BY LAUREL SMITH
MOUNTAIN CITIZEN
ASHLAND — Addiction Recovery Care (ARC) founder Timmy G. Robinson Jr. pleaded not guilty June 17 to federal wire fraud and money laundering. The charges stem from a June 4 indictment alleging he orchestrated a scheme involving millions of dollars in Employee Retention Credit funds.
Robinson, of Louisa, entered the plea during an arraignment before U.S. Magistrate Judge Edward B. Atkins in U.S. District Court in Ashland. Prosecutors did not seek detention and the court ordered Robinson released pending trial under a series of conditions.
A federal grand jury charged Robinson with one count of wire fraud and two counts of money laundering.
According to the indictment, ARC sought a $3.3 million Employee Retention Credit based on wages paid during the first quarter of 2021 and a second credit worth approximately $3.59 million based on wages paid during the second quarter of 2021.
Prosecutors allege Robinson sold rights to the credits in July 2025 to an investor identified in the indictment as “Buyer 1” for approximately $2.72 million and later transferred rights to the second credit to the same buyer in exchange for a 30-day extension of a contractual deadline.
Prosecutors contend Robinson later arranged to sell the same credits to a second investor. According to the indictment, “Buyer 2” agreed to purchase the first credit for approximately $2.99 million and the second credit for approximately $3.23 million. The second buyer allegedly wired nearly $4.74 million to an ARC bank account in November 2025.
The allegations mirror claims raised earlier this year in civil litigation filed in federal court in New York. In January, Angelica Capital Trust sued ARC, alleging the treatment provider defaulted on an $8 million loan secured by federal tax credits. Shortly afterward, Clear Cove Opportunities Fund alleged ARC had sold the same tax credits to Clear Cove in July 2025 before selling them again to Angelica Capital Trust in November 2025.
According to the federal indictment, ARC received the tax-credit proceeds from the Internal Revenue Service on Dec. 2, 2025. However, prosecutors allege Robinson directed that the money not be conveyed to either buyer and instead be used for operating expenses and debt obligations.
The money-laundering charges stem from two wire transfers prosecutors allege involved proceeds of the fraud scheme, including a $325,000 transfer to an ARC account and a $997,500 transfer to a law firm.
As conditions of release, Robinson is prohibited from possessing firearms, must remain within the Eastern District of Kentucky, must avoid contact with potential victims or witnesses in the case, and may not open new lines of credit, checking accounts, savings accounts or money market accounts exceeding $500 without approval. He also may not liquidate assets without permission from probation authorities.
Federal prosecutors are seeking forfeiture of any property derived from or used to facilitate the alleged offenses.
If convicted, Robinson faces up to 30 years in prison and fines of up to $500,000.
A final pretrial conference is scheduled for July 31 before U.S. District Judge David L. Bunning. Jury trial is scheduled to begin Aug. 10 in Ashland and is expected to last three days.
An indictment is an allegation of wrongdoing. Robinson is presumed innocent unless and until proven guilty in a court of law.