one side's perspective. We aren't going to litigate our case in the media and will not comment on pending litigation.”
— Vanessa Keeton, ARC spokeswoman
What’s next
The judge has ordered ARC to place $4.7 million in an escrow account and provide daily updates on the balance to ensure the funds are not dissipated. A hearing on Angelica's request to hold ARC and its owners in contempt of court is scheduled for February 11.
The takeaway
The lawsuits against ARC highlight the company's mounting financial troubles and allegations of fraudulent practices, which have already forced it to close facilities and lay off staff. The legal battles over the $8 million loan raise concerns about the company's solvency and the potential impact on addiction treatment services in Kentucky.