(Phoenix, Ariz. -- Aug. 30, 2010) Attorney General Terry Goddard welcomed the arrival of the first wave of National Guard troops to the Arizona-Mexico border today, but said the border cannot be effectively secured until the federal government goes on the offense against the Mexican drug cartels.

"These soldiers will work with the Border Patrol and will be put to good use," Goddard said. "But the federal government needs to do more to take the fight to the organized criminals who bring most of the drugs and illegal immigrants across our border. We need to hit the cartels in Mexico with decisive, overwhelming and binational force. Defensive steps alone will not stop these deeply entrenched, heavily armed and well-funded organizations. We need to target their leadership and dismantle them."

Goddard added that though cartels remain based in Mexico, their presence in the U.S. is growing. The U.S. Department of Justice estimates that the cartels today operate in more than 200 American cities.

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

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(Phoenix, Ariz. -- Sept. 1, 2010) Attorney General Terry Goddard announced that Patrick Chorpenning Sr., 63, of Peoria, who served as director of the Arizona Department of Veterans Services (AZDVS) between 1999 and 2007, pleaded guilty today to two felony charges in Maricopa County Superior Court.

Chorpenning pleaded guilty to conflict of interest and solicitation to commit a violation of the procurement code, both Class 6 felonies.

A plea agreement provides that he pay $421,351 to the State and be placed on probation. He is scheduled to be sentenced on Oct. 6 by Judge Susan Brnovich.

The conflict of interest count pertains to the hiring of his wife while he was director of the veterans agency in a position he created for her. He also was accused of helping obtain an unjustified increase in her salary. His wife was employed at the agency for more than three years.

The solicitation charge relates to his improper payment of $382,756 of AZDVS funds to a media company, Go Media of Phoenix, by circumventing the State Procurement Code from 2002 to 2005.

The $421,351 in restitution represents the unauthorized money paid to Go Media in violation of the Procurement Code, plus an additional $38,595 in unauthorized expenditures of agency money for employee meals and gifts.

"These offenses amounted to a serious misuse of public money and the public trust," Goddard said. "Arizona's veterans have served their country selflessly. We owe it to them to ensure that the services and benefits they have earned are never misspent."  

The case was prosecuted by Assistant Attorney General Theodore Campagnolo. The case was investigated by the Arizona Office of the Auditor General and the Special Investigations Section of the Attorney General's Office. Chorpenning was indicted on eight counts in November 2009.

A photo of the defendant is attached. For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

chorpenning photo.jpg

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(Phoenix, Ariz. -- Aug. 26, 2010) Attorney General Terry Goddard commended new laws proposed today by Mexican President Felipe Calderon to fight cross-border money laundering that supports the violent drug cartels in Mexico.

Calderon announced he is proposing a new law that would ban cash purchases of real estate and other expensive goods costing more than 100,000 pesos, or about $7,650. He also proposed requiring businesses to report large transactions, including real estate, jewelry and purchases of armor plating.

"I am very pleased with today's announcement by President Calderon that he intends to strengthen Mexico's anti-money laundering laws," Goddard said. "As I told Mexican officials during my visit there in February, such changes are crucial to our joint efforts to crack down on the vicious cartels that have killed so many south of the border and smuggled so many drugs and people into our country.  I urge the Mexican Congress to act quickly on these essential reforms."

Some estimates of the cross-border smuggling of cash to the cartels have been above $25 billion a year. In its four-year-old offensive against the drug cartels, the Mexican  government has drawn criticism for not doing more to block the flood of cash that funds their criminal activities, including human smuggling.

"Today, more than ever, it is essential to act and have the tools needed to hit criminals where it hurts most, in their finances," Calderon said today.

Goddard said anti-money laundering techniques developed by his Office can help Mexican authorities bring actions against the cartels. Those investigative techniques were praised in a recent report by the U.S. Government Accountability Office (GAO), which recommended adoption by the federal government. Goddard also noted that his Office's work in helping train more than 400 Mexican prosecutors should be helpful in enforcing the new laws and vowed to make such help available as long as it is needed.  

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

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(Phoenix, Ariz. -- Aug. 27, 2010) Attorney General Terry Goddard expressed appreciation for a Utah Supreme Court ruling today that rejected efforts made by a polygamous sect to challenge changes made to the United Effort Plan (UEP) Trust. The trust owns a substantial amount of the properties in the adjacent towns of Colorado City, Ariz., and Hildale, Utah.

The court held that the Fundamentalist Church of Jesus Christ of Latter-Day Saints (FLDS) waited too long to appeal rulings concerning the administration and reform of the trust.  The court administration of the trust was begun five years ago by the Utah and Arizona Attorney Generals' Offices. The states intervened when the former trustees abandoned the trust in the face of lawsuits that threatened its assets.  

"I am pleased by the Utah Supreme Court's decision today preserving the trial court's rulings," Goddard said. "I will continue to fight aggressively for the rule of law throughout Arizona."
  
The court ruled today that FLDS members had many opportunities to participate in the trial court proceedings and to contest changes made in the trust and its management. The sect's silence for several years "gave the district court every reason to believe that the reformation had occurred without opposition," the court's opinion stated.

Assistant Attorney General Bill Richards represented Arizona and argued the case before the Utah Supreme Court.

A copy of the court's ruling is attached. For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

UEP Ruling 2010.PDF

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(Phoenix, Ariz. -- Aug. 26, 2010) Attorney General Terry Goddard today announced that Edward L. Carpenter, 52, of Phoenix, a minister and former mortgage broker, has been found guilty by a Maricopa County Superior Court jury of 10 charges related to his operation of a fraudulent mortgage "rescue" business.

Carpenter was convicted on five counts of fraudulent schemes and artifices, all Class 2 Felonies, and five counts of fraudulent schemes and practices, all Class 5 Felonies.

The defendant contacted local homeowners, falsely stating he ran a "mortgage elimination" business that could legally remove the homeowners' names from their mortgages, giving them ownership of the properties free and clear. He charged up-front fees of $1,000 or more.

Utilizing his knowledge of the mortgage system and his religious influence, Carpenter used the homeowners to file fraudulent foreclosure paperwork with the Maricopa County Recorder's Office. These filings were designed to cloud the title, confuse title companies, and cause mortgage companies to fund loans, portions of which were obtained by Carpenter. He received more than $257,398 in illegal proceeds from this scheme.

"This case is particularly outrageous example of mortgage modification schemes," Goddard said. "Representing himself as a minister to gain the trust of homeowners, this fraud artist said he could have their mortgages forgiven and enable them now to own their properties free and clear. He then filed fraudulent paperwork that victimized mortgage companies, title companies and the consumers. I encourage all homeowners contacted by mortgage "rescue" operators to check out the claims carefully and not possibly lose the home that they are trying so hard to save."  

Assistant Attorney General Yukiko Kuwata prosecuted the case in a six-day trial. The jury returned its verdict on Wednesday. Carpenter has been taken into custody and faces sentencing on October 7 before Judge Janet Barton.  For sentencing purposes, the jury also found the State had proven two aggravating factors for each of the 10 counts.

A copy of the indictment and a photo of the defendant are attached. For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

Carpenter Booking Photo.jpg
Carpenter Indictment.pdf
Audio - Carpenter 8.26.2010.mp3

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(Phoenix, Ariz. -- August 25, 2010) Attorney General Terry Goddard today announced that Harold Smith Lee, Jr. of Tempe, Michael Orlando, of Sun City West, and a third unnamed defendant have been indicted on six counts related to running an illegal gambling operation.

The third defendant is not identified at this time because grand jury secrecy requires his name be withheld until he has been served.

The charges are one count of conspiracy, one count of conduct of operating an illegal enterprise, two counts of promotion of gambling, one count of benefiting from gambling, and one count of betting and wagering.

The charges include two Class 3 felonies, two Class 5 felonies and two Class 1 misdemeanors.  Also indicted was the non-profit "International Card and Game Players Association" (ICGPA) operated by Lee and based in Tombstone, Ariz.

"Arizona statutes are clear as to when and where gambling should be allowed in our state," Goddard said.  "I will enforce the will of the people and prosecute illegal gambling wherever it occurs."

"We are working with law enforcement agencies throughout the state to raise awareness about illegal gambling and the importance of combating it," said Mark Brnovich, director of the Arizona Department of Gaming. "These types of operations present significant risks for the operators, the patrons and our communities.”

The charges arise from the now-closed Ace High Card Room and Social Club (Ace High), located at 12751 West Bell Road in Surprise.  According to court documents, Lee, who refers to himself as Judge Lee from his prior position as a justice of the peace in northeast Phoenix, is alleged to have provided advice regarding the set-up and operation of Ace High, which was run by Orlando and unnamed defendant.

In exchange for this assistance, Lee and ICGPA allegedly received a portion of Ace High's revenue. Ace High, which was operated by Orlando and the unnamed defendant from July of 2008 until July of 2010, is alleged to have taken wagers for a fee and to have collected a fee prior to hands of Texas Hold-em poker.  

This case was investigated by the Arizona Department of Gaming.  The case is being prosecuted by Assistant Attorney General Todd Lawson. Indictments were handed down by the State Grand Jury on August 23.  The defendants are scheduled to be arraigned in Maricopa County Superior Court on September 7.

A copy of the indictment is attached. For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

Gaming Indictment 8-25-10.pdf
Audio - Gambling-8.24.10.mp3

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(Phoenix, Ariz. -- Aug. 13, 2010) Attorney General Terry Goddard today applauded federal approval of a $600 million measure to increase border security, calling it a significant  step in the right direction.  He added, however, that the Mexican border will never be made secure until the drug- and human-smuggling cartels based in Mexico are taken down.

President Obama signed the $600 million bill into law this morning. It will increase both human and technological resources along the U.S.-Mexico border and fund the hiring of 1,000 new Border Patrol agents and more Immigration and Customs Enforcement (ICE) agents. The new law will also pay for more sophisticated communications equipment and expanded use of unmanned surveillance drones.  

"Our border cannot be made secure as long as the cartels are so deeply entrenched and well-funded," Goddard said. "As long as they remain powerful, rampant trafficking of drugs, humans, guns and money across our border will persist. I continue to urge the President and Congress to go after them with decisive, overwhelming and binational force."

Bringing down the cartels, the Attorney General added, would substantially reduce illegal immigration because most illegal crossings are coordinated by the cartels and their network of armed escorts, scouts, intelligence and communications.

Goddard again called on the federal government to follow the recommendation in a recent report from the U.S. Government Accountability Office (GAO) to adopt investigative techniques developed by the Arizona Attorney General's Office to disrupt the flood of cash from wire transfers to the cartels. Blocking the flow of money is one sure way to weaken the cartels and make the border more secure, he said.

For more information, contact Communications Director Steve Wilson at (602) 542-8351.

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(Phoenix, Ariz. -- Aug. 13, 2010) Attorney General Terry Goddard today announced that Kathy Salazar, 51, who worked as a dental office manager in St. Johns, has been sentenced in Apache County Superior Court to one year in prison for insurance fraud, a class 6 felony. She also will serve seven years probation for theft, a class 2 felony.

Salazar pleaded guilty to submitting false insurance claims for dental procedures that were never performed and then pocketing the insurance checks.

Judge Michael Roca also ordered her to pay a $5,000 fine and $88,408 in restitution to Dr. Howard Lee of St. Johns.  Salazar worked in his office for 28 years as a dental assistant and office manager. She lived in St. Johns before recently moving to Mesa.  

Salazar's scheme was uncovered during a routine audit performed by Delta Dental which showed irregularities in submitted claims.

This case was investigated by the Arizona Department of Insurance Fraud Unit and prosecuted by Assistant Attorney General Beverly Rudnick.

A copy of the indictment is attached.  

For more information, contact Communications Director Steve Wilson at (602) 542-8351.

Kathy Salazar Indictment 2010.pdf

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(Phoenix, Ariz. -- Aug. 9, 2010)  Attorney General Terry Goddard today announced that Claudia Washburn of Payson and Diana Joy Glattfelder of Prescott Valley have been charged with hindering prosecution and conspiring to commit escape in the July 30 escape of three convicts from a private prison near Kingman.

The complaint alleges that Glattfelder and Washburn provided the escapees with “money, supplies and/or transportation” in violation of Arizona law and with the intent to hinder their apprehension and prosecution. Washburn is the mother of escapee John McCluskey, and Glattfelder is his ex-wife.

McCluskey, Tracy Province and Daniel Renwick escaped with the alleged assistance of Casslyn Welch.  Renwick was captured in Colorado the day after the escape.  Province was apprehended early this morning in Meeteetse, Wyo., about 60 miles from Yellowstone National Park.   

Province and McCluskey are suspected in the murders of an Oklahoma couple whose charred bodies were found in a camper in Santa Rosa, N.M., over the weekend.

McCluskey and Welch remain at large and presumed to be in or near Wyoming, armed and extremely dangerous.

"I am pleased to assist the U.S. Marshals Office in this investigation and congratulate them on the arrest of Tracy Province," Goddard said.  “We will remain vigilant in our efforts until the last escapee has been caught.  We will use all legal tools at our disposal against anyone who knowingly assists these dangerous convicts in any manner.”

This case is being handled by Assistant Attorney General Natalie Huddleston.

A copy of the direct complaint is attached.  For additional information, contact Press Secretary Molly Edwards at 602-542-8019.

GFW Charging Doc.pdf

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(Phoenix, Ariz. -- Aug. 9, 2010)  Arizona Attorney General Terry Goddard today announced a $1,181,400 settlement with Pulte Home Corporation and Pulte Mortgage, LLC (collectively “Pulte”), resolving the State’s investigation into allegations that Pulte’s pre-qualification practices, earnest money deposit policies and Spanish-language marketing efforts violated Arizona’s consumer protection law.

The settlement, in which no admission of fault or finding of liability is made, will be submitted to the Maricopa County Superior Court for final approval.    

“Certainly homeowners need to educate themselves about all of their options when buying a home,” Goddard said. “But homebuilders and lenders have a legal obligation to provide their customers with complete and accurate information.  I commend Pulte’s commitment to amend its practices and bring more transparency into buying and financing a Pulte home.”

“Pulte respects the concerns of the Arizona Attorney General and commends the Office for its ongoing efforts to protect consumers throughout the home-buying process,” said John Chadwick, Southwest Area President of Pulte Group, Inc.  “We hold ourselves to the highest standards in customer services and have always operated in good faith with our customers and the State.  We look forward to maintaining our role as an important contributor to Arizona’s job and housing market, as we have for the past 50 years.”

The Consent Judgment stipulates that Pulte will:

• Ensure that Pulte Home’s Arizona sales representatives do not represent or imply that they are able to “pre-qualify” Arizona consumers for home loans.
    
• Disclose orally and in writing that communications between a prospective buyer and Pulte sales staff regarding how expensive a home the consumer can afford to buy do not constitute an offer of financing.
    
• In one document, clearly disclose: (1) Pulte offers buyers incentives, such as free upgrades or money toward closing costs, in exchange for the buyers’ use of Pulte Mortgage or other affiliated businesses, and consumers who do decide to use a lender other than Pulte Mortgage will not receive such incentives or discounts. (2) There are other providers of such services, and fees, charges, loan terms and interest rates may vary among providers.
    
• Ensure that the representations made in its English-language and Spanish-language marketing materials are equivalent.
• Refund $81,400 to 10 Arizona consumers who the Attorney General alleged wrongly forfeited their earnest money deposits after canceling their purchase agreements.
    
• Pay $200,000 into an escrow account which will fund any new, legitimate claims for earnest money deposit refunds that are filed with the Arizona Attorney General’s Office within 12 months of the settlement.
    
• Pay $500,000 to the Consumer Fraud Revolving Fund to fund the Attorney General’s consumer protection, education and outreach programs.
    
• Pay $100,000 to fund the publication and dissemination of Spanish-language educational  materials.
    
• Pay $300,000 as reimbursement of the Attorney General’s costs and investigative expenses.

Press Release -Pulte 9- 2010.pdf
Audio - Pulte Homes-8.5.10.mp3

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(Phoenix, Ariz. - Aug 4, 2010) Attorney General Terry Goddard today issued the following statement:

"Words cannot express how saddened I am by the loss of a community hero, Chandler Police Officer Carlos Ledesma. My Office had the fortunate opportunity to have worked with Officer Ledesma, and to learn first-hand of his courageous dedication to law enforcement. Officer Ledesma died doing the work he loved.

“I offer my sincerest condolences and hopes for healing to his wife and children during this very difficult time.

“This tragedy is a reminder of the challenges that our officers face daily to safeguard our freedom and security. They risk their lives in the name of our safety. For that, I am eternally grateful.”

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National Night Out-8.3.2010.mp3

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(Phoenix, Ariz. -- July 29, 2010) Attorney General Terry Goddard today commended the selection of Luke Air Force Base as a training base for the next generation of Air Force jets, the F-35 Joint Strike Fighter.

"The Air Force's choice of Luke is terrific news for the citizens of Arizona," Goddard said. "Since its opening in 1941, Luke has played a vital role in our nation's security and our state's economy. It has earned its status as one of America's premier air bases. Its choice for the F-35 promises to continue its prominent mission far into the future."

Goddard has been one of the state's strongest advocates for Luke's selection. In addition to making several trips to the Pentagon to promote the base in meetings with senior Defense Department officials, he led the legal fight against residential encroachment that had placed Luke's chance of being chosen in jeopardy.

Luke's bid for the F-35 was significantly enhanced by an agreement Goddard brokered five months ago with the Maricopa County Board of Supervisors. Under the agreement, the county will no longer issue residential building permits in the high noise and accident potential zones near the base.

Controversy over encroachment around Luke goes back to 2004 when the Arizona Legislature passed a law to ensure adequate buffer zones around the state's military bases. All local governments in Maricopa County complied with the law except the county itself, which continued to issue residential building permits near the base.

Goddard issued a legal opinion to the county and followed up with a letter asserting its obligation to protect Luke from further encroachment. When the county did not agree to comply, he filed a lawsuit in Maricopa County Superior Court asking the judge to require the county to take the steps specified in state law. Though the court ruled in the state's favor on nearly every point in the lawsuit, the county refused to give up its legal challenge until the out-of-court agreement was finally reached in February.

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

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(Phoenix, Ariz. - July 29, 2010)  Arizona Attorney General Terry Goddard today announced he has filed a lawsuit against The Guardian Group, LLC (“Guardian Group”) for engaging in allegedly deceptive mortgage loan reduction services that have cost more than 2,500 consumers millions of dollars.

Goddard also called attention to a new state law taking effect today that prohibits foreclosure consultants and mortgage “rescue” companies from charging upfront fees. The Attorney General supported passage of the law.

“This company has exploited the financial struggles of hundreds of homeowners by promising them mortgage relief it couldn’t deliver,” Goddard said. “The Guardian Group’s conduct makes the case for the state’s new foreclosure law, which prohibits the kind of large upfront fees it collected.”

The lawsuit, filed in Maricopa County Superior Court, alleges that the Scottsdale-based Guardian Group fraudulently represented itself as providing loan reduction services to homeowners struggling to make their mortgage payments. The company charged consumers an average advance fee of $1,595 for mortgage loan refinancing services, which it rarely provided.  It collected fees from more than 2,500 consumers for enrollment in its Principal Reduction Program since August 2009.  

The company, which markets nationally, made claims it would negotiate with lenders to purchase a consumer’s note for less than face value and sell the note in an investment package to a third-party investor.  Guardian Group then told the consumer that it would modify the rates and terms of the consumer’s mortgage loans and reduce the principal owed to 90 percent of current market value.   

Guardian Group fraudulently represented to consumers that it had $5 billion allocated for its “Principal Reduction Program” because it had multiple investors prepared to purchase mortgage notes.  The Attorney General’s Office learned that not one of the supposed investors actually invested money in the company.  

This lawsuit was filed just before the new law regulating foreclosure consultants took effect today. The law prohibits foreclosure companies from charging upfront fees and sets forth requirements that apply to foreclosure consultants. Had this law been in effect prior to the filing of the lawsuit against Guardian Group, it would have provided an additional legal avenue to pursue further recourse for consumers.


The lawsuit specifically alleges:
●   Guardian Group misrepresented the services that a consumer in the Principal Reduction Program could expect to receive and the company’s ability to provide those services.
●   Guardian Group misrepresented to consumers that it had multiple investors prepared to purchase mortgage notes, when no actual investors had ever invested money in the company.
●   Guardian Group misrepresented the time required to process a file, declaring it would take 60-90 days, when it actually would take much longer to process or not be processed at all.
●   Guardian Group deceived consumers by promising them a refund while often not providing one.

The lawsuit asks the court to:
●   Enter an injunction against the defendants, prohibiting them from engaging in the unlawful acts and practices alleged in the complaint.
●   Order defendants to pay restitution to all victims.
●   Order defendants to pay a civil penalty of up to $10,000 for each violation of the Consumer Fraud Act.
●   Order defendants to reimburse the Attorney General’s Office for its costs in the investigation.

This case is being handled by Assistant Attorney General Rebeca Hoeffer.

In a separate administrative action, the Arizona Department of Financial Institutions issued a Cease and Desist Order against Guardian Group for acting as mortgage broker without obtaining a license.  A hearing on that matter is set for October 18, 2010.   

Free help is available to homeowners who have questions or need help working through their housing situation form the Arizona Foreclosure Prevention Helpline at 1-877-448-1211.  Callers will be directed to local housing counseling agencies approved by HUD.   

Arizonans who believe they have encountered fraudulent activity through so-called "rescue" scams can file a complaint with the Arizona Attorney General’s Office, Consumer Information & Complaints, www.azag.gov or 602-542-5763 (Phoenix); 520-628-6504 (Tucson) 800-352-8431 (outside Phoenix or Tucson metro area).

A copy of the complaint is attached.  For additional information, contact Press Secretary Molly Edwards at (602) 542-8019.

Audio - Rescue-Scams.mp3

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(Phoenix, Ariz. -- July 26, 2010) A new report released by the U.S. Government Accountability Office (GAO) praises the pioneering work done by the Arizona Attorney General’s Office to combat human-trafficking by disrupting the transfer of funds to the Mexican cartels.

The 70-page report says the Arizona approach stands as a model for stronger federal efforts to reduce smuggling of illegal immigrants across the southwest border, since most illegal border crossings are coordinated by the cartels.

Goddard urged the federal government to act on the GAO recommendations and adopt investigative tools developed by his office to cut down the flood of cash that funds the cartels’ violent operations.

"For the past seven-and-a-half years, my Office has been fighting border crimes, especially human-smuggling, and our most effective strategy has been to follow the money," Goddard said upon his return from testifying at a congressional hearing in Washington, D.C., about illegal immigration. "We are alone among the states in developing investigative techniques that work. The GAO's report makes it clear that the federal government could use its greater resources to leverage those techniques, reduce the flow of cash and weaken the cartels.”

The report encourages the U.S. Immigration and Customs Enforcement Office (ICE) to adopt the techniques used in Arizona to track money transfers wired to the cartels to pay for human smuggling.

"The Arizona Attorney General has disrupted alien smuggling organizations and seized assets by focusing on money service businesses; opportunities exist to leverage these resources," the GAO report says. "Arizona's financial investigative techniques and resources offer the potential to enhance efforts to counter alien smuggling as well as advance other federal anti-money laundering goals and objectives."

Richard M. Stana, director of homeland security issues for the GAO, said Arizona's work holds great promise for wider federal application.

"Arizona mined data to identify patterns and connect dots," Stana said. "That kind of strategy, we think, is really important."

Goddard’s Office has prosecuted dozens of human smuggling cases in the past few years. In the most recent case, Rosalio Palacios, 28, an illegal alien Mexico, pleaded guilty to five felony charges and was sentenced last week to seven years in prison. He was the ringleader of a human-smuggling operation that is believed to have helped several thousand illegal immigrants cross the border into Arizona in the past several years.  

A copy of the GAO report is attached.   For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

2010 GAO Report.pdf
GAO Report 7.26.2010.mp3

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(Phoenix, Ariz. - July 23, 2010) In another strike against human smuggling into Arizona, Attorney General Terry Goddard today announced the sentencing of a leader of a smuggling organization, Rosalio Palacios, 28, an illegal immigrant from Mexico, to seven years in prison.

Maricopa County Superior Court Judge Christopher Whitten also ordered him to pay a $46,000 fine. Palacios, who was living in Phoenix, had pleaded guilty to five felony charges: participating in a criminal syndicate, illegal control of an enterprise, human smuggling, illegal use of a wire/electronic communication, and fraudulent schemes and practices.

Palacios was believed to be a ringleader of an organization that smuggled several thousand illegal immigrants in the past several years from Mexico to drop houses in Phoenix and then on to various parts of the United States at up to $1,800 per person. The investigation and prosecution of Palacios resulted in the dismantling of this human smuggling organization, its leaders and its members.

The organization also served as an independent contractor to other human smuggling organizations, as well as providing maintenance of vehicles used to transport illegal immigrants. Palacios was also involved in using one or more members of the organization to obtain fraudulent motor vehicle titles for vehicles used to transport illegal immigrants.

The substantial prison term is notable because Palacios did not have a prior criminal history in the United States. This investigation was conducted by the Financial Crimes Task Force, involving members of the Phoenix Police Department, Arizona Department of Public Safety and the Immigration & Customs Enforcement Bureau (ICE). The case was prosecuted by Assistant Attorney General Theodore Campagnolo.

Attached is a photo of Palacios. For additional information, contact Press Secretary Molly Edwards at 602.542.8019.

Palacioa Booking Photo.jpg

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(Phoenix, Ariz. -- July 22, 2010) Testifying at a congressional hearing today in Washington, D.C., Attorney General Terry Goddard urged the federal government to intensify its efforts to take down the Mexican drug cartels and to utilize techniques developed by his Office to disrupt the flow of money that funds their violent operations.

Defeating the cartels would be the best way to reduce illegal immigration into the United States, Goddard said, because they control the smuggling of both humans and drugs across the Mexican border.

"The Justice Department has called the cartels 'the greatest organized crime threat to the United States,' and I agree,” Goddard testified. “The overwhelming majority of illegal border crossings are conducted and coordinated by these criminal organizations. It is long past time for Congress to make dismantling the cartels a top national priority."

Goddard offered a list of what he called the five most important things Congress can do to stop alien smuggling:

(1) Target the drug cartels and their leadership. Without cartel assistance, illegal border crossings will drop dramatically.
 
(2) Go after the money. The cartels are estimated to bring in as much as $40 billion a year from drug-smuggling and human-trafficking. Stopping the flow of funds could do more than anything else to weaken them.

(3) Follow Arizona's lead. The Arizona Attorney General’s Office has developed techniques to stop illegal money transfers that work. This effort should be expanded across the entire southwest border.

(4) Anticipate the cartels' next moves. One move will likely be greater use of stored value devices, which need to be regulated much more effectively.

(5) Provide resources adequate to meet the threat. Additional federal resources should include $50 million in Operation Stonegarden funds to match the $50 million from our settlement this year with Western Union to support law enforcement agencies in the four southwest border states.         

Goddard testified before the House Homeland Security Committee's Subcommittee on Border, Maritime and Global Counterterrorism. The hearing was titled "Enhancing the Department of Homeland Security's Efforts to Disrupt Alien Smuggling Across our Borders."  

A copy of Goddard's written testimony is attached.  Video footage from the hearing will be available on our website at http://www.azag.gov/Criminal/Border/Video.html later this afternoon.

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

Goddard Congressional Testimony on Cartels 7-22-10.pdf

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(Phoenix, Ariz. - July 21, 2010)  The Arizona Attorney General’s Office was honored with two major awards from the Conference of Western Attorney’s General (CWAG), which concludes its summer meeting today in Santa Fe, N. M.

Assistant Attorney General Bill Richards received the Jim Jones Award, which recognizes the outstanding work of a lawyer on the staff of a CWAG member state, and the Arizona Attorney General’s Office website ( www.azag.gov ) won the award for Best Overall Website.

“I am extremely proud of the achievements these awards represent,” Attorney General Terry Goddard said. “Bill Richards has shown excellent leadership in our office in many ways, from his professionalism in the courtroom to his adroit handling of complex cases to his mentoring younger attorneys. Our web team has worked hard to make our site as user-friendly, reliable and helpful to the public as it can be.”   

The Jim Jones award is presented to the legal professional who shows a significant commitment to public service, advancement of multi-state CWAG goals, and a sustained commitment of time, talent and energy to issues affecting member states.

As a Senior Litigator in the Attorney General’s Civil Division since 2004, Richards has been involved in some of the Office’s biggest cases.  They include a series of legal fights related to the United Effort Plan Trust in Colorado City, Ariz.; Espinoza v. State of Arizona, a class action lawsuit challenging Arizona’s educational system; and Mayor Unified School District, et al., v. Winkleman, et al., challenging the validity of easements and rights of way granted by the State Land Department.  Richards has also took the lead in defending the state against a myriad of challenges to budget bills passed by the Arizona legislature.  

The Office’s website was recognized for its comprehensive use of social media, smooth navigation, inviting appearance and concise presentation of information. The website team consisting of Dominique Medina, Sarah Acer, William Morris and Jane Irvine completed a major overhaul of the site last year to make it more efficient and easy to use. This is the second time the Office has won this award since 2006.

CWAG is a bipartisan group comprised of the chief legal officers of 15 western states and three Pacific territories.  For additional information, contact Press Secretary Molly Edwards at 602.542.8019.

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(Phoenix, Ariz. – July 21, 2010) Because of his leadership in the fight against the criminal cartels based in Mexico, Attorney General Terry Goddard has been invited to testify Thursday morning in Washington, D.C., at a congressional hearing on efforts to reduce illegal immigration into the United States.

The hearing will be held by the House Homeland Security Committee’s Subcommittee on Border, Maritime and Global Counterterrorism. The hearing is titled “Enhancing the Department of Homeland Security’s Efforts to Disrupt Alien Smuggling Across our Borders.”

Goddard said his testimony will center on “what Congress should do to stop alien smuggling.”

More specifically, he said he will make the case why the federal government needs to mount a much larger campaign against the cartels that control human smuggling and drug smuggling into our country.

“Despite the size and sophistication of the cartels’ operations, I know we have the resources to dismantle their organizations. It is time for Congress and the Administration to focus on bringing them down to help secure our southwestern border,” Goddard said.

The hearing is scheduled to begin at 10 a.m. EST (7 a.m. Arizona time) in the Cannon House Office Building. Copies of Goddard’s testimony will be available when the hearing concludes.

For additional information, contact Press Secretary Molly Edwards at 602.542.8019.

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(Phoenix, Ariz. -- July 19, 2010) Attorney General Terry Goddard today called federal actions to strengthen security along the Mexican border a step in the right direction, but he said the Obama administration needs to place much greater emphasis on defeating the Mexico-based cartels that control drug-smuggling and human-trafficking into Arizona.

"The border enforcement actions announced today are overdue, but a welcome step forward," Goddard said. "They are not, however, going to stop the flow of drugs, guns and illegal immigrants across our border as long as the cartels continue to thrive. As I stated in a letter this month to President Obama, the growth in size, strength and sophistication of the Mexican cartels presents the most immediate threat to the security of Arizonans. We need a much stronger federal commitment to bring them down."  

The federal actions include the deployment of some 1,200 National Guard troops to the Southwest border, beginning Aug. 1; the assignment of more than 300 additional Border Patrol agents and customs officers to Arizona; the allocation of six additional aircraft and new mobile surveillance systems to the Tucson sector, and a new program to increase the prosecution of criminal aliens arrested for re-entering the U.S. after prior removal.

"Bolstering manpower and technology will help," Goddard said. "But our border will never be secure as long as the cartels are so deeply entrenched, so well-funded and operate so brazenly. The cartel leaders need to be identified and brought to justice by all means available."

Goddard also commended a bill introduced today by U.S. Reps. Harry Mitchell (D-Ariz.) and Brian Bilbray (R-Calif.) to help law enforcement diminish the number of drop houses in metro Phoenix used by the cartels as way stations for human-smuggling. The Stop the Drop Houses Act would close a federal loophole and allow civil forfeiture to be used to seize homes being utilized as drop houses. Under current law, civil forfeiture can be used to seize other property used in smuggling crimes, but not houses. Estimates of the number of drop houses in the Phoenix area have ranged as high as 1,000.

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

Border-Security 7-19-2010.mp3

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Some skimmers have also begun to utilize miniature remote cameras to capture the PIN of card users as they pay at the pump. Other skimmers have acquired wireless technology to intercept signals used to transmit card data from gas pumps to their central computer networks.

Scottsdale Police this week issued an alert which advised bank customers to be on the lookout for skimmers at bank ATMs. After skimming devices were found on machines at two Scottsdale banks.

This is not an isolated matter. One bank in Arizona told the Attorney General’s Office that many of its branches statewide have customers who have reported skimming.

Attorney General Goddard is offering the following tips to help consumers avoid becoming the next victim of a skimmer:

• Go inside the store to process transactions and remain inside to sign all credit card receipts. Keep your receipts in a secure location or shred them to protect your identity.
• Arizona Federal Credit Union suggests that you can protect your PIN by selecting “credit” at a gas pump. When using a credit card, your liability from a stolen card is limited to $50.
• If you do suspect skimming, call law enforcement immediately. You should also alert the gas station attendant. Do not rely on the attendant to call the police, as there have been instances in the past of skimming being perpetrated by the employees of a service station.

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504, or outside the Phoenix and Tucson metro areas at 1.800.352.8431. Consumers can also file complaints online by visiting the Attorney General’s Website at www.azag.gov . To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site.

If you have questions, please contact Press Secretary Molly Edwards at 602.542.8019.

(Phoenix, Ariz. - July 9, 2010) Attorney General Terry Goddard today responded to a press announcement by Advance America, the leading payday loan company in the state, that it will be closing its Arizona operations, saying that the departure “shows the repeal law is working.”

Goddard emphasized, however, that businesses that offer legitimate loans on commercially reasonable terms are welcome in Arizona and should be encouraged. “I hope that entrepreneurs and employees of the payday loan businesses will now set their sights on lawful loan products and business practices,” Goddard said.

“But Advance America made millions in Arizona off of a business model that preyed on vulnerable borrowers and charged them unconscionable interest rates and fees,” Goddard continued. “They could have amended their business practices like other companies and charged lawful rates, but they chose to fold their tent here. That’s just what Arizona voters hoped would happen when they rejected this industry at the polls.”

Before the payday loan statute expired, Goddard announced the formation of “Operation Sunset” to aggressively pursue payday lenders who attempt to skirt the ban on payday loans. As part of that initiative, Goddard sent Arizona payday loan companies, including Advance America, a letter in June informing them that he intends to enforce the ban and prosecute any attempts to evade the law.

“My message to the loan industry is clear,” Goddard summarized. “If you offer consumer loans on fair and commercially reasonable terms, Arizona is wide open for your business. But if you break our laws against charging consumers exorbitant interest and unfair fees, you are not welcome here.”

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

(Phoenix, Ariz. -- July 8, 2010) In a strongly worded letter, Attorney General Terry Goddard today urged President Obama to take swift action to strengthen America's fight against the powerful Mexican cartels, whom Goddard called the most immediate threat to U.S. border security.

Goddard noted that the 22,700 cartel-related murders south of border since 2007 exceed total military and civilian casualties in the nine-year-old Afghanistan war, yet the federal response to the growing security threat in Mexico pales in comparison. The U.S. is currently spending $12 billion a month to fight in Iraq and Afghanistan, but less than one percent of that amount on border security and the cartels.

The Attorney General stated that the President may have misjudged the nature of the border threat, given his recent remarks about the Mexican border being more secure today, in part because we have more boots on the ground.

Those remarks, Goddard said, miss a fundamental truth:  "Our border cannot be secure as long as the cartels are so deeply entrenched, so well-funded and operate so brazenly. Until the cartels are dismantled, rampant trafficking of drugs, humans, guns and money across our border will continue."

Goddard asked the President for a major initiative aimed at taking down the cartel leaders.

"I call on you to launch a major, multi-national, law enforcement initiative aimed first and foremost at identifying cartel warlords by name and bringing them to justice by all means available. Breaking up these cartels and restoring the rule of law within Mexico not only would bring better security to the border region, but also would greatly assist Mexican efforts to stabilize their economy and improve the conditions that compel so many Mexican citizens to seek work illegally in the United States."  

Goddard also expressed opposition to the federal lawsuit against Arizona's new immigration law.

"In the absence of a new and comprehensive federal immigration law, it is just wrong for this Administration to fight state efforts to address the effects of our broken border," he said.

A copy of the letter is attached.

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

July 8 Letter to President Obama.pdf

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(Phoenix, Ariz. – July 2, 2010) Attorney General Terry Goddard today commended the Arizona Supreme Court for upholding the death penalty against Joshua Idelfonso Villalobos, now 28, in the 2004 murder of five-year-old Ashley Molina.

According to court documents, Villalobos lived with Annette Verdugo, five-year-old Ashley Molina (Verdugo’s daughter), and the couple’s two-year-old daughter.  On January 3, 2004, Villalobos and Ashley Molina picked Verdugo up at work in Phoenix and took her to dinner.  Ashley did not eat and complained about stomach pains.

Villalobos and Ashley again picked Verdugo up from work after her shift ended in the early morning of January 4.  When Verdugo noted an odd smell, Villalobos claimed he had vomited in the car.  When they arrived home, Villalobos carried Ashley upstairs and put her to bed.  Around 7 a.m., Villalobos told Verdugo that Ashley was unresponsive.  After some delay, Villalobos and Verdugo took Ashley to the hospital.

The emergency room physician recognized immediately that Ashley was dead and found “somewhere between 150 and 200 bruises” on her body.  Villalobos told the physician that the bruises were from a fall in the shower.  Later, Villalobos admitted to grabbing Ashley by the arm and hitting her several times with a closed fist.  He also said that she passed out in the car and vomited on him while he was picking up Verdugo.  Ashley died between five to eight hours before being taken to the hospital.  

“This was a particularly vicious murder of an innocent child, ”Goddard said.  “The affirmation of the jury’s verdict sends a clear message that child abuse will not be tolerated in Arizona.”

In 2008, a Maricopa County jury sentenced Villalobos to death.  He appealed this decision to the Supreme Court, and their decision affirmed the jury’s verdict and upheld the death penalty.

The trial prosecutors were Patricia Stevens and Desi Rubalcava from Maricopa County Attorney’s Office.  Jonathan Bass from the Attorney General’s Office argued the case in the Arizona Supreme Court.

A copy of the opinion and photo of Villalobos are attached. For additional information, contact Press Secretary Molly Edwards at 602-542-8019.

Villalobos Opinion.pdf
picture_handler.jpg

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(Phoenix, Ariz. -- July 1, 2010) Attorney General Terry Goddard today expressed support for the immigration policy reforms proposed by President Obama, calling the President's plan long overdue and urgently needed.

"Based on the President's outline this morning, it appears he's proposing a responsible plan that deserves the immediate attention of Congress," Goddard said. "The President is offering a common sense path for illegal immigrants to get right with the law by passing a criminal background check, paying a fine, paying back taxes and learning English. These are all steps I have long endorsed.

"The failure of Congress to enact this kind of reform long ago is part of what led to the passage of SB1070 and all the divisiveness it has generated. If Arizona is ever to move past this issue, we need the type of common sense reform the president outlined today."

Goddard said the President didn't go far enough, however, in addressing border security.

"He said the border is more secure now than it has been in 20 years, but drug cartel murders and other violence south of the border are peaking and present a growing threat to the people of Arizona. The President needs to do more to support our efforts to fight the cartels and increase border security."

Goddard called on the President to work closely with members of Congress and give them an immediate timetable to consider his proposals. He added that Arizona's congressional delegation "should provide bipartisan leadership to pass the reforms that Arizona so desperately needs."

For more information, contact Press Secretary Molly Edwards at (602) 542-8019.

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(Phoenix, Ariz. – June 29, 2010) Attorney General Terry Goddard today announced the indictment of Dr. Corina Hollander, 56, of Tucson and seven other individuals who are accused of participating in a large-scale prescription drug fraud.

Hollander, a Tucson podiatrist, was charged with conspiracy, participating in a criminal syndicate, three counts of fraud, eight counts of trafficking in the identity of another person, six counts of forgery, 68 counts of obtaining a narcotic drug by fraud and nine counts of obtaining a dangerous drug by fraud.

“Abuse of prescription drugs is a serious and often overlooked problem in Arizona,” Goddard said. “Together with the help of the Drug Enforcement Administration and the Department of Health and Human Services, the Attorney General’s Office has, with this indictment, shown its commitment to stemming the illegal flow of prescription drugs.”

According to the allegations made by investigators, Hollander was using the names of patients and members of her staff’s family to write fraudulent prescriptions. Hollander and two employees would then have the prescriptions filled at local pharmacies.

"Medical professionals who abuse the privileges granted to them to prescribe controlled substances are no different than any other drug dealer.  They are preying on the weakness of others for monetary gain," said DEA Special Agent in Charge Elizabeth W. Kempshall.  "While the vast majority of medical professionals practice their trade with honor and professionalism, DEA and our law enforcement partners will continue to hold those who do not responsible for their abuse of the trust given to them by society."

The charges, filed Monday in Pima County Superior Court, are a result of a joint investigation conducted by the Drug Enforcement Administration’s (DEA) Tucson Tactical Diversion Squad, the Attorney General’s Special Investigations Section, the Attorney General’s Medicaid Fraud Control Unit, and the Department of Health and Human Services, Office of Inspector General.

This case is being prosecuted by Assistant Attorneys General Christina M. Vejar and Steve Duplissis.  

For additional information, please contact Press Secretary Molly Edwards at 602.542.8019.

HollanderMVD.jpg

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(Phoenix, Ariz. -- June 28, 2010) Attorney General Terry Goddard today issued the following statement in response to the assassination of a leading Mexican gubernatorial candidate by a presumed drug cartel:

"I am saddened and outraged by the assassination today of Rodolfo Torre, who was widely expected to be elected governor of the Mexican state of Tamaulipas, together with the shooting deaths of several of his staff members and bodyguards. I offer my condolences to their families and to the people of Tamaulipas, who have suffered a significant blow to their democratic process.

"These murders are a tragic demonstration of escalating cartel violence that has spread along the U.S.-Mexico border. Coupled with the near-fatal shooting last week of Erick Landagaray Macias, the chief of police in Rocky Point, these bloody ambushes just south of the border make clear the need for U.S. law enforcement to commit more state and federal resources to fight cartel-related crime and increase border security.

"I have been warning of the dangers posed by drug cartels for years. Our federal and state governments need to recommit to addressing these threats. The safety of our families and communities is at stake."

Audio - Torre Statement.mp3

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(Phoenix, Ariz. - June 25, 2010) Attorney General Terry Goddard today announced that his office has filed a lawsuit against the Town of Colorado City, Arizona, the City of Hildale, Utah, Hildale-Colorado City Utilities, Twin City Water Authority, and Twin City Power for alleged violations of the Arizona Fair Housing Act.

The suit follows an investigation by the Arizona Attorney General’s Civil Rights Division, which concluded that there is reasonable cause to believe that the Defendants discriminated against Colorado City resident Ronald Cooke by not providing water and other utility services because of his religion and by not accommodating his disability. Mr. Cooke is a former member of the Fundamentalist Church of Jesus Christ of Latter Day Saints (“FLDS”).

The Arizona Fair Housing Act prohibits discrimination in most housing related transactions. People who believe that their civil rights have been violated should contact the Attorney General’s Civil Rights Division for assistance in filing a complaint. Individuals wishing to file a civil rights complaint may call a statewide toll-free number at 1.877.491.5742 or visit www.azag.org. You may also submit an online complaint or find the nearest satellite office to speak to a community volunteer.

Attached is a copy of the complaint. For more information, contact Press Secretary Molly Edwards at 602.542.8019.

COLORADO CITY COMPLAINT.PDF

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(Phoenix, Ariz. – June 24, 2010)  Arizona Attorney General Terry Goddard today announced a $173 million recovery from several international Dynamic Random Access Memory (“DRAM”) manufacturers arising out of allegations of price fixing and other antitrust violations. Arizona’s share of the settlement has not yet been determined.

DRAM is common form of electronic memory, which stores and retrieves data at high speeds.  It is found in a wide variety of computer, telecommunication and consumer electronics products.

In 2006, Goddard and 32 other state attorneys general sued the DRAM manufacturers in the Northern District of California, alleging they violated state and federal antitrust laws by participating in an unlawful conspiracy to reduce output and fix DRAM prices at artificially high levels.  According to the complaint, consumers, equipment manufacturers, government agencies and educational entities overpaid for products containing DRAM as a result of the defendants’ conspiracy.  

“The defendants cheated Arizona consumers, businesses and government agencies by fixing prices in illegal schemes,” Goddard said.  “Such conduct will not go unpunished.  I will continue to protect consumers by aggressively pursuing price fixers and bringing them to justice.”
The DRAM manufacturers named in the lawsuit include the American companies Micron Technology, Inc. and NEC Electronics America, Inc., as well as foreign companies Infineon Technologies A.G. in Germany; Hynix Semiconductor, Inc. in South Korea; Elpida Memory Inc. in Japan; Mosel-Vitelic Corp. in Taiwan; and their American subsidiaries.
The U.S. Justice Department called the scheme “one of the largest cartels ever discovered.”  As a result of a federal investigation, four companies – Samsung, Hynix, Infineon, and Elpid – and 12 individuals confessed to criminal price fixing.

According to the terms of the settlement, which has not yet been filed with the court and is subject to court approval, the defendants will pay $173 million to settle the states’ suit as well as others brought by private plaintiffs.  The companies also agreed to refrain from illegal price fixing, provide antitrust training to their employees, and establish and maintain antitrust compliance programs.  

Other states participating in the settlement include:  Arkansas, California, Colorado, Florida, Hawaii, Idaho, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia and Wisconsin.   

A copy of the complaint is attached. For additional information, contact Press Secretary Molly Edwards at 602.542.8019.

DRAM Fed Complaint 2010.pdf

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(June 21, 2010) - The Arizona Department of Environmental Quality and Arizona Attorney General’s Office announced today that Far West Water and Sewer, Inc. and H & S Developers, Inc. have agreed to a $500,000 settlement for numerous water and air quality violations in Yuma County.

The project involves the use of state-of-the-art membrane bioreactor technology to produce Class A+ reclaimed water, the highest quality attainable. It also allows Far West to consolidate its operations by closing its Villa del Rey and Villa Royal WWTPs, directing their flow to the upgraded Del Oro plant, and, closing the Palm Shadows WWTP, and directing its flow to the upgraded Section 14 WWTP.

Far West Water and Sewer, H&S Developers Agree to $500,000 Settlement for Water, Air Quality Violations in Yuma County Page 2

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(Phoenix, Ariz. -- June 18, 2010) Attorney General Terry Goddard sent a letter today to Gov. Jan Brewer notifying her that he will withdraw as counsel for the State in the defense of immigration bills SB1070 and HB2162 to avoid a costly and distracting fight over the issue of legal representation.

Goddard said his decision was based primarily on a letter he received from the Governor four days ago that made clear her unwillingness to work cooperatively with the Attorney General's Office in defending the immigration bills, which are scheduled to become law on July 29. He noted that he has achieved a perfect record in defending the State's other immigration laws against court challenges.

"It is unfortunate that you have chosen to reject that cooperative effort and seek to score partisan political points by threatening to challenge my authority as Attorney General to defend our State in court," Goddard wrote.

"I am duty-bound to put my client -- the State of Arizona -- first," Goddard added. "I am acting today to avoid a costly and highly disruptive legal showdown despite my belief that I would prevail in such a contest."

A copy of the Attorney General's letter to the Governor is attached.

For more information, contact Molly E. Edwards at (602) 542-8019.

Letter to Governor 6-18-10.pdf

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(Phoenix, Ariz. – June 17, 2010) Attorney General Terry Goddard received the prestigious Kelley-Wyman award last night from the National Association of Attorneys General (NAAG) at the organization’s annual summer meeting in Seattle, Washington.

The Kelley-Wyman Award is the association’s highest honor and is presented to the Attorney General who has done the most to advance the objectives of the association. It is sometimes referred to as the “Attorney General of the Year” award. Goddard was selected to receive this honor in recognition of his work on the $94 million Western Union recovery, as well as his leadership on a number of law enforcement initiatives, including mortgage fraud and the multi-state tobacco settlement.  

“Attorney General Terry Goddard demonstrates the collegial and collaborative efforts that NAAG strives to facilitate among its membership,” stated NAAG President Jon Bruning, the Republican Attorney General of Nebraska.

“His guidance and perseverance led to the groundbreaking agreement among the four Southwest border states and Western Union that will provide substantial resources for law enforcement to combat money laundering,” Bruning added.  “General Goddard has been instrumental in combating Mexican drug cartels that threaten the security of the U.S.-Mexican border.  He has worked with Mexico’s top law enforcement officials to increase cross-border cooperation.”  

"AG Goddard very much deserves this prestigious award," said Paul Charlton, former U.S. Attorney for Arizona. "Terry has taken on the drug cartels, human smugglers, and border crime in effective and creative ways.  He is a thoughtful prosecutor whose good work has now been recognized nationally by his peers."

"As a border Sheriff, I know how hard the Attorney General has worked to provide resources to local law enforcement in the battle against the drug cartels,” stated Pima County Sheriff Clarence Dupnik.  “He understands that only through close partnerships with local law enforcement, the federal government, and Mexican law enforcement officials can we truly win the battle against these criminals. I congratulate the Attorney General and his team for winning this prestigious award."

"Attorney General Goddard has led the way in working with local law enforcement and prosecutors in fighting drug cartels and border crime," said Sheila Polk, Yavapai County Attorney. "I applaud NAAG for selecting him for this prestigious award."

“I would like to thank my fellow Attorneys General for this recognition of the great work we have done fighting border crime and mortgage fraud,” Goddard said. “This award is a welcome pat on the back to the hard-working men and women of the Arizona Attorney General’s Office and our law enforcement partners.  For almost eight years, I’ve had the privilege to work with my fellow Attorneys General across political and regional divides to find common ground to benefit our citizens.  We have a proud tradition among the AGs of independence from outside pressure and dedication to the law.”

The National Association of Attorneys General (NAAG) was founded in 1907 to help Attorneys General fulfill the responsibilities of their office and to assist in the delivery of high-quality legal services to the states and territories. The Association fosters interstate cooperation on legal and law enforcement issues, conducts policy research and analysis of issues, and facilitates communication among the states’ chief legal officers. . The Association’s members are the Attorneys General of the 50 states and the District of Columbia, the Commonwealths of Puerto Rico and the Northern Mariana Islands, and the territories of American Samoa, Guam and the Virgin Islands.

Goddard is the third Arizona Attorney General to win the Kelley-Wyman Award. Prior winners were Grant Woods in 1994 and Gary Nelson in 1970.  

For additional information, contact Press Secretary Molly Edwards at 602.542.8019.

Audio - Kelley-Wyman Award.mp3
Goddard-Bruning.jpg

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(Phoenix, Ariz. - June 16, 2010) The Arizona Attorney General’s Office and the Arizona Department of Gaming today announced a joint operation combating the proliferation of illegal gambling machines. A task force of agents and investigators from both offices seized more than 70 gambling machines known as Coin-Pushers at 57 metro Phoenix locations.

The Arizona Department of Liquor and the Arizona Department of Public Safety actively assisted in the operation.

Coin-Pushers are machines into which a player inserts a coin(s), usually quarters, in an attempt to have a "pusher" (a moving part within the machine) push other coins, tokens, jewelry, and currency of various denominations off a shelf and into a collection bin for retrieval. Players are not guaranteed a return for their money, and any return depends on chance.

Most of the seized Coin-Pushers have been in operation since January 2010, and public complaints alerted officials. Affidavits filed in support of search and seizure warrants have estimated $200,000 in illegal gambling revenue generated by the machines in the past five months.

The affidavits explained that in addition to being illegal gambling devices, the machines are a fraud because they contain hidden compartments into which many coins fall without becoming available to the player, giving a false impression of the chances of getting more value than the cost of playing.

"These devices are a fraud on the public," Attorney General Terry Goddard said. "They are built cleverly to deceive the player into thinking that coins or other valuables are about to fall into the collection bin as winnings, but players can't see how they really work."

Distribution, installation and collection of revenue generated from the Coin-Pushers are violations of numerous criminal offenses that include promotion of gambling; fraud, money laundering, benefiting from gambling, and possession of a gambling device.

“Protecting our communities from illegal gambling operations is a priority,” said Mark Brnovich, director of the Arizona Department of Gaming. “We take complaints of such activity very seriously.”

The department’s investigation is ongoing.

Assistant Attorney General Barton Fears is prosecuting this case.

For more information, contact Press Secretary Molly Edwards at 602.542.8019.

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(Phoenix, Ariz. - June 9, 2010) Attorney General Terry Goddard today announced the formation of “Operation Sunset”, an enforcement initiative of the Office designed to aggressively pursue payday lenders who attempt to evade the ban on payday loans. The Office will take action against any payday lenders that continue offering loans with illegally high interest rates after the law expires on June 30.

“I will use every tool at my disposal to enforce the end of exorbitant payday loans in Arizona and seek fines and penalties against those who try to continue this abusive practice," Goddard said. “I encourage citizens to report violations to our Office. Our enforcement will be swift and aggressive.”

Goddard noted that other states, such as North Carolina and Arkansas, have seen deceptive practices following changes in their laws that ended payday loans. Auto loans, pre-paid debit cards and Internet payday lending are alternatives used by the payday loan industry elsewhere to evade the law. For example, pre-paid debit cards have been offered with an interest rate and fees that would exceed Arizona’s annual percentage rate limit of 36 percent.

“We are grateful to Attorney General Goddard for keeping up the good fight to eliminate this industry and support the people of Arizona and their neighborhoods,” said Bishop Henry L. Barnwell, pastor emeritus of First New Life Baptist Church in Phoenix.

“It’s about time the payday loan industry be forced to follow the same rules as all other lenders when making their short-term loans,” said Sunnyslope community leader Christina Plante. “The job of the people isn’t over yet. It will still be our responsibility to work in partnership with the Attorney General’s Office to identify anyone charging triple-digit interest rates.”

The Attorney General’s Office is sending payday loan companies a letter informing them of the “Operation Sunset” initiative and his commitment to vigorously enforce Arizona’s consumer protection laws.

If consumers see violations of the law, they should call the Office’s dedicated Operation Sunset phone line at 1-866-879-5219 or email our offices at operationsunset@azag.gov . They can also visit Facebook at http://www.facebook.com/operationsunset .

Attached is the “Operation Sunset” letter that will be sent to payday lending institutions. For additional information, contact Press Secretary Molly Edwards at 602-542-8019.

letter to lender.pdf
Operation-Sunset.mp3

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(Phoenix, Ariz. – June 8, 2010) Attorney General Terry Goddard today announced that Leslie Spencer Mersky, 64, of Scottsdale, has been indicted on charges of fraudulent schemes and artifices, forgery, theft and aggravated identity theft.

Mersky is the owner of Bankcard Empire of Phoenix, which sold business opportunity packages that often required large upfront fees over the Internet.

Mersky is accused of making fraudulent charges to the credit card accounts of purchasers of Bankcard Empire’s work-at-home business opportunities sold over the Internet.  Bankcard Empire has long been the subject of many consumer complaints about its business practices.  The indictment alleges that at Mersky’s direction, employees of Bankcard Empire would cut and paste the signatures of purchasers of Bankcard’s products into unauthorized credit card payment authorizations.

Bankcard Empire was the target of a search warrant executed two months ago. The U.S. Postal Service, Tempe Police, Phoenix Police, the Arizona Corporation Commission and the Arizona Attorney General’s Office were involved in the investigation.  

This case is being prosecuted by Assistant Attorney General Michael Flynn in Maricopa County Superior Court.

A copy of the indictment and photo of Mersky are attached. For additional information, contact Press Secretary Molly Edwards at 602-542-8019.

MERSKY INDICTMENT- Final
Mersky Booking Photo.jpg

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(Phoenix, Ariz. - June 8, 2010) Stepping up his efforts to prevent home loan rescue scams, Arizona Attorney General Terry Goddard today announced the release of a free, five-and-half-minute educational video that provides useful information about home foreclosure and tips to avoid becoming a victim of scam artists.

The video is available on the Attorney General’s website, www.azag.gov , or on YouTube at http://www.youtube.com/user/AZAttorneyGeneral .  It was made possible by last year’s historic settlement between the State of Arizona and Countrywide Financial Corporation.

“Many families in neighborhoods all across our state are in crisis.  Thousands are at risk of losing their homes to foreclosure.  And the problem is made worse by some unscrupulous companies and individuals who claim they can help consumers keep their  homes, when what they are really doing is stealing money and making the situation even worse,” Goddard said.   

“To help Arizonans avoid being a victim, my office has produced this video and is providing it at no charge. There is valuable information in the video regarding foreclosure prevention and how to spot the scam artists operating in our state.”

The video will be distributed across Arizona to housing counseling offices, faith-based organizations, corporations and non-profit organizations.  Residents can also contact the Attorney General’s Office at 602.542.2123 to request a copy.

Goddard also noted that a new state law, which takes effect July 29, will assist efforts to stop housing scam artists. The new law prohibits "foreclosure consultants" from charging upfront fees for their services.

If you or someone you know is facing foreclosure, Goddard recommends seeking assistance promptly from your mortgage lender or servicer or a government-approved housing counselor. Distressed homeowners can be connected to free counseling services through the Arizona Foreclosure Prevention Help-Line at 1.877.448.1211.  Additional information for homeowners is available through the Attorney General’s Foreclosure Resource Center at http://www.azag.gov/consumer/foreclosure/.

And if you believe you may be a victim of a scam, please contact the Attorney General’s office, Consumer Information & Complaints, 602.542.5763.

For additional information, contact Press Secretary Molly Edwards at 602.542.8019 or video consultant Abbie Fink at 602.957.8881.

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(Phoenix, Ariz. – June 7, 2010) Attorney General Terry Goddard today announced the sentencing of John Frederick Farinas, 39, of Phoenix to 18 years in prison for assisting a criminal street gang and possession of prison contraband. The State alleged at trial that Farinas was a lieutenant in the Mexican Mafia prison gang and had conspired to introduce prison contraband for the profit of gang members in the 4th Avenue Jail in Phoenix.

“This sentence ensures that another member of the Mexican Mafia will be off our streets,” Goddard said. “It shows our commitment to prosecuting organized crime. If you want to operate in Arizona, we will catch you, prosecute you and send you to prison for a long time.”  

In handing out the prison sentence, Maricopa County Superior Court Judge Sam Myers said that an aggravating consideration in his decision was that Farinas had recruited a former criminal defense attorney, Jason John Keller, to smuggle contraband into the jail.  Keller is currently serving a four-year prison term to be followed by seven years of probation for his role in the conspiracy.  Keller allegedly provided the smuggled items to inmates, some of whom are members of a violent criminal street gang, according to court documents.

Last October, Farinas was convicted of conspiracy to commit murder and is awaiting sentencing.  He is also awaiting trial in two separate homicide cases from 2002.

This case was prosecuted by Assistant Attorney General Natalie Huddleston. The Phoenix Police Department’s Gang Squad conducted the investigation.

For additional information, contact Press Secretary Molly Edwards at 602.542.8019.

Farinas Booking photo.jpg

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(Phoenix, Ariz. - June 3, 2010) Attorney General Terry Goddard has filed a lawsuit against Discount Mortgage Relief and Mortgage Relief, LLC, (DMR/MR), based in Scottsdale, and its owners for engaging in allegedly deceptive loan modification services.

The Attorney General’s Office also secured a Temporary Restraining Order that prevents DMR/MR from charging or receiving money for loan modification services and from advertising its services.  A hearing is scheduled for Friday, June 4, to allow Maricopa County Superior Court to determine if this temporary Order should remain in effect.

According to court documents, the number of victims may number in the thousands.       

“I am committed to fighting deceptive practices targeted at homeowners who are struggling to make their payments,” Goddard said.  “Instead of providing assistance, many loan modification companies have been pocketing large upfront fees and failing to obtain any kind of mortgage relief for homeowners. In this past legislative session, my Office championed the passage of SB 1130, which prohibits foreclosure consultants from receiving fees before they provide loan modification or other services.”

The new law prohibiting consultants from collecting upfront fees takes effect July 29.

The lawsuit alleges that at least since July 2009, DMR/MR deceived consumers into paying thousands of dollars for mortgage loan modification services by misrepresenting the company’s ability to help them obtain mortgage relief and save their homes, thereby violating the Arizona Consumer Fraud Act.   

Consumers allegedly paid DMR/MR between approximately $1,350 and $5,000 for loan modification services and were guaranteed results by the company.  

The lawsuit alleges that Discount Mortgage Relief and Mortgage Relief, LLC. violated the Arizona Consumer Fraud Act by:

●   Misleading consumers into believing they were pre-qualified and guaranteed to receive a loan modification through the company’s services.
●   Falsely promising favorable results and telling consumers that any foreclosure proceedings against their homes would stop once they hired the company.
●   Misrepresenting that the company used attorneys to negotiate consumers’ loan modifications.
●   Falsely stating that they were associated with or acting on behalf of the government and associated with or acting on behalf of the consumer’s lender.
●   Falsely stating that the company was “FBI certified”.
●   Misrepresenting the nature of the company’s loan modification services by referring to them as forensic loan documentation audits or analyses.
●   Falsely promising consumers that they would receive a refund of fees if the company failed to get them a loan modification and failing to return fees to some consumers who decided not to hire the company and never signed a contract.

In the lawsuit, Goddard asks the court to order Discount Mortgage Relief/Mortgage Relief to:

●   Refrain from violating the Arizona Consumer Fraud Act.
●   Pay full restitution to all homeowners who paid Discount Mortgage Relief/Mortgage Relief for loan modification services.
●   Pay a civil penalty of up to $10,000 for each violation of the Consumer Fraud Act.
●   Reimburse the Attorney General’s Office for its costs in this matter.  

This case is being handled by Assistant Attorney General Cherie Howe.

The Attorney General recommends that homeowners who are in or facing foreclosure seek assistance promptly from their mortgage lender or servicer or a government-approved housing counselor. Federal, state and local governments offer numerous free resources for distressed homeowners, including the Arizona Foreclosure Help-Line at 1.877.448.1211.  The Help-Line refers consumers to HUD-approved housing counseling agencies who provide loan modification and other services at no cost.   Additional information for homeowners is available at http://www.hud.gov .

For additional information, contact Molly Edwards at (602) 542-8019.

A copy of the complaint and Temporary Restraining Order are attached.

MORTGAGE RELIEF COMPLAINT.pdf
MORTGAGE RELIEF TEMP RESTRAINING ORDER.pdf

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(Phoenix, Ariz. - June 2, 2010)  Attorney General Terry Goddard will host a Senior Anti-Crime University on Thursday, June 24, at St. John Vianney Church in Sedona.

Goddard will be joined by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

“We believe that keeping seniors well-informed provides the best defense against fraud and scams,” Goddard said.  “Protecting seniors has long ranked as a top priority for the Attorney General's Office, and our Senior Anti-Crime University moves our efforts up another notch. I look forward to meeting with seniors and helping them avoid becoming victims of fraud.”

The Senior Anti-Crime Universities are designed to teach attendees to detect scams and avoid fraud and abuse. Each university will offer a half-day of classes in consumer fraud, identity theft, life care planning and health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

The classes are free, but space is limited, so advance registration is required.  To register online or get more information, go to http://www.azag.gov/seniors/sleuths/sacu.html or email SeniorSleuths@azag.gov or call 602.542.2124

Sedona
When: Thursday, June 24
Time: 1 p.m. - 5 p.m.
Where: St. John Vianney Church
180 Soldiers Pass Road
Sedona
Note: Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify scams and fraud and use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, Department of Economic Security Division of Aging & Adult Services, Senior Medicare Patrol (SMP), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.  

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Register Online
SACU Flier Sedona 6-24
AZSeniorSleuthApp- FINAL

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(Phoenix, Ariz. - June 2, 2010)  Attorney General Terry Goddard today recognized the start of Internet Safety Month and urged parents to make online safety part of their summer family discussions.

"Summer brings major changes in school and family activities.  This is the best time for families to discuss Internet safety,” Goddard said.  "With kids home more during the summer, online predators expect they will be spending more time online chatting with their friends, playing games or just exploring the Internet."

The Attorney General and his staff have visited over 200 schools on his Internet Safety School Tour, encouraging parents to talk regularly with their children about how to be safe on the Internet and the importance of telling a trusted adult if something inappropriate occurs online.  This includes sexual discussions, sending explicit photos or videos, sending links to pornography or trying to arrange face-to-face meetings.

Parents and caregivers should carefully monitor how kids use the Internet, including:

●   Checking the websites they use frequently.
●   Searching the social networking sites they visit.
●   Asking to see their online profiles on Facebook, MySpace and other websites and discussing any items they may be posting online.

Additionally, parents and kids need to be mindful that safety concerns now extend beyond home computers to cell phones and laptops.
Goddard also warned parents and teens about the dangers of cyberbullying.  Kids no longer need muscles to bully and torment their peers.   According to Wiredsafety.org, 85 percent of kids say they have been bullied online, but only 5 percent say they would tell their parents about the abuse.

“Bullies are no longer limited to the playground.  It’s very easy to attack someone when you don’t have to see them face-to-face” Goddard said.  “Bullies use chat rooms, email, instant messaging, cell phone calls and websites to embarrass, threaten or intimidate their victims.”  

Here are some tips to protect your child against cyberbullying:

●   Let your children know what online behavior you find unacceptable.
●   Look for signs that your child might be a cyberbullying victim; these could include nightmares, school avoidance or sudden interest in or avoidance of the computer.
●   Block messages from bullies and save evidence that may help identify a bully.
●   If your child continues to receive harassing emails, have them delete their current accounts and help them open a new one. Again, save the evidence in case you need proof.
●   If a cyberbully has posted embarrassing photos or personal information about your child on a website, contact your internet provider for assistance, the website hosting the page, and if necessary, inform local law enforcement to try to get the website removed.
●   If the bully is a fellow student, notify the school and request assistance from the administration and school resource officer.
●   If there are threats or harassment, notify law enforcement.

“Internet safety and preventing cyberbullying are full-time concerns, but during the summer we see a spike in Internet use by teenagers,” Goddard said.  “Early summer is the perfect time for a frank discussion between parents and their kids about internet safety."

For more useful information about Internet safety, please visit the Attorney General’s website at www.azag.gov and see our Internet Safety Guide for Parents and Teens or call the Crime, Fraud, and Victim Resource Center at 602-542-2123.

net-safety

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(Phoenix, Ariz. - May 29, 2010) Arizona Attorney General Terry Goddard today announced that his office will join the multi-state amicus brief in the U.S. Supreme Court Case of Snyder v. Phelps. The brief opposes protests at military funerals and supports the family of Marine Lance Corporal Matthew Snyder, who was killed in Iraq.

“We must respect our military families and support our fallen soldiers,” Goddard stated. “I call on the Legislature to do what’s right and pass a Military Funerals law that protects the honor we owe to our fallen soldiers. We must do everything possible to respect those who give their lives to fight for our freedom.”

More than 40 States have enacted “funeral picketing” or “funeral protest” statutes that regulate the conduct at issue in this case, but Arizona has not.

In Snyder v. Phelps, the United States Supreme Court will review the Fourth U.S. Circuit Court of Appeals decision that reversed a judgment against the Westbro Baptist Church of Topeka, Kansas, whose members have protested over 200 military funerals around the nation. The family of Marine Lance Corporal Matthew Snyder sued the Westbro Baptist Church for intentional infliction of emotional distress and invasion of privacy. The Fourth Circuit Court reversed the judgment because it concluded that the First Amendment protected the defendants’ actions.

“I am very proud to be joining in this national effort supporting these principles. And, call on our Legislature to enact a law that protects the privacy that our military families deserve at a time of grief,” Goddard said.

Military Funerals Amicus Brief

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(Phoenix, Ariz. -- May 28, 2010) Attorney General Terry Goddard today urged lawyers from the U.S. Justice Department not to file a federal lawsuit against Arizona’s new immigration law.

In a meeting at the Attorney General’s Office, Goddard told the federal government’s lawyers that Arizona “needs solutions not lawsuits.” He said that if the federal government decides to bring a lawsuit, “Arizona will fight back.” The new law will take effect July 29.

The Justice Department lawyers came to Phoenix to meet with state officials as a precursor to possibly filing a suit that would challenge the constitutionality of the law, also known as Senate Bill 1070. The federal lawyers made clear that no final decision has been made about filing a suit. Five challenges to the law have already been brought by private plaintiffs.

Goddard will defend the State and himself in the lawsuits. In addition, Goddard today intervened on behalf of the State in a suit brought by a large group of plaintiffs against county officials challenging SB 1070.

Rather than bringing additional litigation, Goddard again urged the Obama Administration to implement comprehensive border reform.

"The people of Arizona are deeply frustrated by the federal government's inability to enact comprehensive immigration reform," he said. "It is time for members of Congress to stop dithering, stop playing partisan politics and address the problem."

For more information, contact Molly E. Edwards at (602) 542-8019.

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(Tucson, Ariz. -- May 26, 2010) Attorney General Terry Goddard today announced the expansion of his Office’s border crime enforcement efforts through the creation of Arizona’s first Border Crime Prosecution Team, made possible by his $94 million recovery earlier this year from Western Union.

The 10-12 person team will be headquartered in Tucson, partially at the federal government’s Intelligence and Operations Coordination Center (IOCC), and will consist of investigators and prosecutors dedicated to fighting border-related crime.
The new team will concentrate on crimes committed by the Mexican cartels involved in the smuggling of drugs, weapons, money and humans across Arizona's southern border. It will conduct investigations into cartel operations with a goal of bringing cartel leaders to justice.

The $94 million recovery from Western Union resolved complex legal actions related to the company's money transfers that the Attorney General's Office alleged were sometimes used for criminal purposes.

"This initiative will bring unprecedented resources and sophistication to our ongoing fight against organized criminal operations on the border," Goddard said. "Our border crime team puts Arizona in a much stronger position to combat the violent cartels that threaten our state and smuggle people and drugs across our border."

The team will be headed by Richard Wintory, a former senior prosecutor in the Pima County Attorney's Office and one of the most experienced border crime prosecutors in the country.

Wintory has received several awards for his legal work, including being named Prosecutor of the Year twice in the past five years. He was given that honor by the Arizona Narcotics Officers Association in 2005 and by his colleagues on the Arizona Prosecuting Attorneys Advisory Council in 2007.

The Border Enforcement Section will work in coordination with the U.S. Department of Homeland Security in the International Operation Control Center (IOCC) in Tucson and will use state-of-the-art intelligence to achieve its mission. The new facility is the epicenter of sophisticated intelligence collection along the border, compiling data as diverse as camera feeds from Predator Drone aircraft to undercover reports from federal agents on both sides of the border.

Goddard also announced that Assistant Attorney General Cameron "Kip" Holmes has accepted the position of Executive Director of the Southwest Border anti-money laundering Alliance (SWBA) staff. The Alliance is a four-state law enforcement entity funded by monies recovered as a result of the Western Union prosecution.
Under Holmes' direction, the Alliance staff will immediately begin distributing at least $50 million in grants for criminal investigations and prosecutions along the U.S.-Mexico border in Arizona, California, New Mexico and Texas.
Holmes was Arizona's lead attorney in the Western Union case and is a nationally known expert in money laundering prosecutions. The Arizona Bar Association honored him with its Distinguished Public Lawyer Award in 2005.
Working together, the Border Crimes Prosecution Team and the SWBA will ramp up law enforcement efforts to disrupt and dismantle the criminal cartels responsible for most border crime.

For more information, contact Steve Wilson at (602) 542-8351.

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(Phoenix, Ariz. - May 27, 2010) Arizona Attorney General Terry Goddard today announced that the Ninth U.S. Circuit Court of Appeals has upheld Arizona’s law that precludes felons from regaining the right to vote until they complete all terms of their sentences.

The Ninth Circuit ruling concluded that Arizona’s law does not violate the constitutional rights of convicted felons. The decision was written by former U.S. Supreme Court Justice Sandra Day O’Connor, who was appointed to join a three-member panel that included Ninth Circuit Chief Judge Alex Kozinski and Judge Sandra Ikuta. Their ruling was unanimous.

Goddard commended the decision as “Important for the protection of crime victims and the rule of law.” He added, “Even first-time felons should not be restored with the right to vote until they have fully paid their debts to society and fully compensated their victims.”

In 2007 and 2008, two lawsuits were filed in federal court challenging Arizona’s laws under the federal and state constitutions and seeking to allow felons to have their right to vote restored more quickly. The plaintiffs argued that the laws violated the Equal Protection Clause of the Fourteenth Amendment.

Plaintiffs in the cases had served prison terms for felony convictions but had failed to pay criminal fines and restitution included in their sentences. They argued that Arizona’s requirement that they pay court-ordered restitution and fines before being restored the right to vote discriminates on the basis of wealth, impermissibly conditions the right to vote on the payment of a fee and violates other federal and state constitutional provisions. The lower courts dismissed the complaints, holding that the challenged laws were consistent with both U.S. and Arizona Constitutions.

The Ninth Circuit panel agreed. “We have little trouble concluding that Arizona has a rational basis for restoring voting rights only to those felons who have completed the terms of their sentences, which includes the payment of any fines or restitution orders,” the decision states.

Under the Arizona Constitution, first-time felons who have completed their prison terms and paid all fines or restitution ordered by the court will have their civil rights restored. Felons with more than one conviction have to make special application to the court for restoration of their rights.

This case was defended by Chief Deputy Attorney General Tim Nelson, Solicitor General Mary O’Grady and Assistant Attorneys General Barbara Bailey and Catherine Stewart. A copy of the ruling is attached.

For additional information, contact Molly Edwards at 602.542.8019.

9th Circuit Opinion 5-27-10

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(Phoenix, Ariz. -- May 25, 2010) Attorney General Terry Goddard announced today that he has been informed by high-ranking administration officials that President Obama will ask Congress for a $500 million supplemental appropriation for enhanced border security and will immediately deploy National Guard troops along the U.S.-Mexico border.

The $500 million appropriation will fund additional law enforcement personnel and state of the art border technology, Goddard said. Details of both decisions have not been released but will be announced soon.

"These decisions are extremely important in the fight against border crime as recommended in my letter to the President last month," Goddard said. "I have been calling for these actions for more than a year, and I'm pleased the Administration is listening."   

Goddard will hold a press conference at 1:30 this afternoon in the third floor conference room at the CAP Center Building, 15 S. 15th Ave., to discuss these developments.  

A copy of Goddard's letter to the President is attached. For additional information, contact Molly E. Edwards at (602) 542-8019.

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(Phoenix, Ariz. - May 19, 2010) Attorney General Terry Goddard today announced that Kacee Sissener, 29, of San Diego, Calif., and formerly of Scottsdale, has been sentenced to two years in the Maricopa County Jail for embezzling over $265,000 from a Scottsdale medical practice. She was extradited to Arizona last year to face criminal charges here.

Judge Roland Steinle of the Maricopa County Superior Court ordered that, in addition to her jail sentence, Sissener be placed on seven years of supervised probation with White Collar terms and pay $265,196 in restitution to her former employer. Sissener had pleaded guilty to fraudulent schemes and artifices, a class 2 felony, and theft, a class 4 felony.

As the office manager of a Scottsdale medical practice, Sissener had access to her employer’s bank account. Over an 18-month period, she embezzled money from the account to pay her personal American Express bills. She purchased high-end purses and other fashion items, spa treatments, computers, vacations for herself and others, all the while receiving her annual salary of more than $80,000. Initially, Sissener transferred $6,000-$10,000 per month to her American Express account; the last six transfers exceeded $16,000 per month.

Judge Steinle ordered Sissener to pay $2,500 monthly in restitution to the victim until all financial obligations are fulfilled. Failure to do so or violation of any of her other terms of probation could result in her being sentenced to prison for up to 16 years.

This case was prosecuted by Assistant Attorneys General Michael Flynn, Gerald Richard and Monica Klapper. Special Agent Ron Gibson was the lead investigator in the case.

A photo of the defendant is attached. For additional information, contact Molly Edwards at 602-542-8019.

Photo of Defendant

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(Phoenix, Ariz. - May 18, 2010) Attorney General Terry Goddard today invited Yuma County homeowners to participate in one of two foreclosure prevention webinars on Thursday, May 27. The first webinar will be conducted in Spanish and will run from 5:30 p.m. to 7:00 p.m. It will be followed by a second webinar in English from 7:30 p.m. to 8:45 p.m.

The program will be hosted by Goddard, the Arizona Foreclosure Prevention Task Force and Fannie Mae. Topics to be discussed include resources provided by the federal Making Home Affordable program, important timelines and options for those facing foreclosure, the dos and donts of loan modifications and red flags that could point to loan modification fraud. The webinars are an important part of Goddards overall effort to protect homeowners.

I will continue to aggressively prosecute those who attempt to defraud Arizonans struggling to stay in their homes, Goddard said. However, I would much rather prevent families from becoming victims in the first place. These webinars will help both English and Spanish speaking Yuma County homeowners identify the steps they need to take when faced with foreclosure.

For more information or to register for the event, go to the Arizona Foreclosure Prevention Task Forces website at http://www.azforeclosureprevention.org/webinar_registration.htm, and see the attached event flyer.

For homeowners who do not have Internet access but wish to participate in the webinars, the AEA Federal Credit Union has agreed to provide free access to the public. To attend the webinars, please contact:

oAEA Federal Credit Union: Sherri Tate (928) 217-7161
1780 S. 1st Ave.
Yuma, Arizona 85364

Additional resources for homeowners, including a Foreclosure Information Workbook, are available for free on the Attorney Generals website. To access this page, go to www.azag.govand click on Foreclosure Resource Center.

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(Phoenix, Ariz. May 13, 2010) Attorney General Terry Goddard today received the Presidents Award from the Arizona Community Action Association for his work protecting consumers in Arizona.

Goddard was lauded for his efforts in directing funds from a multi-state Bank of America settlement to 12 nonprofit housing counseling entities in Arizona to provide assistance for consumers at risk of losing their homes. That settlement is expected to provide up to $245 million in economic relief for an estimated 13,000 Arizonans. Goddard also negotiated a settlement with Ameriquest Mortgage Co. that provided more than $5 million in restitution for over 9,100 Arizona consumers.

With Arizona among the states hardest hit by the foreclosure crisis, a surge in mortgage fraud has followed. Goddard has gone after fraud artists with both criminal prosecution and civil lawsuits. He recently joined U.S. Attorney General Eric Holder in a Mortgage Fraud Summit in Phoenix with federal, state and local law enforcement officials, whose work will be helped with an additional $1.7 million in federal funds to Arizona to fight mortgage fraud. Goddard also has ramped up educational efforts aimed at preventing mortgage ripoffs.

In tough economic times it is more important than ever to combat the scam artists who rob hard working Arizonans of their last dollars, Goddard said. Fighting for Arizona consumers and protecting their rights has always been a top priority for me and the Attorney Generals Office. Arizona is at the center of the housing crisis, and I am committed to continue the fight to keep as many Arizona families as possible out of foreclosure and in their homes.

Each year we have the privilege of honoring a member of our community who has made a significant impact in the lives of vulnerable Arizonans, stated Margarita Leyvas, president of the Arizona Community Action Association. Attorney General Terry Goddard has done an excellent job of this throughout his career as a public servant. He has worked to ensure that consumers are informed about fraudulent practices that vulnerable Arizonans, particularly the elderly, fall prey to. We are proud to be honoring Terry Goddard for his dedication and commitment to Arizona residents.

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(Phoenix, Ariz. -- May 17, 2010) Attorney General Terry Goddard commended the U.S. Supreme Court's decision today that reversed a lower court ruling and affirmed the right of federal officials to hold inmates considered "sexually dangerous" after their prison terms end.

Goddard joined a multi-state amicus brief to the U.S. Supreme Court last year in support of the federal law. That brief noted that the 21 states, including Arizona, had already enacted sex offender civil commitment laws similar to the federal law.

"The U.S. Supreme Court has wisely upheld a federal law that complements and supports Arizona's law," Goddard said. "These laws properly allow for additional confinement of sexually dangerous felons until it is safe to release them."

In 2006, President George W. Bush signed the Adam Walsh Child Protection and Safety Act authorizing the civil commitment of sexually dangerous federal prisoners. Last year, the 4th U.S. Circuit Court of Appeals ruled that Congress overstepped its authority in allowing the additional confinement.

In today's decision, the high court disagreed and overturned the appeals court ruling. Writing for the 7-2 majority, Justice Stephen Breyer said, "We conclude that the Constitution gives Congress legislative power sufficient to enact" the law.

Goddard said he agreed with the public safety argument made by Solicitor General Elena Kagan, who was nominated last week to serve on the U.S. Supreme Court. Kagan, who successfully argued the government's case in front of the high court, compared the government's authority to commit sexual predators to its power to quarantine federal inmates whose sentences have been completed but carry a highly contagious and deadly disease.

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(Phoenix, Ariz. – May 7, 2010) Attorney General Terry Goddard today honored Tucson Assistant Attorneys General Rose Daly-Rooney of the Civil Rights/Litigation Division, Joe Parkhurst of the Criminal Division and Alison Rivchun of the Child and Family Protection Division with Attorney of the Year Awards at the Office’s annual Awards Day ceremony.

Daly-Rooney joined the Civil Rights/Litigation Division of the Attorney General’s Office in January 2006.  Daly-Rooney epitomizes the word "advocate" and works tirelessly for the advancement of civil rights.  Her efforts contribute greatly toward the Civil Rights Division's high reputation among local and national disability rights advocacy groups through her creativity, visionary ideas, and networking.  In the past year, she spearheaded an appeal to the Ninth Circuit Court of Appeals, including a skillful oral argument, regarding a landmark disability rights case seeking to expand access for persons with hearing and sight disabilities in movie theaters.  Last week, the Ninth Circuit reversed the U.S. District Court’s dismissal of the case and ruled that movie theaters must install equipment to display captions and audio descriptions for people with sensory disabilities. This victory makes it clear that the Americans with Disabilities Act (ADA) is about more than just physical access to a public accommodation.

Parkhurst has been with the Attorney General’s Office since 1997 as an appellate attorney and currently serves at Unit Chief of the Criminal Division in Tucson.  His role as a Unit Chief is unique in that he acts as the primary Section representative for issues arising in southern Arizona.  One of his most notable successes came in a U.S. Supreme Court case, Arizona v. Johnson, which resulted in a favorable ruling on an important Fourth Amendment search and seizure issue.  He is known for his highly professional demeanor working with colleagues and members of the criminal justice system and the public.

Rivchun joined the Child and Family Protection Division of the Attorney General’s Office three years ago.  Judges have provided unsolicited praise for her legal representation and professionalism.  She has always shown a strong commitment to child welfare law, demonstrated recently when she handled a case involving three children whose immigration status needed to be resolved before they could be adopted.  Her outstanding legal skills are complemented by the dedication and passion she brings to the Office.

Goddard presented Leticia Cran in the Child and Family Protection Division and Donna Shuman in the Criminal Division with Employee of the Year Awards.  He presented Linda Bohlke, Compliance Officer in the Civil Rights Division, with the Emerging Star Award.

“Our attorneys and staff have excelled in tough economic times,” Goddard said.  “They have improved efficiency, taken on extra responsibilities and sacrificed time with their families to make Arizona a safer place for those we serve.”

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(Phoenix, Ariz. – May 6, 2010) Attorney General Terry Goddard today presented the Office’s Outstanding Team Award to three groups of employees during the annual Awards Day ceremony for the Attorney General’s Office.

One group honored was the Western Union Settlement Team which played a leading role in a four-year investigation that led to a $94 million settlement with the company. The investigation, conducted with other agencies in the Arizona Financial Crimes Task Force, resulted in more than 100 felony counts of facilitation of money laundering. The settlement will provide new resources for law enforcement along the four states that share the border with Mexico to combat the drug cartels and organized crime.

The second group honored was the Staff Training Committee. This group utilizes great teamwork and organizational skills to coordinate training on a wide range of topics, including overviews of various Office sections, Workplace Violence, Records Retention and Disposition, Electronic Case Filings, Consumer Protection, Internet Resources, and Public Records.  Committee members have displayed exceptional dedication by taking on extra responsibilities above their normal workloads.

The third group honored were attorneys and staff who worked on the case of Arizona Association of Providers for the Persons with Disabilities v. State of Arizona.  Last year, the team worked diligently through the challenges of this case, including an emergency hearing in Maricopa County Superior Court and oral arguments before the Arizona Court of Appeals.  This team provided the Department of Economic Security with the highest level of legal representation.   

Goddard presented the Office’s Michael Cudahy Award to Michael Brodksy and Henry Vaci for their outstanding mentoring efforts.  This is the third year the Cudahy Award has been presented.  It honors Cudahy’s 25 years of service to the Attorney General’s Office, including a decade as head of the Criminal Division, and his legacy as an outstanding mentor.  

Brodsky is the Unit Chief Counsel for the Liability Management Section of the Civil Division.  He supervises a team of six lawyers who handle some 220 cases at any one time.  Brodsky works hard to pass on his knowledge and experience in successfully litigating cases to the lawyers in his unit.  The result of his efforts has been a marked increase in the quality of written work and success in the courtroom.

Vaci practiced law for 30 years in Illinois before moving to Arizona in hopes of moving into semi-retirement.  However, he chose to work for the Attorney General’s Office as a Legal Assistant in the Employment Law Section of the Civil Division and has remained in this position for 10 years.  Throughout his career with the AG’s Office, he has mentored both new and seasoned lawyers with analysis of legal issues, trial preparation, case strategy and methods to deal with the unexpected.  

Goddard presented Special Agent Meg Hinchey and Unit Chief Counsel Jennifer Pollock with the Leadership in Action award.  Assistant Attorney General Julia Smock of the Division of Child Support Enforcement was honored with the Career Service award for her 30 years of dedication to the Attorney General’s Office.

“Our attorneys and staff have excelled in tough economic times,” Goddard said.  “They have improved efficiency, taken on extra responsibilities and sacrificed time with their families to make Arizona a safer place for those we serve.”

Goddard also presented the following awards:

Employee of the Year
Charlotte Abram, Child and Family Protection Division
Elaine Boughner, Public Advocacy Division
Jerry Connolly, Finance Division
Elizabeth Gordon, Solicitor General’s Office
Jordanne Mosley, Criminal Division
Susan Noll, Civil Division
Kathy Plitt, Civil Rights Division
Gil Serrano, Employee Services Office

Attorney of the Year
Curtis Cox, Public Advocacy Division
Laurie Hachtel, Civil Division
Cherie Howe, Public Advocacy Division
Brian Luse, Finance Division
Kevin Smith, Child and Family Protection Division
Kathleen Sweeney, Solicitor General’s Office

Emerging Star
Susanne Blomo, Criminal Division
Jennifer Bonillas Child and Family Protection Division
Carrie Brennan, Solicitor General’s Office
Matt Conti, Criminal Division
Susan Myers, Public Advocacy Division
Chad Sampson, Civil Division
Nicole Slusz, Finance Division
April Theis, Finance Division
Ashyea Thompson, Civil Rights Division
Darlene Wood, Child and Family Protection Division

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(Phoenix, Ariz. - May 5, 2010)  May is Older Americans Month and a time to honor the legacies and celebrate the contributions of senior citizens.  This year’s national theme is Age Strong! Live Long!  

To celebrate Older Americans Month, the Arizona Attorney General’s Office will host two Senior Anti-Crime Universities to provide information to help Arizona seniors Age Strong!  

“We believe that keeping seniors well-informed provides the best defense against fraud and scams,” Goddard said.  “Protecting seniors has long ranked as a top priority for the Attorney General's Office, and our Senior Anti-Crime University moves our efforts up another notch. Throughout the month of May, I look forward to meeting with seniors and helping them avoid becoming victims of fraud.”

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others to avoid fraud and abuse. Each University will offer a half-day of classes in consumer fraud, identity theft, life care planning and health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

The Attorney General’s Senior Anti-Crime Universities will be held on Wednesday, May 19, at the Paradise Valley Senior Center in Phoenix, and on Wednesday, May 26, at Estella Mountain Community College in Avondale.   

The classes are free, but space is limited, so advance registration is required.  To register online or get more information, go to http://www.azag.gov/seniors/sleuths/sacu.html or email SeniorSleuths@azag.gov or call 602.542.2124

Event Information

Phoenix
When: Wednesday, May 19
Time: 1 p.m. - 5 p.m.
Where: Paradise Valley Senior Center
17402 N. 40th Street
Phoenix AZ
Note: Event is open to the media.  

Avondale
When: Wednesday, May 26
Time: 8 a.m. - 12 Noon
Where: Estella Mountain Community College
3000 N. Dysart Road
Avondale AZ
Note: Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, Department of Economic Security Division of Aging & Adult Services, Senior Medicare Patrol (SMP), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.  

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Avondale_5-26
ParadiseValley_5-19
SeniorSleuthApplication

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(Phoenix, Ariz. - May 5, 2010) Attorney General Terry Goddard today announced settlements totaling $195,000 in two cases of deceptive advertising by auto dealers.

One settlement was reached with three Steve Coury dealerships: Steve Coury Ford, Lincoln-Mercury, Inc., of Cottonwood; Steve Coury Automotive Family Inc., of Camp Verde; and Steve Coury Buick Pontiac & GMC Truck, Inc., of Cottonwood. These dealerships, which are referred to collectively in the settlement as Steve Coury Automotive, agreed to pay the State $95,000.

The other settlement was reached with Avondale Automotive, Inc., of Avondale, which agreed to pay the State $100,000.  

In the Steve Coury Automotive case, the Attorney General’s Office received complaints from consumers from October 2006 to February 2008 about advertising materials sent out by the dealerships that were alleged to be deceptive or misleading.  As a result, the Office opened a consumer fraud investigation.

According to court documents, the investigation found numerous instances of deceptive advertising by the company in violation of the Arizona Consumer Fraud Act.  Those violations included falsely advertising large discounts off the Manufacturer’s Suggested Retail Price (MSRP) on used vehicles when the MSRP was based on new vehicle prices; the use of contradictory and confusing disclaimers in footnotes buried at the bottom of advertisements or on separate pages; the use of headlines that applied only to one vehicle in a sale; false advertisements claiming guaranteed credit approval, and using game or contest promotions that required consumers to purchase a car to participate in the game or claim a prize.

According to the settlement, which comes in the form of a Consent Judgment and does not constitute an admission of wrongdoing, Steve Coury Automotive agrees:

●   To engage in truthful, non-misleading advertising.
●   To identify the number of vehicles to which an advertised special offer applies.
●   Not to use MSRP prices as a comparison price for used cars.
●   Not to create the false appearance that a consumer is receiving a check in a mailed advertisement.
●   Not to deceptively use terms that indicate a sale is an “emergency sale,” “liquidation sale” or “official” event.
●   Not to imply that credit is available to all applicants.
●   Not to advertise that all vehicles must be sold, unless all vehicles will be sold by the end of the sale, regardless of price.
●   Not to advertise a sweepstakes or a chance to win cash or prizes that requires the purchase of a vehicle.
●   Not to offer a prize that requires a shipping, handling or processing fee without   disclosing the fees and terms in the advertisement.

In the Avondale Automotive case, the State alleged that from November 2005 to 2009, the dealership engaged in various unlawful and deceptive practices relating to the sale and advertisement of new vehicles in violation of the Arizona Consumer Fraud Act.  The major deceptive practices alleged were the failure to sell specific vehicles at advertised prices and a variety of deceptive advertisements.

Additionally, Avondale Automotive advertised vehicles that were not available for sale, used MSRP as a reference price for used vehicles, falsely represented the vehicles as part of a specially discounted liquidation or clearance event and failed to provide statutorily required disclosure of prior sales of new vehicles.  

The Consent Judgment includes terms to prevent deceptive practices, requiring Avondale Automotive to provide summaries of the injunctive terms to third-party marketers and to provide training to sales staff and managers.

“Arizona law requires that car dealers advertise honestly,” stated Goddard.  “In these tough economic times, it is especially important that dealers not promise sweepstake prizes that they don’t deliver or ‘bait and switch’ customers by advertising guaranteed credit approval, steep discounts, low monthly payments and low interest rates that no one actually receives."

Assistant Attorney General Rebecca Salisbury prosecuted the Steve Coury case. Assistant Attorney General Robert A. Zumoff prosecuted the Avondale Automotive case.  Copies of the consent judgments and complaints are available on the Attorney General’s website, www.azag.gov .

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504, or outside the Phoenix and Tucson metro areas at 800.352.8431.  Consumers can also file complaints online by visiting the Attorney General’s website at www.azag.gov .  To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help.

Copies of the Consent Judgments are attached. For more information, contact Molly Edwards at 602.542.8019.

Avondale Automotive lodged consent judgment
CONSENT JUDGMENT
Auto Dealers

###

(Phoenix, Ariz. - May 4, 2010) Attorney General Terry Goddard today announced that he has filed a lawsuit against Allstar Moving & Storage, Inc., of Chandler, for multiple violations of the Arizona Consumer Fraud Act, including deceptive advertising practices.

The complaint also names the company’s president, Mohamed Elsayed, and its general manager, Amru Abdalla, as defendants.

For the past two years, the company advertised its services in monthly direct mail packets such as Savvy Shopper, Clipper, and ValPak that were distributed to Arizona consumers.  The direct mail advertisements stated that Allstar provided “High Quality Service Without The High Prices” and prominently featured two hourly rates for its moving services.  

Contrary to Allstar’s advertising, the company allegedly added charges to consumers’ invoices, including fees for fuel, truck cleaning, a “sales tax” on the base moving charge, and a surcharge referred to as a “SPE tax” charge.  Allstar also advertised that it hired experienced movers when, in fact, many of Allstar’s movers are alleged to have had no professional moving experience before working for the company.  The company also falsely stated in its ads that it was bonded and insured.

The complaint alleges the company, which also operated under the name Always Moving & Storage, violated the Arizona Consumer Fraud Act by:

    ●   Falsely representing what it would charge consumers by adding undisclosed fees to consumers’ invoices such as fuel, truck cleaning and fictitious taxes.
    ●   Falsely advertising that the company was bonded.
    ●   Failing to disclose that its insurance only covered a fraction of the value of any  property damaged or destroyed by Allstar

The lawsuit, filed in Maricopa County Superior Court, asks the defendants to pay a fine of up to $10,000 for each violation of the Consumer Fraud Act.  Assistant Attorney General Cherie L. Howe is prosecuting this case.

“Arizonan consumers must be treated fairly and not charged a lot of hidden fees,” Goddard said. “When businesses play by the rules, the market is more competitive, and consumers win.”

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602-542-5763, in Tucson at 520-628-6504, or outside the Phoenix and Tucson metro areas at 1-800-352-8431.  Consumers can also file complaints online by visiting the Attorney General’s website at www.azag.gov .  To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help.

A copy of the lawsuit is attached. For more information, contact Molly Edwards at 602-542-8019.

All Star Moving Complaint

###

In 2006, the Attorney General filed a lawsuit against Harkins Theatres on behalf of Arizonans with sensory disabilities. Larry Wanger, a Phoenix resident who is blind, and Rachel Lindstrom whose son, Frederick Lindstrom, is deaf, joined the lawsuit against Harkins. The Lindstrom's were represented by the Arizona Center for Disability law.

The U.S. District Court in Phoenix dismissed the lawsuit in 2008, concluding that the Americans with Disabilities Act (ADA) and the Arizonans with Disabilities Act (AzDA) do not require movie theaters to provide captions and descriptions. The State appealed that decision to the Ninth Circuit, which today ruled that closed captions and descriptions are auxiliary aids and services included under Title III of the ADA.

Captioning provides the text of the soundtrack of a movie for people who are deaf or hard of hearing. The text is transmitted to a reflector or receiver at the customer’s seat. Audio descriptions provide information about key visual aspects of a movie through descriptions of scenery, facial expressions, costumes, action, and scene changes during pauses in dialogue.

Major movie studios distribute many wide-release movies with captions and/or descriptions, but accessibility is limited to theaters that have installed the equipment. For a look at current movies now showing that are available with captions or descriptions, go to http://ncam.wgbh.org/mopix/. For a video demonstration of how captioning and description technology works, visit http://ncam.wgbh.org/richmedia/media/lionking/.

The Attorney General’s Office received support from many disability and civil rights organizations in appealing the dismissal of this significant legal case that advances the rights of Arizonans with hearing and visual disabilities. The following groups filed briefs in support of the State’s appeal:

• U.S. Department of Justice
• Screen Actors Guild
• The National Association of the Deaf
• Alexander Graham Bell Association for the Deaf and Hard of Hearing
• Telecommunications for the Deaf and Hard of Hearing, Inc.
• Deaf Seniors Association
• National Cued Speech Association
• American Society for Deaf Children
• National Council of Hispano Deaf and Hard of Hearing
• American Academy of Audiology
• Conference of Educational Administrators of Schools and Programs for the Deaf
• American Association of the Deaf-Blind
• American Council of the Blind
• American Foundation for the Blind
• American Association of People with Disabilities
• Disability Rights Advocates
• Disability Rights Education and Defense Fund
• National Disability Rights Network
• Washington State Communication Access Project
• Hearing Loss Association of America
• Arizona Commission for the Deaf and Hard of Hearing
• State and numerous local chapters of Hearing Loss Association in Arizona and Washington
• Association of Late-Deafened Adults
• Rio and Helen Popper, a blind child and her mother, California residents.

“We are gratified that the Ninth Circuit rejected Harkins’ argument that the ADA and the AzDA require only that individuals with disabilities gain entrance to the theater, but not access to the soundtrack or key visual features of the films shown,” Goddard said. “This decision makes it clear that the ADA is about more than physical access to a public accommodation - it is also about ensuring access to the services that the public accommodation provides.”

Assistant Attorneys General Rose Daly-Rooney, Cathleen Dooley and Ann Hobart represented the State in this appeal.

The Arizonans with Disabilities Act prohibits disability discrimination in places of public accommodation, such as movie theaters, hotels, restaurants, retail stores, professional offices and day care centers. People who believe that their civil rights have been violated should contact the Attorney General’s Civil Rights Division for assistance in filing a complaint. Individuals wishing to file a civil rights complaint may call a statewide toll-free number at 1.877.491.5742 or go to www.azag.org to either submit an online complaint or find the nearest satellite office to speak to a community volunteer.

A copy of the Ninth Circuit Court of Appeals’ ruling is attached.

Harkins 9th Circuit

###

(Phoenix, Ariz. - April 30, 2010) Attorney General Terry Goddard will host events May 1-3 to honor Arizona peace officers' killed in the line of duty over the past year.

The fallen officers being honored this year are:

    Officer Chris Marano of the Arizona Department of Public Safety
    Lieutenant Eric Shuhandler of the Gilbert Police Department
    Officer David Wayne Johnson of the Phoenix Police Department

Charity Golf Tournament
The ninth annual golf tournament will be held Saturday, May 1.  The proceeds will benefit the Arizona Peace Officers' Memorial Service and the upkeep of the memorial monument.

When: Saturday, May 1
Check-in from 6:30 a.m. - 7:30 a.m.
Where: Silverado Golf Club
7605 East Indian Bend Road
Scottsdale, AZ

5K Run/Walk
The Annual Peace Officers' Memorial Run/Walk will be held Sunday, May 2.  Pre-run events will start at 7 a.m., followed by the 5K run/walk at 7:30 a.m.  More than 200 runners are expected to participate.  The proceeds will benefit the Arizona Peace Officers Memorial Service and the upkeep of the memorial monument.  Attorney General Terry Goddard will be kicking off the event.

When: Sunday, May 2
7:30 a.m.
Where: Wesley Bolin Memorial Plaza
Phoenix, AZ (17th Avenue and Jefferson Street)
Note: This event is open to the media.

37th Annual Arizona Peace Officers' Memorial Service
The 37th Annual Arizona Peace Officers' Memorial Service will be held on Monday, May 3.

The service will take place at Wesley Bolin Plaza in Phoenix.  Goddard, chairman of the Arizona Peace Officers' Memorial Board, will be joined by Governor Jan Brewer and representatives from law enforcement agencies across Arizona.

The service commemorates Arizona Peace Officers Memorial Day and commences Arizona Peace Officers' Memorial Week honoring officers killed in the line of duty.

When: Monday, May 3
6:00 p.m.
Where: Wesley Bolin Memorial Plaza
Phoenix, AZ (17th Avenue and Jefferson Street)
Note: Media covering the ceremony are asked to set up near the Korean War Memorial.

Please visit the Attorney General’s website at www.azag.gov for more information about the scheduled events.

For additional information about the events, contact Molly Edwards at (602) 542-8019.

POMB Flyer for agencies
POM 2010 Run Application

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(Phoenix, Ariz. - April 30, 2010)  Attorney General Terry Goddard will be hosting a Senior Anti-Crime University at the Pima Community College in Oro Valley on Friday, May 7.   

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others to avoid frauds and abuse. Each university offers a half-day of classes in consumer identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch."

Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html

The classes are free, but space is limited, so advance registration is required.  To register online or get more information, go to the Community & Family tab and click on SENIORS at the Attorney General's Web site ( www.azag.gov ) then click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

Oro Valley
When: Friday, May 7
Time: 1 p.m. - 5 p.m.
Where: Pima Community College
Northwest Campus
7600 N. Shannon Rd.
Tucson, Ariz.
Note: Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.  The Oro Valley Senior Anti-Crime University is partnering with Pima Community College and the Pima Council on Aging.

More information about each of these events is available at:   www.azag.gov/seniors/sleuths/sacu.html

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Register Online
Printable registration form
Printable Sr. Anti-Crime University flyer
Senior Sleuths Application

###

(Phoenix, Ariz -- April 28, 2010) Attorney General Terry Goddard has written a "My Turn" column regarding the current debate over Arizona's new immigration law.  

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(Phoenix, Ariz. – April 26, 2010) Attorney General Terry Goddard has received the 2010 Outstanding Service Award presented by the Region VI of the National Organization of Black Law Enforcement Executives (NOBLE).

This award is given to a public servant who is at the forefront of providing solutions to law enforcement and the community. It was presented Saturday night at the NOBLE Awards Banquet in Tempe.  

“As Attorney General, Terry Goddard has fought to improve the lives of Arizonans -- a commitment he continues as the State's top law enforcement officer," stated Andre Anderson, NOBLE Region VI Vice President. "Since first taking the oath as Attorney General in 2003, Terry has focused on protecting Arizona families."

Goddard has been a long-time advocate and committed leader for the law enforcement community.  He has worked hard to reduce crime by taking action against drugs, weapons and human smuggling. He has taken the lead nationally in enforcement efforts to stop illegal money transfers that finance the Mexican drug cartels. He has fought against cyber crime, especially identity theft and Internet crimes against children. He has sued drug manufacturers and predatory lenders for illegal and unfair business practices. He has pursued consumer fraud lawsuits, which have returned millions of dollars to Arizona consumers and forced significant changes in business practices. He has led the fight against methamphetamine and helped achieve a dramatic reduction in statewide meth use.

Recently, Goddard partnered with U. S. Attorney General Eric Holder on a strategy to intensify the fight to prevent, prosecute and punish mortgage fraud in Arizona.

“Attorney General Terry Goddard is doing something about Arizona’s economic downturn by working to eliminate mortgage fraud,” Anderson said.  “His commitment to our community and his support of law enforcement are why he was selected for this award.”  

“I am honored to have received this award,” Goddard said. “I look forward to working with law enforcement agencies and organizations such as NOBLE to make Arizona safe.”

###

        Seven federal wiretaps approved in the Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed “Operation Vaqueros” for the “Cowboy” attire worn by members of the drug trafficking organization, were unsealed by order of the U.S. District Court.   Twelve people have been indicted on federal conspiracy charges.   In the course of the investigation, 26 people were indicted on federal charges, and 13 on state charges.

         U.S. Attorney Dennis K. Burke, Drug Enforcement Administration (DEA) Special Agent in Charge Elizabeth Kempshall, Immigration and Customs Enforcement (ICE) Special Agent in Charge Matthew Allen, and Attorney General Terry Goddard, were joined by White House Office of National Drug Control Policy Director Gil Kerlikowske at the federal courthouse in Tucson to announce the results of the coordinated investigation alongside numerous federal, state, and local law enforcement officials.

        “As this drug task force operation attests, we will bring greater security to the southwest border by working together – better and smarter, with more proactive intelligence-led investigations that pool resources of federal, state and tribal agencies,” said U.S. Attorney for the District of Arizona Dennis K. Burke.   “We will work with our friends at the County Attorney’s Offices, and the Arizona Attorney General’s Office to prosecute state and federal border crimes.  They have a different set of tools than we do, but a common goal.”

        The 36-month investigation “Operation Vaqueros” has yielded 39 state and federal indictments, and 34 arrests, including one employee of the Cochise County Attorney’s Office,  arrested on January 26, 2010 on state charges she provided confidential information to one of the drug traffickers in exchange for money.  That information was derived from a Title III wiretap, one of seven wires approved for “Vaqueros” as federal agents began honing in on the organization.  Six of those indicted federally remain at large and are believed to be in Mexico. 

                “Today’s actions are yet another strike against the powerful drug trafficking organizations whose tentacles stretch across the Mexico border and into the U.S.”, said DEA Special Agent in Charge Elizabeth W. Kempshall “In Arizona and all across our nation’s Southwest Border, DEA and our partners are determined to find them, shut down their operations, and bring them to justice.”   

        “ICE is committed to working with our law enforcement partners to target the leadership of the smuggling organizations that are responsible for smuggling related violence in our border communities,” said Matt Allen, Special Agent in Charge of ICE Investigations in Arizona.

“The cartel's efforts to infiltrate law enforcement are not limited to Mexico.  They want to do it here as well, and we can't let them," stated Arizona Attorney General Goddard.  “We must and will remain diligent in finding and prosecuting anyone who supports, funds, or aids the cartels."

        “Operation Vaqueros” began in 2007 with information gathered by the U.S. Border Patrol on the method of operation of the DTO, eventually evolving into an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation involving DEA, ICE, FBI, U.S. Border Patrol, Arizona Department of Public Safety, Cochise County Sheriff’s Office, as well as local police from Bisbee, Sierra Vista, and Douglas.

        “In today’s difficult economic environment, close collaboration among Federal, state, and local law enforcement is more important than ever,” said White House Drug Policy Director  Gil Kerlikowske.  “The arrests made here in Arizona show the value of information sharing and coordination.  By working together to reduce drug production, trafficking and use across the Nation, we are making our communities safer and our families stronger.” 

        A conviction for Conspiracy to Possess with Intent to Distribute over 1,000 kilograms of marijuana carries a maximum penalty of life in prison, a $4 million fine or both.  In determining an actual sentence, Chief Judge John Roll will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges.  The judge, however, is not bound by those guidelines in determining a sentence.

        An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt.  An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

        The following individuals were named as co-conspirators in the federal indictment and are charged with Conspiracy to possess with intent to distribute over 1,000 kilograms of marijuana.

Ronaldo Acuna Urcadez, 41 *

Hector David Romo-Morales, 43 *

Luis Marcial Luna-Alamillo, 38 *

Ignacio Alfredo Enrives-Martinez, 44 *

Arnulfo Beltran Sosa, 49 *

Emmanuel Jesus Castro, 31 *

Jorge Adalberto Campos, 30

Magda Leticia Morales, 32

James Angelo Lull, 60

Maria Angelica Rodriguez, 36

Pedro Ballesteros, Jr., 24

Linda Ann Urcadez, 41

*Federal fugitives.  Please contact DEA Sierra Vista at 520-458-3691 or 866-DHS-2ICE with information on the whereabouts of these individuals.

Remaining 27 defendants were load drivers for the organization, and were prosecuted for drug trafficking charges in Federal and State courts (14 Federal prosecutions/13 State charges). 

<<Wanted Poster.pdf>> <<ROMO.JPG>> <<SOSA.JPG>> <<URCADEZ.JPG>> <<CASTRO.JPG>> <<LUNA.JPG>> <<Urcadez.ind.pdf>>

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.usdoj.gov/usao/az/

Goddard joined Giffords and Pima County Sheriff Clarence Dupnik at a press conference this morning in Tucson to announce the measure, co-sponsored by Rep. Brian Bilbray (R-Calif.)  

Stored value devices can be similar to credit cards with monetary value encoded on a magnetic strip. Stored value cards are effective replacements for cash and have many applications for retail purchases. Cell phones that can be used to download prepaid amounts are also included in the bill. The measure would count money stored in these pre-paid cards or other devices as currency. 

"This legislation represents another major step in our ability to crack down on the drug cartels and organized border crime," Goddard said. "Attacking the flow of illicit funds is fundamental to crushing the cartels, and we need to adapt as quickly as they do. As the cartels switch from money wires to other money-transmission devices, our laws must keep pace.”

“This bill is a common-sense solution that will give law enforcement the tools they need to combat money-laundering,” Giffords said. “The narco-terrorists and their drug cartels are wreaking havoc on communities all across Arizona and the nation. My goal with this bill is to tighten the screws and make it significantly more difficult for them to operate.”

The Attorney General’s Office has worked aggressively choke off funds that finance the drug cartels.  Two months ago, Goddard reached a $94 million settlement with Western Union to resolve years of litigation related to the cartels’ use of wire transfers to facilitate smuggling. The settlement includes unprecedented access to data on future transactions that will enable law enforcement throughout the Southwest border to identify and disrupt cartel money transfers as they occur.

The Attorney General’s Office worked closely with Rep. Giffords to craft the language for the bill.

###

(Phoenix, Ariz. -- April 23, 2010) Attorney General Terry Goddard today issued the following statement in response to the Governor signing Senate Bill 1070 into law:

"The bill the Governor just signed does nothing to secure our border or make us safer from the cartel violence behind most border crime," Goddard said. "We need stronger penalties against illegal entry, and I have made specific recommendations to the President for real federal border reform."

###

(Phoenix, Ariz. - April 21, 2010) Attorney General Terry Goddard today announced the sentencing of the owner and managers of two Phoenix area restaurants who were accused of failing to pay overtime wages to employees and then scheming to make it appear the workers had been paid.

The two restaurants, both named Pinata Nueva, are located in Anthem and Scottsdale. The Scottsdale business was recently sold and is under new ownership.

Martin David Gonzales, 40, of Anthem, who owned the restaurants, pleaded guilty to attempted forgery, a Class 5 felony, and was sentenced to two years of supervised probation and 100 hours of community service.  Leonard R. Gallardo Jr., 69, and Frances Lucy Gallardo, 69, both of Scottsdale, managed the restaurants. Each was sentenced to one year probation and 40 hours of community service for tampering with a witness. The corporation, Pinata Nueva LLC of Anthem, was convicted of fraudulent schemes and artifices.

The defendants were jointly ordered to pay a fine of $38,078 to the U.S. Department of Labor and restitution of $11,247 to the employees.

The case was investigated by the U.S. Department of Labor's Wage and Hour Division. The investigation determined that the restaurants owed back wages totaling $38,078 to 38 employees for unpaid overtime. It also found that that restaurants had signed an agreement to pay the employees the money they were owed. According to the Labor Department investigators, Gonzales initially asserted that the firm had paid the wages, but he provided false documents as proof of payment.

In October 2006, the defendants issued back wage checks, and Leonard Gallardo Jr. escorted employees to a local bank where the workers were told to endorse the checks and redeposit them into the restaurants’ accounts. Alerted to the kickbacks, the Labor Department referred the case to the Arizona Attorney General's Office.  After Gonzales learned the Attorney General’s Office was working on the case, he repaid a portion of the back wages to some of the employees.

“Any employer who fails to pay workers the money they have earned and lies to the government about it will be held accountable,” Goddard said. “We won’t tolerate such mistreatment, and I’m glad we were able to recover the lost wages.”

"The Wage and Hour Division will pursue strong action against employers who deprive workers -- especially those working low-wage jobs such as in the restaurant industry -- from their hard-earned pay," said George Friday Jr., regional administrator of the Labor Department's Wage and Hour Division in San Francisco. "We appreciate the diligence of the Arizona State Attorney General's Office in taking up this case and ensuring that justice was served for these vulnerable workers in Arizona."

This case was prosecuted by Assistant Attorney General Todd Lawson.

For additional information, contact Molly Edwards at 602-542-8019.

###

(Phoenix, Ariz. - April 20, 2010) Attorney General Terry Goddard today issued two substantive letters urging action to strengthen federal immigration laws and border security.

In a letter to the Arizona Cattle Growers Association, Goddard gave his support for the cattlemen's call to make the act of crossing the nation's borders illegally a federal felony.  

"In the post-9/11 world, our nation's security requires strict laws against, and stern punishments for, those who try to cross our borders undetected," Goddard wrote.

Goddard included this call, along with a host of other border reform ideas, in a letter to President Barack Obama and Homeland Security Secretary Janet Napolitano. Goddard urged:

-- Tougher federal laws, including felony status for future illegal entries and enhanced federal employer sanctions.

-- Stronger domestic enforcement through additional Border Patrol agents, increased funding for law enforcement and full reimbursement of state costs for incarceration.

-- Stronger enforcement in Mexico through better cooperation with, and training of, Mexican prosecutors.

-- Better communications infrastructure, crime reporting, modeling and analysis.

-- Reducing the demand for illegal labor in the U.S. by better matching lawful immigration flows with actual employment needs.

-- Eliminating cartel profits through enhanced money-laundering laws and new rules regulating stored value devices.

In his letter to the President, Goddard said he recognizes the political difficulty of undertaking federal border reform because "the emotions underlying this issue are raw and real." But, he wrote, "failing to act is not an option. It would lead not only to further frustration and cynicism, but to greater border violence and serious threats to our national security."

Goddard's letters come on the heels of the Arizona Legislature's controversial passage of Senate Bill 1070, an immigration bill he does not support.

"This bill does nothing to improve border security or address the core causes of illegal immigration," Goddard said. "It also would take law enforcement resources away from stopping more serious crimes. We need meaningful federal border reforms, and we need them now."  

Copies of the two letters are attached.

ACGA Letter.pdf
Federal Border Reform Letter.pdf

###

(Phoenix, Ariz. - April 19, 2010) Attorney General Terry Goddard today presented his Office’s 2010 Distinguished Service Awards to victims’ rights leaders in Arizona for their outstanding service to crime victims.

“Today we pay special tribute to those who provide services to crime victims and have shown leadership, innovation, and commitment to improving services,” Goddard said.  “These men and women are shining examples of the extraordinary efforts made every day to be sure that victims are treated with fairness, dignity and respect."

Arizona Supreme Court Chief Justice Rebecca W. Berch and U. S. Attorney Dennis K. Burke also addressed the honorees at today’s ceremony at the Carnegie Center, adjacent to the Attorney General’s Office in Phoenix.

Maricopa County Superior Court Judge Roland Steinle received the Distinguished Service Award for Innovative Practices for his unique program in the collection of delinquent restitution payments for crime victims. The new program’s inspiration came from the process for collecting late child support payments in family court, which has been highly successful. The concept has received national attention, and Judge Steinle has been invited to Washington D.C. to speak about the program to the National Center for Victims of Crime. To date, the Restitution Court has ordered over $200,000 in delinquent restitution for crime victims.

Goddard also presented the Public Policy Distinguished Service Award to Bobbi Sudberry from the Arizona Coalition against Domestic Violence and co-founder of “Kaity’s Way”.  Bobbi lost her daughter tragically to dating violence and has been instrumental in getting Kaity’s law enacted in honor of her daughter, Kaitlyn.

Distinguished Service Awards for Leadership were presented to Dr. Neil Websdale, professor of criminology and criminal justice at Northern Arizona University, and Sue Rutherford, executive director for the Trauma Intervention Program (TIP) of Arizona.

In 2008, through a Governor’s Office initiative to protect domestic violence victims, Dr. Websdale created the fatality review teams to make system changes that would safeguard victims and prevent domestic violence-related deaths.  Dr. Websdale has authored books on domestic violence, worked as a past national director of the Domestic Violence Fatality Review initiative and  helped craft legislation giving review teams legal protection.  

Sue Rutherford was instrumental in creating the Yavapai Chapter of the Trauma Intervention Program of Arizona. This group of trained volunteers provides emotional aid and practical support to victims and their families following a traumatic event.  Additionally, she implemented the first automatic call system for TIPs in the country. Working with various agencies, they developed a system where specific types of calls are automatically dispatched by the 911 system at the same time police and fire are dispatched. This has tremendously improved response time.

The Distinguished Service Award for Service Collaboration was presented to the F.B.I. Phoenix Division’s Squad C-4.  Supervisor Special Agent Julie A. Halferty of this squad formed the Securities Fraud and Mortgage Fraud Task Force to address the plight of crime victims. These multidisciplinary teams, comprised of law enforcement agencies, the I.R.S., lending institutions, the US Postal services and the Arizona Corporation Commission have coordinated efforts to combat mortgage and securities fraud that has swept Arizona.   

Finally, the Distinguished Service Award for Advocacy and Direct Service was presented to Pamela Turner for her work with the Northern Arizona Center against Sexual Assault (NACASA).  In 2001, she led the charge to establish NACASA, the first program of its kind in this region to serve three counties, the Navajo and Hopi nations and the Grand Canyon National park.

To reach the Attorney General’s Office of Victim Services, please contact victimservices@azag.gov  or (602) 542-5025. Additional information is available at the Attorney General’s Office Web site, www.azag.gov.

Victims-Rights-Celebration.mp3

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(Phoenix, Ariz. - April 16, 2010) Attorney General Terry Goddard joined other state elected officials and business leaders on an economic development trip to Washington, D.C., April 12-14. He has written the 'My Turn' column below that talks about the trip and especially the delegation's efforts to help Luke Air Force Base be selected as a training base for the next generation of Air Force fighter jets.

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The Alliance, formed as a result of the states' unprecedented settlement with Western Union earlier this year, has been charged with developing the strategy for law enforcement grants to block the flow of illegal money transfers that have facilitated human, drug and arms smuggling operations across the border.

The Western Union settlement will provide $50 million in grants to federal, state and local law enforcement agencies throughout the Southwest border area.

Arizona Attorney General Terry Goddard addressed the group this morning, calling the Alliance "an historic opportunity for law enforcement to work cooperatively across state and national borders to fight and eliminate the international cartels that have fueled border violence."

This week's meeting, which included some 100 law enforcement officials from both the U.S. and Mexico, was focused on developing a comprehensive strategy to guide the grant-making process. A final plan, based on the information exchanged at this conference, will be announced in the coming weeks. The Alliance will solicit grant applications shortly after the strategy document has been adopted.

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(Phoenix, Ariz. - April 16, 2010) Attorney General Terry Goddard today announced a number of initiatives to commemorate National Crime Victims Rights Week, which begins Sunday, April 18.

This year’s theme - “Victims’ Rights: Fairness. Dignity. Respect.” pays tribute to crime victims and the ideals that inspired the victims’ rights movement. The theme also recognizes the ongoing efforts of countless victim service providers, criminal justice professionals and volunteers who dedicate their lives to helping crime victims.

“Our office is committed to continuing to educate and advocate for victims of crime,” Goddard said. “Our challenge is to make sure crime victims know their rights. Every victim deserves respect, compassion and assistance to recover from the impact of a crime, as well as access to and support from the criminal justice system.”

There are many programs available for victims of crimes such as crisis intervention, counseling, safety planning and advocacy. One of the Attorney General’s key initiatives has been the creation of the Victims’ Rights Advisory Committee to guide the efforts of his Office in shaping policy and providing victims’ services.

Over this next week, the Attorney General’s Office will be hosting several events to honor victims’ and their rights:

● Commemorative Victims’ Rights Awards - Monday, April 19, at Carnegie Center, 1101 West Washington, Phoenix. Arizona Attorney General Goddard will host a commemorative Victims’ Rights Week award ceremony. The event will honor those who have helped the Attorney General’s Office fight crime and serve crime victims throughout the state. Arizona Supreme Court Chief Justice Rebecca W. Berch and United States Attorney Dennis K. Burke will also speak at the event.

● Bravery Project - Beginning on Sunday, April 18, the Attorney General’s Office and Arizona State University will be promoting the Bravery Project, “For Our Eyes - Community Cohesion: Bonds, Bridges, and Barriers.” Artist and founder Vickie Florschuetz helps victims break the silence by volunteering to share their accounts through a unique portrait process that tells their story. ASU Downtown Campus University Center, 411 N. Central Ave. 2nd floor, Phoenix. For more information about the Bravery Project, visit www.braveryproject.org.

● Victims Impact Panel Forum - The Attorney General’s Office and Arizona State University will host a panel forum on Tuesday, April 20, from 5:30 to 7:30 p.m,, ASU Downtown Campus, 424 N. Central, Phoenix. The event will feature Arizona Supreme Court Justice Michael D. Ryan; Dan Levey, director of the Attorney General’s Office of Victim Services; Silvia Conchos, victim specialist with the FBI; and ASU Law Professor Robert J. Kane. The panel will discuss the impact of victims’ rights on the criminal justice system, the progress of the victims’ rights movement and ways to strengthen the movement.

The Attorney General’s Office has developed partnerships with the Arizona Coalition for Victim Services, Arizona Coalition Against Domestic Violence, Valley of the Sun Parents of Murdered Children, Inc. (POMC), Arizona Child & Family Advocacy Network, Mothers Against Drunk Driving, and Homicide Survivors to the fight for victims rights.

“Victims’ voices are often silent and their rights are overlooked,” Goddard said. “This is a week when we acknowledge and recognize that victims exist, have voices and have rights.”

Many other events around the state will also honor Victims’ Rights Week. Attached is the Crime Victims Brief listing some of those events, along with the invitation for the Victims Impact Panel Forum on April 20.

For more information about victims’ rights, please visit our website at www.azag.gov/victims_rights/ or contact Molly Edwards at 602-542-8019.

VRW2010
Victims Rights Brief April
Victims Rights Week Flyer 2010

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(Phoenix, Ariz. - April 9, 2010) Attorney General Terry Goddard today announced that the Arizona Court of Appeals has affirmed the guilty verdicts and penalties against Far West Water & Sewer of Yuma in a case stemming from the deaths of two Yuma sewer workers in 2001.

In a 2005 trial, a Yuma County jury convicted Far West Water & Sewer of five felonies: negligent homicide, causing the death of an employee by knowing violation of a safety standard, aggravated assault and two counts of endangerment.  A Far West employee, James Gamble, and an attempted rescuer, Gary Lanser, died in the incident.  Far West employee Nathan Garrett, who also tried to rescue Gamble, suffered severe lung damage.  Gamble and the others collapsed in a sewer tank near Mesa del Sol Golf Course in Yuma on Oct. 24, 2001, when they were overcome by sewage gas.  

In its appeal, Far West argued that the State's criminal prosecution "went beyond the statutory scheme for liability of a corporation" and that the case "at most gives rise to civil liability, but not criminal liability." The Court of Appeals soundly rejected that contention, stating, "We conclude...that its conduct went far beyond ordinary civil negligence or even gross negligence and crossed the line into criminal conduct."     

In its opinion, the Court stated that the evidence showed that Far West "did not provide its employees with required training” and had “made no attempt to even minimally comply with OSHA regulations.”  The Court concluded that Far West’s safety program was “virtually non-existent.”  Its decision also noted that Far West “did not hold safety meetings and had no written safety policies or written records regarding safety training.” The Court added that Far West “did not have necessary rescue equipment available” and “had no capability of rescuing anyone.”

The Court of Appeals rejected every legal argument Far West offered, specifically confirming that the Yuma County Superior Court’s sentence of a fine of $1,770,000 was not excessive.   

“This tragedy was unnecessary," Goddard said. "Two people died, another still suffers from lung impairment, and other lives were affected by Far West’s disregard for required safety precautions.  We were confident that the jury properly convicted Far West, and we are pleased that the Court of Appeals affirmed each of the five felony convictions.”  A copy of the Court of Appeals decision is attached.

Opinion re State of Arizona v. Far West Water & Sewer, Inc. - Affirmed
Far-West.mp3

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(Phoenix, Ariz. - April 8, 2010) Attorney General Terry Goddard announced that Fernando Calderon-Suazo, 34, and Alberto Prieto-Molina, 24, both of Phoenix, received prison sentences today in Maricopa County Superior Court for the illegal sale of hand grenades and a rifle.

According to court documents, Calderon-Suazo and Prieto-Molina engaged in discussions and negotiations last November with an undercover agent from the Attorney General’s Office. The agent posed as an arms buyer for the Mexican drug cartels and purchased 23 hand grenades and one rifle for $8,740.

The hand grenades had the appearance of being fully operational, but it was later determined by the Department of Public Safety’s explosives experts that the grenades had been rendered inoperable. DPS noted, however, that this was not readily apparent to the untrained eye and the grenades, as presented, appeared fully functioning.

“This case further demonstrates the importance of securing our borders against the drug cartels,” Goddard stated. “These individuals were attempting to profit from border violence and that is not tolerable.  Our office will continue to aggressively prosecute these types of cases.”

Prieto-Molina was sentenced to two years in prison for attempted misconduct involving weapons, a class 5 felony. This term will be followed by three years of supervised probation.

Calderon-Suazo was sentenced to two-and-a-half years in prison for misconduct involving weapons, a class 4 felony. This term will be followed by three years of supervised probation.

A third defendant, Jesus Rodriguez-Avena, 19, of Phoenix has been placed on supervised probation for his lesser role in these crimes.

Each defendant has been ordered to pay restitution to DPS in the amount of $8,740 to cover the money spent purchasing the weapons.  Additionally, each defendant has been ordered to pay $1,000 to the Anti-Racketeering Revolving Fund.  

Assistant Attorney General Michael Flynn prosecuted this case in Maricopa County Superior Court.  For more information, contact Molly Edwards at 602-542-8019.

Photo of Prieto-Molina
Photo of Calderon-Sauzo
Hand Grenade Sentencing.mp3

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(Phoenix, Ariz. - April 8, 2010) Attorney General Terry Goddard announced that the Arizona Financial Crimes Task Force is receiving a national award today from President Obama’s Office of National Drug Control Policy (ONDCP) and High Intensity Drug Trafficking Area program (HIDTA) for reaching a $94 million settlement with Western Union earlier this year.  

The prestigious “Outstanding Financial Investigative Effort Award” honors the collaboration of law enforcement agencies that work to combat criminal organizations, both nationally and internationally.  The Financial Crimes Task Force is a cooperative organization made up of the Arizona Attorney General’s Office, Phoenix Police Department, Arizona Department of Public Safety and U.S. Department of Homeland Security.

“Our Office and our law enforcement partners worked tirelessly on the Western Union case for years,” Goddard said.  “This type of dedication and commitment has allowed us to disrupt the transfer of millions of dollars that would have otherwise flowed into the pockets of the criminal cartels.  Those cartels continue to pose a huge threat to the safety and security along the border.”

From 2003 to 2009, task force members determined that drug and human smugglers were using specific money transfer agents, predominantly Western Union, to move their money across the border.  The task force was able to target the illegal money transfers, obtain seizure warrants and seize more than $12 million over a two-year period, which was directly tied to drug or human smuggling organizations.  

Two months ago, the Attorney General’s Office announced the groundbreaking, $94 million settlement, which will provide substantial new resources for law enforcement authorities in the four Southwest border states to combat illegal activity along the entire U.S.-Mexico border.  

Under the agreement, Western Union has begun paying $21 million to the State of Arizona and $50 million to a non-profit organization that will fund law enforcement agencies in the four Southwest border states to enhance anti-money laundering efforts.

The company also committed $19 million over the next several years to strengthen its own anti-money laundering efforts.  The settlement will provide $4 million to $6 million to support a court -appointed monitor who will ensure that Western Union complies with its internal anti-money laundering obligations.  Additionally, as part of the settlement agreement, the Arizona Attorney General’s Office is in the process of creating the first-ever Border Enforcement Section to strengthen the efforts of the agency to combat criminal activity along the Mexican border.

This award is the second high-profile honor the Financial Crimes Task Force has won in the past two years. In 2008, it received one of the top accolades in law enforcement, the International Association of Chiefs of Police Choice Point Award for Excellence in Criminal Investigations. The award was given to honor a year-long investigation called “Operation Fly-by-Night” that led to the indictment of 16 people and the breakup of a large human smuggling operation in Arizona.

For more information, contact Molly Edwards at 602-542-8019.

Western-Union-Audio 4-8-10.mp3

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(Phoenix, Ariz. - April 7, 2010) Attorney General Terry Goddard issued the following statement today after the Arizona Senate Finance Committee removed H.B. 2035 from its agenda. The bill was the latest effort by the payday loan industry to stay in business in Arizona.

“As Attorney General, I have consistently fought against predatory lending practices. Payday loans prey on hard-working Arizonans who find themselves with a short-term need, trapped in long-term debt. This is bad policy. This industry hurts not only consumers, but also our state’s economy. I applaud the members of the Senate Finance Committee, both Republicans and Democrats, who were ready to vote down this latest end run by the payday lenders. Should any payday lenders in this state attempt to continue offering 400 percent loans beyond June 30, I encourage the citizens of Arizona to contact my Office.”

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(Phoenix, Ariz. - April 7, 2010) Attorney General Terry Goddard has today announced a lawsuit alleging deceptive business practices against Vahe Zakaryan, 45, of Glendale, Calif., whose business operated under the name of Board of Business Compliance. The lawsuit is the latest action in the Attorney General’s crackdown on deceptive businesses.

The lawsuit alleges that from July to November in 2008, the Board of Business Compliance led corporations to believe that its mailed solicitations “required response and payment or the shareholders would not be in compliance with Arizona law, and could be held liable for corporate debts and obligations.”

The solicitations stated that each business needed to pay fees in the amount of $125 for the preparation of annual minutes. The form enclosed with the solicitation looked official and included the “Corporation Number” assigned to the business by the Corporation Commission. However, the address was a private mail box located at a Phoenix UPS store and not the address of the Arizona Corporation Commission.

Over a five-month period, Zakaryan collected $68,000 from 552 Arizona corporations.

“I am committed to fighting scam artists who target legitimate Arizona businesses,” Goddard stated. “Business owners completed the Board of Business Compliance form and paid the fee in good faith, believing it was required by law, only to end up lining the pockets of an individual who provided no service whatsoever.”

The lawsuit alleges that the actions of the Board of Business Compliance violated the Arizona Consumer Fraud Act by:

• Operating under a fictitious business name which was designed to resemble the name of a government entity.
• Misleading businesses into filing a form and submitting $125 payment for annual minutes to comply with a non-existent Arizona law.

In the lawsuit, Goddard asks the court to order Vahe Zakaryan to:

• Refrain from violating the Arizona Consumer Fraud Act.
• Refrain from operating or soliciting any future business services in Arizona.
• Pay full restitution to all Arizona businesses that paid the fee.
• Pay the State of Arizona a civil penalty of up to $10,000 for each violation of the Consumer Fraud Act.
• Reimburse the Attorney General’s Office for its costs of investigation and legal fees incurred in this matter.

Assistant Attorney General Rebecca Salisbury is prosecuting this case.

The Attorney General’s Office filed a similar lawsuit last September against Y.M.S., Inc., a Nevada corporation doing business as “Arizona Corporate Headquarters,” its president and vice president. The defendants are accused of collecting more than $350,000 in fraudulent $125 fees from some 2,800 Arizona businesses. That suit is still in discovery.

If you believe you have been a victim of fraud, please contact the Attorney General’s Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504 or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout Arizona with volunteers available to help. Locations and hours are posted on the Attorney General’s Web site, www.azag.gov. An online complaint form is also posted on the Attorney General’s Web site.

A copy of the lawsuit is attached. For additional information, contact Molly Edwards at 602-542-8019.

Board of Business Complaint

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(Phoenix, Ariz. - April 5, 2010) On average, one child is abused or neglected every hour in Arizona. Last year, Arizona Child Protective Services received more than 33,000 reports involving the alleged maltreatment of some 49,000 children. Nationally, five children die every day from child abuse.

Those grim statistics give Attorney General Terry Goddard good reason to call attention to National Child Abuse Prevention Month and Tuesday’s Arizona Day of Hope Event at the State Capitol.

“Every child deserves to grow up in a nurturing and caring environment. Sadly, child abuse is an atrocity that continues every day against innocent victims who cannot protect themselves” Goddard said. “Child Abuse Prevention month sheds a light on a problem that has been increasing in our State. We must continue to fight tirelessly through education, awareness and intervention.”

In an effort to heighten awareness of child abuse and provide useful information, Childhelp in partnership with the Child Abuse and Prevention Coalition is hosting the Arizona Day of Hope Event at the Capitol on Tuesday.

Event Details

When: Tuesday April 6
Time: 10 a.m. to 1 p.m. -- Informational booth expo
10:30 a.m. -- Press Conference
Where: AZ State Capitol -- Senate Lawn
1700 W. Washington, Phoenix, Ariz.

The Child Abuse Awareness and Prevention Coalition is a multidisciplinary effort to raise awareness and prevent infant and toddler homicide and abuse in Arizona. Over 56 agencies are involved in the coalition, bringing together government, the private sector and nonprofits to fight against child abuse.

The coalition was started after the death of three-year-old Schala Vera of Chandler, who died August 31, 2009, after she was beaten by her mother’s boyfriend. She died behind a toilet trying to hide from her attackers.

The Attorney General's Office provides comprehensive legal representation to the Department of Economic Security on behalf of abused and neglected children and in support of Child Protective Services' efforts to protect children, preserve families and achieve permanency for Arizona's kids.

If you suspect child abuse, call the Arizona Child Protective Services toll-free child abuse hotline: 1-888-SOS-CHILD (1-888-767-2445).

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(Phoenix, Ariz. - March 30, 2010)  Attorney General Terry Goddard will be hosting Senior Anti-Crime Universities on Wednesday, April 7, at the La Posada in Green Valley and Pima Community College in Oro Valley on Friday, May 7.   

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others to avoid frauds and abuse. Each university will offer a half-day of classes in consumer identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch."

Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html

Space is limited, so advance registration is required.  To register online or get more information, go to the Community & Family tab and click on SENIORS at the Attorney General's Web site ( www.azag.gov ) then click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

Green Valley
When: Wednesday, April 7
Time: 8 a.m. - 12 Noon
Where: La Posada
635 Park Centre Ave.
Green Valley, Ariz.
Note: Event is open to the media.  

Oro Valley
When: Friday, May 7
Time: 8 a.m. - 12 Noon
Where:  Pima Community College
Northwest Campus
7600 N. Shannon Rd.
Tucson, Ariz.
Note: Event is open to the media.


The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.  The Sun Lakes Senior Anti-Crime University is also partnering with New Adventures in Learning and the Chandler-Gilbert Community College.

More information about each of these events is available at: www.azag.gov/seniors/sleuths/sacu.html

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Register Online
Printable registration form
Printable Sr. Anti-Crime University flyer
Senior Sleuths Application

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(Phoenix, Ariz. - March 29, 2010) Attorney General Terry Goddard issued the following statement today regarding Gov. Brewer's decision to call the Arizona Legislature into special session to consider joining a lawsuit seeking to overturn the federal health care law.

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(Phoenix, Ariz. - March 25, 2010) Arizona Attorney General Terry Goddard and U.S. Attorney General Eric Holder today pledged a broad and intensified fight to prevent, prosecute and punish mortgage fraud in Arizona, aided by an additional $1.7 million in federal funding.

The money for Arizona is a big share of an additional $8 million the U.S. Department of Justice will spend nationally this year to step up mortgage fraud enforcement.

“Arizona’s economic recovery lags the rest of the nation in large part because of the foreclosure crisis and the high volume of housing fraud here,” Goddard said. “My Office has been cracking down on bad actors who prey on struggling Arizona families, and our partnership with federal law enforcement will bring even more resources to this fight.”  

Holder, who said mortgage fraud has reached “crisis proportions” nationally, noted that the FBI is working on some 2,800 housing fraud cases across the country, including 400 in Arizona.

“We’re using every tool at our disposal, and we will use the information gathered here today to focus and strengthen our efforts,” Holder said. “To those who would engage in mortgage fraud schemes, from executives in major lending institutions to individual scam artists, I have one message: “You will be found, you will be prosecuted, and you will be punished.”   

Today’s summit included sessions on mortgage fraud trends in Arizona and the impact of fraud on families and communities. In a private afternoon session, task force members met with law enforcement and regulatory officials.

Metropolitan Phoenix ranks fourth in the nation for the number of Suspicious Activity Reports (SARs) filed by financial institutions concerning suspected mortgage fraud. Arizona ranks No. 1 nationally in foreclosures of homes funded by the Federal Housing Administration.

The Financial Fraud Enforcement Task Force includes representatives from a number of federal agencies, regulatory authorities and state and local law enforcement. Working together, they bring a strong array of criminal and civil enforcement resources to combat mortgage fraud.  Today’s summit was the second such event, following a February meeting in Florida, which has the nation’s highest level of housing fraud.

For additional information, contact Molly E. Edwards at (602) 542-8019.

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(Phoenix, Ariz. -- March 24, 2010) Attorney General Terry Goddard said today he will not be joining lawsuits filed by 14 State Attorneys General to overturn federal health care legislation signed into law Tuesday.

Goddard said constitutional law experts on his staff, as well as many other legal scholars around the nation, regard the lawsuits as having little chance of prevailing.

"My Office has carefully examined both the federal health care legislation and the lawsuits challenging it. Our lawyers agree with the overwhelming majority of constitutional scholars of both parties that the lawsuits have little merit and that participating in them would be a waste of scarce taxpayer dollars," Goddard said. "These lawsuits will be considered in federal court with or without Arizona's participation."

"I call upon the Governor to focus Arizona's efforts on restoring KidsCare and requalifying for the billions of federal dollars we will lose if that crucial program is lost," Goddard added.   

Goddard also noted that health care programs in Arizona operate differently than other states, which would complicate factual claims asserted by the States that have joined the lawsuit and could weaken their legal position.  

"Our State's unique and successful AHCCCS program, coupled with our history of waiving certain federal Medicaid requirements and our recent effort to opt out of SCHIP (KidsCare), makes us different from the States filing the suit," he said. "Our facts simply don't match their allegations."

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(Phoenix, Ariz. - March 24, 2010) Attorney General Terry Goddard said today he will join U.S. Attorney General Eric Holder and other members of the recently formed Financial Fraud Enforcement Task Force at a Mortgage Fraud Summit meeting Thursday in Phoenix.

The meeting will be the second such summit held nationally, following one held last month in Miami.  Attorney General Holder is visiting cities around the country hardest hit by mortgage fraud to examine trends, discuss strategies with state and local law enforcement officials and hear from affected community members.  

A press conference will be held at noon, and Goddard will be available to answer additional questions at its conclusion.

Event information

WHEN: Thursday, March 25
Reporters are invited to attend from 9 a.m. to 12:30 p.m.  The press conference will be held at 12 noon.

WHERE: Sandra Day O’Connor United States Court House
401 W. Washington Street
Phoenix, Arizona

CONTACTS:  For additional information, contact Molly E. Edwards at (602) 542-8019.

Phoenix Agenda.pdf

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(Phoenix, Ariz. - March 22, 2010)  Attorney General Terry Goddard will host a Senior Anti-Crime University on Wednesday, March 24, at Sun Lakes Center of the Chandler-Gilbert Community College.

The event in partnership with the Attorney General’s Office will be held by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others avoid frauds and abuse. Each university will offer a half-day of classes in consumer identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch." Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html

Space is limited, so advance registration is required.  To register online or get more information, go to the Community & Family tab and click on SENIORS at the Attorney General's Web site ( www.azag.gov ) then click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

What: Attorney General’s Senior Anti-Crime University
When: Wednesday, March 24
Time: 8 a.m. - 12 Noon
Where: Sun Lakes Center of the Chandler-Gilbert Community College
25105 S. Alma School Rd.
Sun Lakes, Ariz.
Note: Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations. The Sierra Vista Senior Anti-Crime University is also partnering with Cochise College, the Cochise Elder Abuse Prevention Partnership and SEAGO.

Future Senior Anti-Crime Universities are scheduled for:
    Green Valley - April 7
    Oro Valley - May 7

More information about each of these events is available at: http://www.azag.gov/seniors/sleuths/sacu.html

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Register Online
Printable registration form
Printable Sr. Anti-Crime University flyer
Senior Sleuths Application

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(Phoenix, Ariz. - March 18, 2010) The Arizona Department of Environmental Quality and Arizona Attorney General's Office announced today that LiquidTitan, LLC of Parker has agreed to pay a $55,000 penalty under a consent judgment for air quality and waste violations at its used oil and petroleum facility in La Paz County.

ADEQ inspections over a four-year period revealed a host of violations at the refinery, which produces gasoline, diesel fuel and used oil fuels and is located at 31645 Industrial Lane in Parker.

The air violations included failing to stop releases of volatile organic compounds because vapor leaks and blockages in the vent lines to the refinery flare kept emissions from being controlled; burning of used oil fuel without an air quality permit revision; and failure to comply with self-inspection, sampling, testing, record keeping and reporting requirements.

The waste violations included failing to stop releases of used fuel oil to the soil from tanks and leaking valves; constructing and operating used oil storage and processing tanks without required backup containment; failure to label, properly store and dispose of used oil sludge containing elevated concentrations of lead and chlorine without a hazardous waste permit; and failure to properly screen or sample used oil for a variety of contaminants.

LiquidTitan has hired environmental management firms and spent about $900,000 since 2006 to return to and maintain compliance.
“Environmental stewardship is always good business because it saves money over the long run and reduces risk to public health.  In this case, the company has stepped forward to fix air and waste violations and invest in long term compliance and that’s good news for the environment and economy of Arizona,” ADEQ Director Benjamin H. Grumbles said.
"Any company handling used oil products needs to rigorously comply with state standards to protect the health of our citizens and our environment," Attorney General Terry Goddard said.

 The consent judgment is subject to court approval.

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(Phoenix, Ariz. -- March 17, 2010) Attorney General Terry Goddard today announced a $120,000 settlement with several defendants for their roles in a real estate scheme in Pima County that deceived novice investors, financial lenders and unqualified home buyers.

The settlement was reached with Andrew T. Silverstein; Andrew Silverstein P.L.L.C.; VinLan Ventures, doing business as Re/Max All Executives, and Vincent Volpe.

Defendant Silverstein, a real estate agent with Re/max All Executives, told investors they could legitimately purchase multiple investment homes and obtain 100 percent financing.  Silverstein then said he and other co-defendants would find rent-to-own buyers to purchase the investment properties, and some investors would receive their rent every month regardless of whether rent was actually collected. Defendant Volpe was the Re/Max broker for part of the time Silverstein engaged in this conduct.

Silverstein and other co-defendants then solicited rent-to-own buyers to enter into purchase agreements for homes for which they could not qualify. Eventually, investors no longer received rental amounts sufficient to cover the amount of the investors’ increasing mortgage payments.  Consequently, many of these homes were foreclosed, causing harm to the investors, lenders and rent-to-own home buyers.  Defendants profited from this scheme by collecting fees and commissions.

Under the agreement, the defendants must pay $120,000 with $84,000 going toward restitution and $36,000 to the Consumer Fraud Revolving Fund.

This agreement follows a $60,000 settlement earlier this year in the same case with four other defendants: Tucson Mortgage Co. L.L.C.; WGA Enterprises, L.L.C., and William and Jane Doe Anastopoulos.

Restitution will be provided to eligible consumers. Individuals who have a question about their eligibility can call the Attorney General's Office at (520) 628-6504.

Copies of the two settlements are attached.

Silverstein.pdf
Silverstein2.pdf

###

(Phoenix, Ariz. - March 10, 2010) As foreclosures continue at a high rate in Arizona, they impact not only homeowners but also people renting properties that have gone into foreclosure. Attorney General Terry Goddard today provided information about the rights of tenants living in properties that are foreclosed.

Last May, Congress passed the “Protecting Tenants at Foreclosure Act” to protect renters who were being forced to immediately leave their homes with little notice when the properties they rented went into foreclosure. The law remains in effect until Dec. 31, 2012.

“Everyone deserves to be treated with dignity and respect, especially in housing,” Goddard said. “Both landlords and tenants should understand and follow the requirements of the new federal law. All too often consumers can be victimized if they don’t understand their rights and responsibilities.”

Under the Protecting Tenants at Foreclosure Act:
-- All tenants must receive a 90-day notice before being evicted as the result of a foreclosure.
-- With some exceptions, the law requires that in the event of foreclosure, existing leases for renters are honored to the end of the term of their lease.
-- The stated exceptions are for tenants without a lease, tenants with a lease terminable at will under state law, or where the owner acquiring the property will occupy it as a primary residence. In these cases, the tenants must receive a minimum of 90 days notice to vacate the property.
-- This law does not affect the requirements of any state or local law that provides longer time periods or other additional protections for tenants.
--The new law does not require any agency to issue implementing regulations; these protections apply to foreclosures after May 20, 2009.
-- Although no federal or state agency is specifically charged with enforcing the Protecting Tenants at Foreclosure Act, if a landlord tries to evict a renter without following the law, the renter may be able to raise that as a defense in eviction proceedings.
For more information about the federal law, please visit http://thomas.loc.gov/. Arizona landlord-tenant laws can be found at www.azsos.gov. For information on foreclosure, please visit the Arizona Attorney General’s Foreclosure Resource Center at http://www.azag.gov/consumer/foreclosure/.

CPW- Tenant Foreclosure.mp3

###

(Phoenix, Ariz. - March 9, 2010) Attorney General Terry Goddard today announced a $12 million settlement with LifeLock, Inc., that resolves a 35-state investigation into advertising practices that overstated the effectiveness of the company’s identity theft protections.

The agreement with LifeLock, which is based in Tempe, Ariz., was reached with Arizona, 34 other states and the Federal Trade Commission (FTC). LifeLock made a number of deceptive advertising claims that encouraged consumers to believe that its $10-a-month service was a “proven solution” that would protect against all forms of identity theft, which was not true.

“It is important for consumers to feel safe and know that the product they are purchasing truly does what it says it will,” Goddard said. “LifeLock promised more than the company could deliver. There is no absolute way to avoid identity theft, but there are things consumers can do to minimize their risk.”

LifeLock sells identity theft services which it claims were “guaranteed” to protect consumers’ personal information and prevent criminals from using it to open accounts in other people’s names. LifeLock’s advertisements also implied that individuals with fraud alerts on their consumer reports would always receive a phone call prior to the opening of new accounts, when in fact such phone calls are not required by federal law and were not always provided.

“While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it,” said FTC Chairman Jon Leibowitz.

Under the agreement, LifeLock will pay $11 million in restitution to consumers and an additional $1 million to cover the costs of the states’ investigation. The states and the FTC will jointly send letters to eligible consumers, notifying them of the agreement and how they can benefit from the settlement. This case ranks as one of the largest state-FTC coordinated settlements on record.

LifeLock is now prohibited from stating that its services:
• Protect against all types of identity theft.
• Constantly monitor activity on all of its customers’ consumer reports.
• Always prompt a call from a potential creditor before a customer’s new credit account is opened.
• Eliminate the risk of identity theft.

“LifeLock is pleased with this agreement,” said LifeLock Chairman and CEO Todd Davis. “We welcome federal and state efforts to regulate our industry, because doing so helps to protect consumers from the risks of identity theft.”

The following states participated in the agreement: Alaska, Arizona, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, Mississippi, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington and West Virginia.

Consumers who feel they have been a victim or want to learn how to protect themselves from identity theft can visit the Arizona Attorney General’s website: www.azag.gov/consumer for more information.

Assistant Attorney General Noreen Matts represented Arizona in this case. For additional information, contact Molly Edwards at 602-542-8019.

A copy of the complaint is attached.

LifeLock Complaint 2010.pdf

###

(Phoenix, Ariz. – March 9, 2010)  Arizona Attorney General Terry Goddard today announced an antitrust settlement that will restore competition in the nation’s voting equipment systems market. Other parties to the agreement are eight more State Attorneys General, the U.S. Department of Justice and Elections Systems & Software, Inc. (“ES&S”).

On September 2, 2009, ES&S, the nation’s largest provider of voting equipment systems, acquired Premier Elections Solutions, Inc., PES Holdings, Inc. (collectively “Premier”), and other Diebold, Inc. subsidiaries.  At the time of its acquisition by ES&S, Premier was the second largest provider of voting equipment systems in the United States.  Absent this antitrust challenge, the combined company, ES&S, would have controlled approximately 80 percent of the voting systems in the country.  Among Arizona’s 15 counties, 14 would have owned the combined company’s voting systems.

According to the complaint accompanying the settlement agreement, ES&S’ acquisition of its closest competitor would reduce ES&S’ incentive to compete as aggressively for bids and to invest in new products, allowing it to increase the price and reduce the quality of the voting equipment systems across the country. The agreement was filed Monday in U.S. District Court, District of Columbia.

Competition in the voting equipment systems market will be restored by this settlement, which requires ES&S to divest all of the Premier Assets to another company approved by the Department of Justice. The settlement requires ES&S to divest the intellectual property related to the Premier voting equipments systems it purchased, the tooling and fixed assets used to manufacture those systems, and existing inventory and parts for the Premier voting equipment systems.  ES&S must waive all employee non-compete agreements and any contractual terms that would otherwise prevent customers from choosing the acquiring company to service their voting equipment systems.

“Without the divestitures required by the settlement, ES&S would not have had a viable competitor for the foreseeable future,” said Goddard.  “This settlement ensures that Arizona elections officials will have more than one choice when replacing, expanding or servicing their voting equipment systems.”  

The settlement is subject to the Tunney Act, which provides for a period of at least 60 days for public comment before the court can approve it.   

The other settling states include Colorado, Florida, Maine, Maryland, Massachusetts, New Mexico, Tennessee, and Washington.  

ES&S is a Delaware corporation headquartered in Omaha, Neb.  In 2008, ES&S provided 47 percent of the nation’s installed voting equipment systems and had revenues of $149.4 million.  

This case was handled by Assistant Attorney General Nancy Bonnell. Copies of the complaint, final judgment and competitive impact statement are attached.

For further information, contact Molly Edwards at 602-542-8019.

ES&S Proposed Final Judgment.pdf
ES&S Asset Preservation Stipulation and Order.pdf
ES&S Competitive Impact Statement.pdf
ES&S Complaint.pdf

###

(Phoenix, Ariz. - March 9, 2010) Attorney General Terry Goddard today advised consumers about recent changes in federal law that require credit card issuers to disclose more information to customers. These laws also affect how the credit cards are marketed, advertised and managed.

Last year, Congress passed the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which gives consumers additional protections from abusive practices. With the new law in place, it is still important for credit card holders to familiarize themselves with the fine print in their contracts as well as review new provisions set forth by the CARD Act.

“In difficult economic times, credit card debt can mount and carve away at family finances,” said Goddard. “Even though the new law is a step in the right direction to protect consumers, card holders still should read the fine print in their contracts.”

Below are a few of the new credit card regulations and protections in the CARD Act:

● Age 21 and Older Requirement - Card companies are no longer allowed to issue a credit card to people under 21 unless they can provide the means to repay the debt or have an adult over 21 co-sign on the account. Additionally, card issuers cannot provide tangible gifts to students on campuses in exchange for applying for credit.
● Exceeding Credit Card Limits - In the past, if you exceeded your approved spending limit, you would not be contacted by the credit card companies, which usually resulted in additional fees to your monthly statement without your knowledge. Now, no over-the-limit fees may be charged unless the consumer has given permission for over-the-limit transactions.
● Required Notice for Interest Rate Changes - Card issuers must give card holders 45-day advance notice in the event of an interest rate change.
● Cardholder Opt-Out - If there are significant changes made to the terms of the account, credit card holders can choose to reject those changes and will have five years to pay off the balance under the original terms.
● Bill Due Dates - Monthly statements must now be mailed or delivered 21 days prior to the due date. Companies were moving up due dates which led to increased late fees. The new requirement should help to eliminate this practice.
● Minimum Payment Disclosure - Card issuers must now disclose in their monthly statements to customers how long it will take the card holder to pay off the bill if only the minimum monthly payment is made. Issuers must also disclose how much the card holder would need to pay every month to pay off the balance in 36 months.
● Double-Billing Cycles Eliminated - Credit card companies can no longer employ two-cycle or double billing when calculating finance charges. A creditor cannot reach back to the previous billing period and consider that cycle’s balance when calculating the amount of interest charged in the current cycle.

The Arizona Attorney General’s Office encourages everyone to visit the AG website, http://www.azag.gov/consumer, for tips about making smarter decisions in the marketplace, at school and at home. You may also visit creditcards.com to view the comprehensive breakdown of the Credit CARD Act of 2009.

new-credit-card.mp3

###

(Phoenix, Ariz. - March 8, 2010) Attorney General Terry Goddard will host a Senior Anti-Crime University on Wednesday, March 24, at Sun Lakes Center of the Chandler-Gilbert Community College.

Goddard will be joined by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others to avoid frauds and abuse. Each university will offer a half-day of classes in consumer identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch."

Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html

Space is limited, so advance registration is required. To register online or get more information, go to the Community & Family tab and click on SENIORS at the Attorney General's Web site (www.azag.gov) then click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

What: Attorney General’s Senior Anti-Crime University
When: Wednesday, March 24
Time: 8 a.m. - 12 Noon
Where: Sun Lakes Center of the
Chandler-Gilbert Community College
25105 S. Alma School Rd.
Sun Lakes, Ariz.
Note: Event is open to the media.

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations. The Sun Lakes Senior Anti-Crime University is also partnering with New Adventures in Learning and the Chandler-Gilbert Community College.

Additional Senior Anti-Crime Universities are scheduled for:
Sierra Vista - March 18
Green Valley - April 7
More information about each of these events is available at: www.azag.gov/seniors/sleuths/sacu.html

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Seniors_Flier_SunLakes_3-24.pdf

###

“With many scam artists taking aim at seniors, I want all Arizonans to be armed with the knowledge they need to stay safe and stop crimes before they happen,” Goddard said. “Prevention is always better than prosecution. The best defense against scams and frauds are seniors who spot the warning signs and stop those scams before they happen.”

The scam usually starts with a phone call, a letter, or an email telling seniors that they’ve won a sweepstakes, lottery, or expensive new car.  The phone callers often say they are with the IRS, FBI, U.S. Attorney, Federal Trade Commission or even international businesses.  They usually explain to the “winner” that to receive the grand prize they need to pay money to cover taxes or insurance fees.  They tell the winner to keep the news of their prize confidential and give instructions to wire the money to a foreign country to claim the multi-million-dollar check.  Once the “winner” pays $500, or $1,000 or even $5,000, there will be more phone calls with complex reasons why more money needs to be paid to get the big prize.

The Attorney General’s Office wants you to be aware of some warning signs to protect yourself against these types of scams:

●          If it sounds too good to be true, it probably is.
●          Be suspicious of any lottery or sweepstakes mail.   Many times these mailings say to send a small amount of money to find out if you are a winner.  Most seniors who receive the calls from these scam artists initially responded to something that came to them in the mail.
●          Read the fine print.  Many of these letters will say you need to send money in order to acquire your winnings. 
●          Never pay money.  No legitimate lottery or sweepstakes company will ask you to pay money.
●          Never share your personal information, especially not your Social Security number, bank account, or credit card number.
●          Alert Authorities. If you have become a victim, don’t be afraid or ashamed to report it.  It’s your civic duty to make sure others don’t become victims of the same scams.
●          Scam Alerts.  Sign up for the Attorney General’s Scam Alerts at www.azag.gov/feed/scams. These alerts allow you to stay ahead of the rapidly changing consumer scams and schemes.

Prevention is always better than prosecution.  The Attorney General’s Office offers Senior Anti-Crime Universities throughout Arizona to help seniors learn to protect themselves against many of these types of scams.  The Senior Anti-Crime University is also part of the Attorney General’s Senior Sleuths project.  Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse.

There are several Senior Anti-Crime Universities planned for the coming months.  A complete schedule of upcoming events is attached.

The Arizona Attorney General’s Office encourages everyone to visit the AG website, http://www.azag.gov/consumer, for tips about making smarter decisions in the marketplace, at school and at home. 

C2010 SACU Schedule March - June.pdf
Seniors.mp3

###

Lead-in-Toys.mp3

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(Phoenix, Ariz. - March 4, 2010) Attorney General Terry Goddard today announced the start of Arizona Consumer Protection Week, a campaign intended to help people become more savvy consumers, which will run March 7-13. This effort also encourages Arizonans to take full advantage of their consumer rights.

“The message of Consumer Protection Week is that it is never too early or too late to become a more informed and empowered consumer,” Goddard said. “Regardless of your age or financial situation, useful lessons can be learned about spending and managing money wisely.”

This year’s theme -- Dollars & Sense: Rated “A” for All Ages -- highlights the importance of using good consumer sense at every stage of life, from grade school to retirement.  In recognition of the week, the Arizona Attorney General’s Office is promoting free resources to help Arizonans protect their privacy, manage money and debt, avoid identity theft, understand credit and mortgages, and steer clear of frauds and scams.  

The Attorney General’s Office has aggressively pursued those who prey upon the public and threaten the economic well-being of Arizona residents. In the last year alone, the Office processed some 11,400 consumer complaints and has filed dozens of civil and criminal cases.

The Office has prosecuted operators of fraudulent foreclosure rescue businesses who have victimized hundreds of Arizona homeowners. Through criminal prosecutions and consumer fraud lawsuits, the Office stopped rip-off artists who charged consumers large upfront fees and claimed they could modify their mortgage terms and prevent foreclosure, yet provided no such assistance.

Additionally, the Attorney General’s office has filed several major lawsuits and settlements to stop deceptive marketing or advertising. These included a multi-state settlement with Countrywide Financial Corporation with a potential value of nearly $8 billion, relating to the company’s use of deceptive mortgage lending practices, and multi-million-dollar settlements with some of the world’s biggest drug companies.  Another significant case was the $175,000 Nutraceuticals settlement in which the defendants used the Internet to advertise “14-day risk free” trial offers of various “nutritional supplements”.  The company failed to adequately disclose to consumers material terms and conditions that rendered the trial offers far from “risk free” and resulted in significant, unauthorized charges to consumers.

The Office also reached a $1 million price accuracy settlement with Walmart, the nation’s largest retailer. Walmart agreed to establish a rigorous price inspection and monitoring system to ensure that its customers have access to accurate and clearly posted prices.

The Arizona Attorney General’s Office encourages everyone to visit the AG website and the special section set up specifically for Consumer Protection Week.  Please visit http://www.azag.gov/consumer for tips about making smarter decisions in the marketplace, at school and at home.

CPW.mp3

###

(Phoenix, Ariz. – March 2, 2010) Attorney General Terry Goddard today visited Capitol School in Phoenix to recognize winners of the 2010 Meth Not Even Once Poster Contest and unveil the next phase of the Arizona Meth Project’s dynamic youth prevention campaign.

Research-based prevention ads depict the destructive impact meth can have on the friends and family of those who use the drug. The radio, print, and television ads that are at the heart of the campaign will begin to air in the greater Phoenix area media market this week with a hard-hitting message.

In November, the Arizona Attorney General’s Office and Arizona Meth Project invited 7th and 8th graders across Arizona to participate in the Meth Not Even Once Poster Contest. The contest is part of a comprehensive campaign to make young people more aware of the dangers of meth. More than 500 students submitted entries.

Goddard recognized the following winning students:
First Place: Jenna Poarch, 8th grade, Thatcher Middle School, Thatcher
Second Place: Alyssa Castillo, 7th grade, Williams Middle School, Williams
Third Place:  Osiel Ferrer, 8th grade, Capitol School, Phoenix

Honorable mention was awarded to 12 students who will be recognized in local events at their schools:

Joshua Vidalez, 7th grade Issac Middle School, Phoenix
Steven Cordova, 8th grade Showlow Junior High, Show Low
Moniah Madaro, 8th grade Zuni Hills Elementary, Sun City
Dillion Green, 7th grade, Explorer Middle School, Phoenix
David Carranza, 7th grade, Explorer Middle School, Phoenix
Ashleigh Vellutato, 8th grade, Zuni Hills Elementary, Sun City
Korina Adkins, 7th grade, Williams Middle School, Williams
Luis Pereira, 8th grade, Greenway Middle School, Phoenix
Nancy Li, 8th grade, Wilson Elementary School, Tucson
Raven Germaine, 7th grade, Thatcher Middle School, Thatcher
Natalie Vergara, 7th grade, Bullhead City Junior High, Bullhead City
Sadie Dancel, 7th grade, Luke Elementary, Glendale

Contest winners received first, second and third place prizes of $500, $350 and $150 respectively, along with prizes from Peter Piper Pizza and Harkins Theaters.  Honorable mention award winners received $25.

“The Not Even Once message communicated in these gritty ads is clearly working,”
Goddard said. “The Arizona Meth Project has achieved profound changes in the way methamphetamine is perceived by Arizona children and families. Since the launch of the Arizona Meth Project campaign, use of the drug among youth has significantly declined, falling by more than half in many categories.”

“For years, meth has been the number one problem for law enforcement in Arizona,” Goddard added. “Given our state’s economic challenges, preventing crime becomes all the more important. By keeping our communities safe, we also can save public dollars. One area where we can make a big cost-saving difference is drug prevention, and in particular, preventing meth use. Methamphetamine costs the United States nearly $24 billion a year, according to a study by the RAND Corporation.”

In early 2007, Goddard, in partnership with 10 Arizona counties, including Maricopa County, and local anti-meth coalitions, launched the Arizona Meth Project to reduce meth use by Arizona youth. The project is built around a gritty television, radio and print advertising campaign designed to teach young people ages 12-17 about the negative impact meth has on a person’s physical health, family and peer group, as well as the potential to become addicted after only one use.

The 2010 poster, along with the winning artwork and more information about meth, can be found on the Attorney General’s Web site at www.azag.gov, as well as on the Arizona Meth Project web site, www.arizonamethproject.org.

For more information, contact Molly Edwards at (602) 542-8019

MethPoster2010_REV3.pdf
2010 Meth NOT EVEN ONCE ® Poster Contest Website

###

(Phoenix, Ariz. - February 23, 2010) Attorney General Terry Goddard will kick off Consumer Protection Month at the Arizona Fraud Prevention Coalition’s annual Scam Jam next week. The event will take place Wednesday, March 3, at the Peoria Senior Center from 9:30 a.m. to 1 p.m. Goddard will speak just after 11:30 a.m.

Goddard will discuss common frauds and scams targeting Arizona’s seniors, including loan modification scams, identity theft and the “grandparent scam.” Other speakers will include local professionals who will discuss identity theft prevention, home repairs, Medicare and personal investing.

A shredding truck will be on site from 9:30 to 11 a.m. Each visitor may bring up to one box of documents to be shredded at no charge at the event.

Event Information:

What: Arizona Fraud Prevention Coalition
Annual Scam Jam

When: Wednesday, March 3

Time: 9:30 a.m. - 1 p.m.
Goddard will speak at approximately 11:30 a.m.

Where: Peoria Senior Center
8335 W. Jefferson
Peoria, Ariz.

Note: A copy of the event flyer, agenda, and map to the event are attached.

Additional Consumer Protection Month materials are available on the Attorney General’s Web site, www.azag.gov .

Scam Jam Map-PeoriaSrCtr
Scam Jam Program 2010
ScamJam2010

###

(Phoenix, Ariz. -- Feb. 26, 2010) In response to a request by Attorney General Terry Goddard and other state Attorneys General, Toyota Motor Sales, U.S.A., Inc. ("Toyota") has agreed to make special accommodations for Toyota owners in Arizona and all other states who have been affected by the company's recent recalls.

No-cost services provided by the company to Toyota and Lexus owners may include at-home pickup and return of recall vehicles, free rental cars until repairs are made and reimbursement for other transportation expenses related to the repair. Toyota said these benefits will be provided by dealerships on a case-by-case basis, and the company will reimburse dealers for the expense.

"Providing these services to its customers at no cost is the right thing for Toyota to do," Goddard said. "Consumers who have to make repairs because of safety defects caused by the company should not have to bear additional expense and inconvenience."  

The company, which said earlier this week it would offer these accommodations in New York State, agreed to extend the benefits to its customers across the country after requests were made by Attorneys General in several states.

In a letter today to the Attorneys General, Toyota said it is "committed to making the recall campaigns proceed in a way that helps to ensure the customers' safety and satisfaction." A copy of that letter is attached.

For more information, contact Molly Edwards at (602) 542-8019.

Toyota - AG Cover Letter - FEB 26 2010.pdf
Toyota Message.mp3

###

(Phoenix, Ariz. – February 25, 2010) Attorney General Terry Goddard today announced that Lawrence Carl Runke, 66, of Clarksdale, has been sentenced to four years in prison, followed by five years probation, for operating an illegal pharmacy.  The pharmacy, Global Medicines LLC in Cottonwood, generated more than $1.5 million in revenue since 2005 and was purchasing unapproved drugs from suppliers in India and reselling the drugs to consumers across the country.

Runke, a former surgeon, was indicted last April. On Jan. 14, a Yavapai County jury found him guilty of 12 criminal counts that included conspiracy, money laundering, sale of prescription drugs, possession of prescription drugs for sale and possession of dangerous drugs for sale.

In 2005, the Arizona Medical Board investigated a complaint that Runke, whose medical license had been suspended six years earlier, was operating an illegal pharmacy. As a result of its investigation, Runke, who was not a licensed pharmacist, surrendered his license to practice medicine.

While the Arizona Medical Board’s investigation was ongoing, the U.S. Food and Drug Administration’s Office of Criminal Investigations and the Phoenix Police Department began investigating Global Medicines after being notified of the seizure of multiple packages of illegal drugs.  The investigation revealed that Runke was purchasing unapproved drugs from Indian suppliers and marketing the drugs to customers across the United States.  The drugs provided by Runke were not FDA approved and many posed serious health risks to patients.   

In April 2007, a search warrant was executed at the Cottonwood pharmacy. The search warrant revealed hundreds of different types of unapproved prescription and dangerous drugs.

Assistant Attorney General Matt Conti prosecuted this case in Yavapai County Superior Court.

For more information, contact Molly E. Edwards at 602-542-8019.

###

(Phoenix, Ariz. – February 25, 2010) Attorney General Terry Goddard will visit Capitol School in Phoenix on Tuesday, March 2, to recognize winners of the 2010 Meth Not Even Once Poster Contest and unveil the next phase Arizona Meth Project’s dynamic youth prevention ad campaign.

First, second and third place winners from around the state, along with 12 honorable mention recipients, will be recognized.

Research-based prevention ads depict the destructive impact that meth can have on the friends and family of those who use the drug. The radio, print, and television ads that are at the heart of the campaign will begin to air next week in the greater Phoenix area media market with a hard-hitting message.

When: Tuesday, March 2, 2010

10 – 10:30 am.

Where: Capitol School
  330 N. 16th Ave
  Phoenix, Ariz. 85007
  School Phone 602.257.3835
  Cafeteria (check in at main office)
  Principal Russell Sanders

For additional information, contact Molly E. Edwards at (602) 542-8019.

###

(Phoenix, Ariz. - February 24, 2010)  Attorney General Terry Goddard will be hosting a Senior Anti-Crime University on Thursday, March 18, at Cochise College in Sierra Vista.

Goddard will be joined by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others to avoid frauds and abuse. Each university will offer a half-day of classes in consumer identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch." Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html

Space is limited, so advance registration is required.  To register online or get more information, go to the Community & Family tab and click on SENIORS at the Attorney General's Web site ( www.azag.gov ) then click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

What: Attorney General’s Senior Anti-Crime University
When: Thursday, March 18
Time: 1 p.m.  - 5 p.m.
Where: Cochise College
901 N. Colombo Avenue
Sierra Vista, Ariz.
Note: Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations. The Sierra Vista Senior Anti-Crime University is also partnering with Cochise College, the Cochise Elder Abuse Prevention Partnership and SEAGO.

Future Senior Anti-Crime Universities are scheduled for:
    Sun Lakes - March 24
    Green Valley - April 7
More information about each of these events is available at:   www.azag.gov/seniors/sleuths/sacu.html

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

SACU_Flier_SierraV_3-18_rev2.pdf
Printable registration form (Register Online)
SeniorSleuthApplication.pdf

###

(Phoenix, Ariz. – Feb. 19, 2010) Attorney General Terry Goddard will host a program of criminal justice training for 60 prosecutors and investigators from Mexico on Monday. In 2008, Mexico passed constitutional reforms paving the way for a transition from the Country’s traditional judicial written system to oral trials similar to the United States’ judicial system.

WHEN: Monday, February 22, 8:45 – 9:45 a.m.

WHERE: Sheraton Downtown
340 N. 3rd Street (3rd St. and Van Buren)
2nd Floor – Maryvale “A”
Phoenix, Arizona 85004

NOTE: Because of heightened security, reporters must bring credentials and check in at the lobby with Molly Edwards.

CONTACTS: For additional information, contact Molly E. Edwards at (602) 542-8019.

###

(Phoenix, Ariz. -- Feb. 19, 2010) The following My Turn column is written
by Attorney General Terry Goddard regarding his Feb. 14-17 visit to Mexico
to meet with top law enforcement officials about increasing border security.
 
-------------------------------------------------

The challenging fight against organized crime on both sides of the border can be waged
most effectively when law enforcement strategies by both nations are closely coordinated.
A series of top-level meetings in Mexico last week moved us significantly closer to
maximizing our efforts.  

A key priority in our fight must be reducing the flood of cash pouring from the
United States to the international drug cartels based in Mexico. I was
encouraged to hear so many senior Mexican law enforcement
officials now share my belief that the most effective way to combat the
cartels is by stemming the flow of illegal cash from the U.S. into the cartel's pockets.

My office's $94 million settlement with Western Union will give law enforcement in
both countries important new resources. It will provide access to money transfer data
on suspicious transactions, and it will allocate $50 million to bolster state and local
law enforcement along the entire Southwest border.

When I arrived in Mexico City, I was met with sobering news. The newspaper
headline reported that murders in the border city of Juarez were nearly
eight times higher than the national average. Nogales, Sonora -- right across the border
from Nogales, Arizona -- is on a pace to have three times as many
cartel-related murders this year than last year.

The problem, of course, is the extreme violence spawned by the drug trade of
Mexico's powerful and brutal cartels. The cartels lure impoverished
children out of the school system and into the violent drug, weapons and
human smuggling trades, where many become killers, murder victims or both.

Violence has spilled into the U.S., and if not controlled soon, the
cartels will establish a stronghold in our country to spread the terror
they have brought to Central and South America. We cannot allow that to
happen.

My first meeting in Mexico City was with the nation's relatively new Attorney General,
Arturo Chavez Chavez, who was encouraged by the opportunities
now available to law enforcement as a result of the Western Union
settlement. I was impressed with his interest in partnering with Arizona to find
solutions. President Felipe Calderon has directed his Attorney General to focus more on
disrupting the movement of money to the cartels.

I also met with the Public Safety Commission of the Mexican
Congress. One Congressman offered a particularly apt assessment of the
problem. Referring to the international cartels, he remarked, "Crime has
gone global, but crime fighting has not." I could not agree more. I
testified that we need bilateral law enforcement efforts to share and
quickly pursue investigative leads on both sides of the border.

My team also sat down with Secretary Janet Napolitano, who happened to be in
Mexico to sign a multinational pact on air security. She had been fully briefed on
our Western Union settlement and was ready to explore new ways for the federal
government to partner with Arizona on attacking border crime.

We talked about how to make the most of the new information and resources
provided by the settlement. I was heartened by the Secretary's receptiveness to
using federal Operation Stonegarden money as a match for the law enforcement
grants from the settlement funds.

Secretary Napolitano also offered Homeland Security's assistance
in investigating suspicious transactions uncovered through data
Western Union will provide, along with the possibility of
housing a new state-federal-local border crimes task force in the new
Border Patrol headquarters in Tucson.

Our final meeting was with the National Commissioner of the Federal
Police and the Director of Intelligence.  I was pleased to learn that
5,000 newly trained Federal Police recruits have been deployed in the past
three months, including 200 stationed in Nogales, Sonora. Given the
current surge of violence there, this new deployment is an important
new weapon against cartel violence.

The information exchanged and personal relationships forged on this
trip will help us improve security on the border. Broadening efforts
to diminish the flow of money can take us a long way toward our goal.

Working together, we can make it happen.

TG.jpg
TG and Mexico AG.jpg
TG In Mexico City.jpg

###

(Phoenix, Ariz. – Feb. 11, 2010)  Arizona Attorney General Terry Goddard and Western Union Financial Services, Inc. today announced an unprecedented, $94 million settlement which will provide substantial new resources for law enforcement authorities in the four Southwest border states to combat illegal activity along the entire U.S.-Mexico border.

Under the agreement, Western Union will pay $21 million to the State of Arizona and contribute $50 million to the Center for State Enforcement of Antitrust and Consumer Protection Laws, Inc., a not-for-profit organization whose mission is to enhance effective law enforcement through State Attorneys General. The company also will commit $19 million over the next several years to strengthen its own anti-money laundering effort and will provide $4 million to support an independent monitoring program.    

The $50 million will be available through a grant process for law enforcement agencies throughout the U.S.-Mexican border to fund money laundering, human trafficking, drug smuggling and arms trafficking investigations and prosecutions. The funds also will support law enforcement training efforts in the United States and in Mexico to help reduce money laundering. Grant applications will be evaluated by representatives the Attorney General's Offices of Arizona, California, New Mexico, and Texas; and representatives from the Arizona Department of Public Safety; the Arizona Department of Financial Institutions, and the Phoenix Police Department.

"This is a major step in our ability to crack down on drug cartels and organized border crime." Goddard said.  "Attacking the flow of illicit funds from the United States to smuggling cartels in Mexico is fundamental to our goal of crushing the cartels.  The money and information made available from this settlement will offer invaluable tools to and federal law enforcement on both sides of the border."

"Today's announcement reflects Western Union’s commitment to ensuring that our own services are not abused by those engaged in criminal activity and to enhancing the fight against illegal activity along the U.S.-Mexico border," said David Schlapbach, Executive Vice President and General Counsel of Western Union.  "Assisting law enforcement in their efforts to combat such activity serves the public interest on both sides of the border and helps protect those who use our services from the consequences of such activity."

The settlement resolves all outstanding issues between Western Union and the State of Arizona. Over the past decade, consumer-to-consumer money transfers have become more prevalent. While most transactions are legitimate, some services provided by money transmitters have been abused by people involved in illegal activity. Western Union and Arizona have differed over the appropriate ways to prevent such abuses. These differences have led to various court cases and regulatory actions and assertions by Arizona authorities that Western Union was not doing enough to detect and prevent the abuse of its services.  The agreement announced today settles these differences.

As part of the settlement with Arizona, Western Union has agreed to:

*Enhance its anti-money laundering program in the Southwest Border Area, which is expected to involve the expenditure of an additional $19 million over the next several years.

*The appointment of an independent monitor by the Maricopa County Superior Court to oversee Western Union’s anti-money laundering efforts in the Southwest Border Area over the next two-and-a-half to three-and-a-half years, funded with $4 million paid by Western Union.

*A payment of $21 million to reimburse the Arizona Attorney General’s Office, the Arizona Department of Public Safety, the Phoenix Police Department, and the Arizona Department of Financial Institutions for the expenses they incurred in investigating activity by Western Union and its agents.

The disputes being settled today relate to activity that occurred between 2003 and 2007.  Attorney General Goddard has acknowledged that Western Union's anti-money laundering effort is more robust today than in the past and that Western Union has devoted considerable effort to addressing money laundering concerns in the Southwest border area.   

"Western Union has made significant improvements in its anti-money laundering program over the years and continues to do so," Schlapbach said. "Although we believe our anti-money laundering program is the best in the industry, we are committed to working cooperatively with Arizona to further enhance our program to deal with the unique problems associated with criminal activity along the Southwest border." 

"Today's agreement is an example of how the private sector and law enforcement can overcome their past differences and work in good faith to accomplish a common goal," Goddard added.

WesternUnionAgreementAudioClip_1.mp3

###

(Phoenix, Ariz. – February 12, 2010) Attorney General Terry Goddard tonight will present the “Law Enforcement Officer of the Year Award” to an Arizona DUI officer at the Mother’s Against Drunk Driving Recognition Dinner at the Desert Willows Conference Center in Phoenix.

MADD's Law Enforcement Recognition banquet honors law enforcement officers, agencies, and prosecuting attorneys throughout Arizona for their dedication to the fight against drunk driving.  These individuals have truly made a positive impact in the communities in which we work and live.

"It is important that we take time to recognize the men and women of law enforcement who are on the front lines battling drunk driving,” Goddard said. “I extend my deepest gratitude to all the officers and attorneys being honored here tonight for keeping our streets and highways safe for everyone in our communities.”

For additional information, please contact Molly Edwards at (602) 542-8019.

###

(Phoenix, Ariz. -- Feb. 12, 2010) Attorney General Terry Goddard will travel to Mexico City to meet early next week with Mexico's Attorney General, Arturo Chavez Chavez, and other top Mexican law enforcement officials on a number of border security issues.

A principal topic on the agenda will be implementation of the $94 million settlement with Western Union that Goddard announced Thursday. The agreement calls for Western Union to provide previously unavailable data on money transfers in both the United States and Mexico that are suspected of being illicit. Goddard said access to that information will help Arizona and other Southwest border states stem the flow of cash to the international cartels based in Mexico that smuggle drugs and humans across the border.

Goddard also will be discussing strategies for collaborative criminal investigations and prosecutions in border-related crime. These discussions will include procedures for finding cross-border fugitives and the next steps in training of Mexican prosecutors by prosecutors from the Arizona Attorney General's Office.   

Goddard has worked for the past several years to strengthen relations with Mexican law enforcement and to eliminate the Mexican border as a criminal refuge. During his term as chair of the Conference of Western Attorneys General three years ago, he made establishing a better working relationship his No. 1 priority. Meetings with top Mexican officials were held in Mexico and in Phoenix, leading to new agreements to work together in the fight against border crimes, which include drug smuggling, human smuggling, arms trafficking and money laundering.

Goddard will be available on Thursday, Feb. 18, to talk with reporters about the trip.  Contact Molly Edwards with any further questions at 602-542-8019.

###

(Phoenix, Ariz. - February 10, 2010) Attorney General Terry Goddard today announced that Tucson Police Officer Angel Montalvo, 30, has been indicted on nine counts of computer tampering, one count of trafficking in the identity of another person, one count of aggravated taking the identity of another person, and one count of fraudulent schemes and artifices. The charges include nine Class 6 felonies, one Class 3 felony and two Class 2 felonies.

According to court documents, Montalvo misused his access to police databases for non-law enforcement purposes. Montalvo accessed the ACJIS database which houses sensitive information relating to driver registrations, criminal backgrounds, home addresses and other personal information of Arizona citizens.

Documents state that Montalvo accessed these databases over 20 times between May 20, 2009 and December 19, 2009 for his personal use. Montalvo is accused of then disseminating this information to non-law enforcement persons.

Montalvo has been with the Tucson Police Department for three years. He is currently on administrative leave.

He is scheduled to be arraigned at 1 p.m. today in the Pima County Superior Court.

This case was a result of a joint investigation by the Tucson Police Department and FBI and is being prosecuted by Assistant Attorney General Michael Jette in Pima County Superior Court.

A copy of the indictment is attached. For more information, contact Molly Edwards at (602) 542-8019.

Montalvo Indictment 2-2010.pdf

###

(Phoenix, Ariz. – Feb. 10, 2010) Attorney General Terry Goddard announced today that Linda Darlene Giles, 58, of Tucson, has been sentenced in Pima County Superior Court to 18.5 years in prison for financial abuse of a vulnerable adult and emotional abuse of a vulnerable adult. She must also pay $540,000 in restitution.

In March 2009, Giles was sentenced to 10.5 years in prison for manslaughter in the death of James Carafas, who was 85 years old. The sentence for abuse will be served concurrently with the manslaughter sentence.

According to investigators, Carafas had known Giles for approximately 35 years.  At the time his wife passed away in 2003, Carafas suffered from two types of cancer, as well as being both hearing and sight impaired.  Giles moved to Tucson in August 2005 to acquire training to be a nurse’s assistant.  However, she never completed her training. During the 15 months she lived with Carafas, Giles gained control over $3 million in real estate and more than $100,000 in cash belonging to Carafas.  

This case was investigated by Pima County Sheriff’s Detective Daniel Preuss and prosecuted by Assistant Attorney General John Evans and Special Assistant Attorney General Ronda Lustman.  For additional information, contact Molly Edwards at (602) 542-8019.

Giles Case - Scanned Picture Carafas5.jpg
Giles mug shot.jpg

###

(Phoenix, Ariz. - Feb. 8, 2010)  In an effort to make young people aware of the tragedy of elder abuse, Attorney General Terry Goddard, the Arizona Area Agencies on Aging and the Arizona Elder Abuse Coalition have partnered to sponsor the 2010 “Why Should I Care about Elder Abuse?” student arts competition.

“This is the second year we have held this competition, and it has helped increase attention to elder abuse,” said Goddard. “While my office continues to prosecute those who commit this crime, only through awareness can we stop abuse before it begins.”

High school juniors throughout Arizona are invited to create an original artwork illustrating the question, “Why Should I Care about Elder Abuse?”  This contest will help spotlight the need to protect their grandparents, friends and neighbors. Elder abuse includes financial fraud or exploitation, neglect and physical abuse.  It is one of the most underreported crimes in Arizona.

Entries are due February 17, 2010, at your local Area Agency on Aging. Regional winners will be announced in March. Local area contest winners will receive first, second and third place prizes of $100, $75, and $50. Three winners from each Area Agency on Aging will then compete for statewide prizes. Statewide contest winners will receive first, second and third place prizes of $500, $250, and $100, and six honorable mentions will receive $25.

Winning artworks will also be used on a poster to promote a statewide elder abuse awareness campaign held to coincide with World Elder Abuse Awareness Day on June 15, 2010.

For additional information, contest rules and to find your local Area Agency on Aging, go to www.azag.gov.

2010 “Why Should I Care About Elder Abuse?” Student Arts Competition Flyer

2010 "Why Should I Care About Elder Abuse?" Student Arts Entry Form

###

(Phoenix, Ariz. – February 16, 2010)  Attorney General Terry Goddard today reminded Phoenix residents that he will be hosting the seventh in his series of Senior Anti-Crime Universities on Thursday, February 18, at Tanner Square in downtown Phoenix.

Goddard will be joined by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others avoid frauds, scams and abuse. Each university will offer a half-day of classes in consumer fraud and scams, identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch." Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html

Space is limited, so advance registration is required.  To register online or get more information, go to the Community & Family tab and click on SENIORS at the Attorney General's Web site (www.azag.gov) then click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

What:              Attorney General’s Senior Anti-Crime University
When:                         Thursday, February 18
Time:               12 noon – 4 p.m.
Where:            Tanner Square Office Building
700 East Jefferson Street
Phoenix, Ariz.
Note:                Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.

Future Senior Anti-Crime Universities are scheduled for:
Sierra Vista - March 18;
Sun Lakes - March 24
Green Valley - April 7
More information about each of these events is available at:  www.azag.gov/seniors/sleuths/sacu.html

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Printable registration form (Register Online)
Printable Sr. Anti-Crime University flyer
Senior Sleuths Application

###

(Phoenix, Ariz. -- Feb. 4, 2010) PHOENIX – Gov.  Jan Brewer, Attorney General Terry Goddard and the Maricopa County Board of Supervisors today adopted an agreement to resolve a long-standing issue involving residential encroachment around Luke Air Force Base at a special meeting of the Maricopa County Board of Supervisors held at the Wigwam Resort in Litchfield Park.

“I’d like to thank key leaders and their staff who joined me in reaching this important resolution that the Supervisors adopted today, including Senator John Nelson, Attorney General Terry Goddard, the Maricopa County Board of Supervisors and Senator John McCain,” said Governor Brewer. “It is a testament to our state officials who came together in a unified and cooperative spirit to uphold the health and welfare of our citizens, preserve the rights of property owners as well as the success of the State’s military bases. Our unified agreement will no doubt make clear to the U. S. Defense Department that Arizona stands ready for the F-35 Joint Strike Fighter mission.”

"This agreement represents a major victory for the citizens of Arizona," Goddard said. "It upholds state law, protects the health and safety of nearby residents and strengthens Luke's bid for the F-35. It also shows what can be accomplished when a commitment to serve the greater good prevails over political and policy differences."

The settlement reached by the parties provides that the County will not issue building permits for new or expanded residential construction in high noise and accident potential zones.

“We always knew that protecting Luke was our common, unifying thread,” said Maricopa County Board of Supervisors Chairman Don Stapley. “But working together on this agreement, those bonds and communication are stronger. Those bonds will serve us well in the future.”

“The Governor has always been a strong supporter of Luke Air Force Base,” said Supervisor Max W. Wilson. “This agreement protects the base, its mission and its future. It gives Maricopa County taxpayers a measure of protection as well.”

The agreement removes a concern raised by Air Force officials about further residential encroachment near the base and should improve Luke's chances to be chosen as a training base for the next generation of Air Force jets, the F-35 Joint Strike Fighter. That decision stands to have a substantial impact on Arizona’s economy since the base contributes more than $2 billion a year to the state.

The Luke controversy goes back to 2004 when the State Legislature and the Governor signed into law development requirements to ensure adequate buffer zones around the State's military bases. All local governments in Maricopa County, with the exception of the county itself, complied with the law. The county continued to issue nearly 100 residential building permits in areas with high accident and noise potential surrounding Luke and its related facilities.

Two years ago, Goddard issued a legal opinion affirming the Legislature's intent to protect Arizona's military bases and followed up with a letter to the Maricopa County Board asserting its legal obligation to protect Luke from residential encroachment. When the board indicated it would not comply, he filed a lawsuit asking the court to require the county to take the steps required by state law. The county countersued, asking the court to strike down the 2004 law.

One year ago, Maricopa County Superior Court ruled in the State’s favor on nearly every point in the lawsuit, but the county remained unwilling to give up all aspects of its legal challenge.

The agreement reached this week resolves the lawsuit and should stop residential development near the base. A key to the settlement was the State's willingness to partner with the county and be the first line of legal defense against any potential lawsuits filed by property owners who still want to build in the high-risk zones around Luke.

###

(Phoenix, Ariz. – Feb. 2, 2010) Attorney General Terry Goddard today announced that Teisa Simone Mayfield Vallejo, 24, of Surprise, has been indicted on two counts of unauthorized access to criminal history.  

On June 16, 2009, while she was employed by the Arizona Department of Public Safety (DPS), Vallejo is alleged to have accessed two secure criminal history record databases to search for information on her sister-in-law without a lawful purpose. She is currently on administrative leave from DPS.

Vallejo will be arraigned on Wednesday, Feb., 3, in Maricopa County Superior Court.  

The case was investigated by the Department of Public Safety and is being prosecuted by Assistant Attorney General Todd Lawson.  A copy of the indictment is attached.

For questions, please contact Steve Wilson at 602-542-8351.

Vallejo Indictment.pdf

###

(Phoenix, Ariz. – Feb. 1, 2010) Attorney General Terry Goddard today announced that Deborah Cheryl Bennett, 56, has been indicted on eight felony counts in connection with an Arizona investment scheme that defrauded 32 investors of more than $500,000.

When she operated the alleged scheme in 2006 and 2007, Bennett was active in social and civic affairs in the Phoenix area. She subsequently moved to Kenosha, Wis., remarried and changed her name to Deborah Cheryl Paura.

Bennett is alleged to have represented herself as a stock trader, though she did not hold a license to sell securities, and promised investors that she would invest their money in stocks at a guaranteed high rate of return – in some cases 20 to 30 percent monthly.  She also guaranteed that she would return the principal to the investors.  She instead took a portion of the funds for her personal use and did not return the principal.

As a result of her actions, which took place in Maricopa County, she was charged with:

• One count of fraudulent schemes and artifices
• Five counts of theft
• One count of fraud in purchase or sale of securities
• One count of transactions by unregistered dealer

Her arraignment is scheduled for Wednesday, Feb. 3, in Maricopa County Superior Court.

The case was investigated by the Arizona Corporation Commission and is being prosecuted by Assistant Attorney General Todd Lawson.  A copy of the indictment is attached.  For questions, please contact Steve Wilson at 602-542-8351.

Bennett Indictment 2010.pdf

###

(Phoenix, Ariz. – Jan. 25, 2010)  Attorney General Terry Goddard today announced an antitrust settlement with 16 other State Attorneys General, the United States Department of Justice, Ticketmaster and Live Nation that preserves competition in the concert ticketing services market in Arizona and nationally.  

Ticketmaster, the nation’s largest ticketing services company, and Live Nation, the nation’s largest concert promoter, announced 11 months ago that they were merging to form Live Nation Entertainment.  The announcement came less than two months after Live Nation had entered the concert ticketing business as Ticketmaster’s closest competitor.  

According to the Complaint accompanying the settlement agreement filed today in the United States District Court, District of Columbia, consumers and major concert venues would have faced higher ticket service charges as a result of the merger of these two giants in the concert industry.  The settlement remedies the anticipated anticompetitive result of a merger between these competitors.  

“We have taken action to protect Arizona concert goers.”  Goddard said.  “Without the required divestitures and prohibitions in this settlement, the combined company would have been a behemoth, with no competitive pressure to limit concert ticket service charges.  This settlement ensures that competitors will have the ability to compete to provide ticketing services to major concerts. Venues will be able to choose a ticket provider other than Live Nation Entertainment while still having access to the concerts promoted by Live Nation Entertainment.”

The settlement agreement, in the form of a Proposed Final Judgment, requires the merging parties to grant a perpetual license to Ticketmaster’s core primary ticketing platform to a third party.  The merging parties are further required to divest Ticketmaster’s entire Paciolan business, which provides a venue-managed platform for selling tickets through the venue’s own web site.   Finally, the Final Judgment prohibits the merging parties from retaliating against venue owners who contract with the merging parties’ competitors.  

The Settlement is subject to the Federal Tunney Act, which provides for a period of at least 60 days or public comment before the court can approve the settlement.

The other settling states include Arkansas, California, Connecticut, Florida, Iowa, Illinois, Louisiana, Massachusetts, Nevada, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas and Wisconsin.  

Ticketmaster is a Delaware corporation headquartered in West Hollywood, Calif. In 2008, it sold more than 141 million tickets valued at nearly $9 billion.

Live Nation, the world’s largest concert promoter, is a Delaware corporation headquartered in Beverly Hills, Calif. Its 2008 gross revenues were more than $4 billion.

Attached are the complaint and Exhibits A though C.

For additional questions, contact Molly Edwards at 602-542-8019.

Complaint Stamped.pdf
Exhibit A Proposed Final Judgment Stamped.pdf
Exhibit B Us Explanation Of Consent Decree Procedures Stamped.pdf
Exhibit C Hold Separate Stipulation And Order Stamped.pdf

###

Three Tucson non-profits to receive $490,984

WHO: Attorney General Terry Goddard will present checks to three of the 12 non-profit housing counseling entities in Arizona receiving awards from the Countrywide consumer fraud settlement. Family Housing Resources, Inc. will receive $179,098, Administrative Resources and Choices (ARC) will receive $157,680 and PIO Decimo Center will receive $154,206.

WHAT: The funding provided to these agencies will be utilized to hire additional staff and counselors to work with homeowners on foreclosure alternatives, as well as provide counseling help for consumers at risk of losing their homes.

Goddard will be joined by the directors and members of the recipient boards for a presentation and round table discussion about foreclosure issues and solutions they may have to this problem facing southern Arizona residents.

WHY: “I am committed to working on the housing crisis until it is resolved”, Goddard stated. “It is our hope that these settlement funds will have a positive impact by helping families to remain in their homes. Homeowners should exercise great caution before paying for any foreclosure ‘rescue’ services. These resources will provide free help to struggling borrowers”.

WHEN: Tuesday, January 26, 2010
1:15 p.m. - 2:45 p.m.

WHERE: El Pueblo Neighborhood Community Center
Senior Center Room 105
101 W. Irvington Road
Tucson, Arizona 85714

CONTACTS: For additional information, contact Molly E. Edwards at (602) 542-8019 or Karen Scates at (602) 542-8930.

Press Release - Countrywide - 1-14-10.html
Foreclosure Counseling Support 1-14-10.pdfl

###

(Phoenix, Ariz. – Jan 22, 2010)  Attorney General Terry Goddard today received a Historic Preservation “Recognition of Leadership” award from the National Trust for Historic Preservation Community Investment Corporation (NTCIC).

In over 18 years, Goddard held leadership positions on the Trust board. He served as Chair of the Investment Committee for the past nine years.     

Goddard was presented with this award because “Under his leadership, the Committee has approved 62 transactions, totaling $355,843,991 in gross equity and debt (over $1.2 billion in project value),” stated the NTCIC Committee.

Goddard has long been a committed leader and advocate for preserving communities and building economic development opportunities in Arizona and across the U.S.  As mayor of Phoenix in the 1980s, he created the city’s first historic preservation program. Buildings preserved under this program include the Orpheum Theater, Tovrea Castle and U of A Medical School-Phoenix.

“I believe strongly that our community can only move forward if we have an appreciation for our past,” Goddard said. “The work we do today to preserve our heritage is a gift we give to future generations.”

"Phoenix is not known as a place that celebrates its past,” said Grady Gammage, who was a member of the city’s first historic preservation commission. “When Terry became mayor, there was no program.  He single-handedly got the city to notice the issue and how important it was.  The Phoenix program has designated a higher percentage of its building stock than any other big city in the country. Terry is responsible for taking historic preservation from 0 to one of the most respected programs in the country."

###

(Phoenix, Ariz. - Jan 21, 2010)  Attorney General Terry Goddard today reminded East Valley residents that he will be hosting one in his series of Senior Anti-Crime Universities on Thursday, January 28, at Leisure World in Mesa.

Goddard will be joined by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

The Senior Anti-Crime Universities are designed to teach attendees to detect scams against seniors and help others avoid frauds and abuse. Each university will offer a half-day of classes in consumer fraud and scams, identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and ripoffs. Protecting seniors has long ranked as a top priority for the Attorney General's Office, and this program moves our efforts up another notch." Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html .  

Space is limited, so advance registration is required.  To register online or get more information, go to the SENIORS tab at the Attorney General's Web site ( www.azag.gov ) and click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

What: East Valley Senior Anti-Crime University
When: Thursday, January 28
Time: 8 a.m. - 12 p.m.
Where: Leisure World
             908 S. Power Rd.
             Mesa, Ariz.
Note: Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

SACU_Flier.pdf
SACU Reg Form Mesa 1-28_C_2- Mesa.pdf
SeniorSleuthApplication.pdf

###

(Phoenix, Ariz. - January 19, 2010) Attorney General Terry Goddard and Pinal County Attorney James Walsh will host a Crime and Fraud Prevention Forum in Casa Grande on Tuesday, January 26, beginning at 6 p.m. The forum will take place in the Casa Grande City Council Chambers, 510 E. Florence Blvd.

Goddard and Walsh will be joined by Pinal County Supervisor Chairman David Snider, Casa Grande Mayor Bob Jackson and Chief of Police Robert Huddleston.

The forum, which is open to the public, is being held to increase awareness of local crime trends, discuss prevention strategies and give citizens an opportunity to voice questions and concerns.  Topics will include border crime, mortgage fraud, methamphetamine abuse, consumer fraud and identity theft.

Goddard’s video message with additional information on the forum is available on the Attorney General’s Web site at http://www.azag.gov/ResourceCenter/CrimeForum/ .  Media are invited to re-post this message on their Web sites and community calendars.

Event Information

What:       Casa Grande Crime and Fraud Prevention Forum
When:       Tuesday, January 26
            6 p.m.
Where:  Casa Grande City Council Chambers
510 E. Florence Blvd.
Casa Grande, Ariz.
Note:       This event is open to the media and the public.

Attached is the flyer for the event.

CF_CasaGrande_1-26-10_Flier.pdf
CaseGrandeCrimeForumInvite.mp3

###

(Phoenix, Ariz. -- Jan. 15, 2010) Attorney General Terry Goddard today sent a letter to Arizona's Congressional delegation, opposing the so-called "Nebraska Compromise" in federal health care legislation and asking them to strip it from the bill.

That provision, added in the U.S. Senate as an incentive for Nebraska Sen. Ben Nelson to vote for the measure, would exempt Nebraska from paying additional Medicaid costs at the expense of Arizona and every other state.

"The 'sweetheart deal' for Nebraska is a rotten deal for Arizona and every other state," Goddard said. "This provision is poor public policy and needs to be removed before this important health care bill is enacted."

Last week, Goddard asked Gov. Jan Brewer to join him in signing the letter, but the governor declined.

"I was surprised and disappointed that the Governor was unwilling to join me in this letter,” Goddard said. "The message would have been stronger if we could have acted together."

A copy of the Attorney General's letter to Arizona's U.S. Senators and Representatives is attached.

Healthcare delegation letter 1-15-10.pdf

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(Phoenix, Ariz. - Jan. 15, 2010)  Attorney General Terry Goddard reminds Arizona middle school students that time is running out for participation in the 2010 Arizona Meth Project’s “NOT EVEN ONCE” poster contest.  The effort is designed to raise awareness of the dangers methamphetamine abuse poses to young people. Arizona 7th and 8th grade students are eligible to enter.   This is the first year that the contest is being extended to include 7th graders.

Poster submissions must be received by 5 p.m. on January 29, 2010.

Contest results will be announced in February.  Contest winners will received first, second, and third places prizes of $500, $350 and $100.  There will also be honorable mention prizes, courtesy of local retailers.  Winning submissions will be printed on a full-sized poster and used throughout 2010 in the Arizona Meth Project’s statewide public awareness campaign.

“Our statewide efforts to cut meth use among teens have shown encouraging results, but we still have a long way to go,” said Goddard. “It is my hope that by giving students the opportunity to reach out to one another, we can do even more to fight this devastating drug.”

For additional information and contest rules, go to www.azag.gov .

NotEvenOncePosterContest.mp3

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(Phoenix, Ariz. -- Jan. 14, 2010) The Attorney General's Office announced today that Phoenix Police Officer David H. Barnes, 42, of Anthem, and Jeffrey M. Pataky, 41, of Phoenix, have been indicted by the State Grand Jury. Barnes was indicted on charges of perjury, a Class 4 felony, and harassment, a Class 1 misdemeanor. Pataky was indicted on charges of perjury and false swearing, a Class 6 felony.

Barnes, a 14-year Phoenix Police Department veteran, is a former homicide detective and patrol officer who is currently on administrative leave. He is accused of harassing two other members of the department through an anonymous letter and email communications. Pataky operates a Web site on which some allegedly harassing content was posted.

The perjury charges relate to sworn testimony made by the defendants during a family court hearing last year that they did not know each other prior to Nov. 15, 2008, and did not have a personal relationship prior to that date, when evidence allegedly showed otherwise.

The false swearing charge against Pataky relates to sworn statements he made that he did not own or manage an Internet site, when evidence allegedly showed that he owned or managed at least one site.   

The investigation was conducted by the Phoenix Police Department. A copy of the indictment is attached.

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(Phoenix, AZ- Jan. 14, 2010) - Attorney General Terry Goddard today announced that the State will provide a substantial increase in assistance for Arizona homeowners facing foreclosure as a result of a consumer fraud settlement with the Attorney General’s Office.

Twelve nonprofit housing counseling entities in Arizona will receive a combined $1.3 million from a multi-state consumer fraud settlement last year with Bank of America (which acquired the defendant, Countrywide). The money will be used to hire additional staff and counselors to work with homeowners on foreclosure alternatives, as well as provide counseling help for consumers at risk of losing their homes.

The settlement resolved allegations that Countrywide, prior to 2008, used unfair and deceptive tactics in its loan origination and servicing activities and placed borrowers in structurally unfair and unaffordable loans.

The amounts being awarded to Arizona community groups will help homeowners in Phoenix, Tucson and underserved regions of the state, including rural counties. (See the attached sheet for community groups and dollar amounts.)

“It is our hope that these settlement funds will have a positive impact on families throughout the state who are in great need of counseling assistance to help them stay in their homes,” Goddard said. “The problem is so acute that additional staff can make a big
difference.  Homeowners should exercise great caution before paying for any foreclosure “rescue” services. More helpful services are being provided for free by these HUD-approved housing counseling agencies.”

Arizona continues to be at the center of the housing crisis, along with Florida, California and Nevada. About 6 percent of all housing units in Arizona received a foreclosure filing in 2009. National data released today show a record 2.8 million households were threatened with foreclosure notices last year - a 21 percent increase over 2008. About 20 percent of all mortgages nationally are “under water” with negative equity; in  Arizona, the estimate is 68 percent.

“Until the housing crisis is resolved, the Arizona economy cannot fully recover,” Goddard noted.

Free help is available to homeowners who have questions or need help working through their housing situation form the Arizona Foreclosure Prevention Helpline at 1-877-448-1211.  Callers will be directed to local housing counseling agencies approved by HUD.

Arizonans who believe they have encountered fraudulent activity through so-called "rescue" scams can file a complaint with the Arizona Attorney General’s Office, Consumer Information & Complaints, www.azag.gov or 602-542-5763 (Phoenix); 520-628-6504 (Tucson) 800-352-8431 (outside Phoenix or Tucson metro area).

For additional information, contact Molly E. Edwards at (602) 542-8019.

Foreclosure Counseling Support 1-14-10
CountryWide1.mp3
CountryWide2.mp3

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(Phoenix, Ariz. - Jan. 14, 2010) Attorney General Terry Goddard and the Federal Trade Commission (FTC) have filed a joint lawsuit in U.S. District Court against Government Careers Inc. (GCI) and owners Jon Coover, Richard Friedberg, and Rimona Friedberg for engaging in allegedly deceptive employment services. GCI’s primary office is in Tucson.

The Attorney General’s Office estimates that as many as 10,000 people across the country are victims, including more than 1,500 Arizona residents.

“In this time of economic trouble, many consumers who are desperate to find jobs are drawn in by companies promising far more than they deliver, “ Goddard said. “This company went so far as to guarantee jobs in federal agencies that were not hiring new employees.”

The lawsuit alleges that beginning last spring, GCI began falsely advertising nationwide its services as a legitimate government career center to attract consumers desperate to find jobs. Through its ads, GCI would promise “guaranteed success” in finding government employment in the areas of the National Park Service, U.S. Forest Service, Postal Service and Border Patrol. Although GCI advertised that there were thousands of Postal and Border Patrol openings, both agencies had hiring freezes. It was only after consumers contacted GCI, they would learn that the company sells “study materials” ranging from $114 to $119 to help them pass the federal employment exams that GCI allegedly claimed all federal agencies require.

The lawsuit further alleges that GCI contacted consumers who posted their resumes on Careerbuilder.com and Yahoo! Hot Jobs to offer them a $965 employment counseling package which included a company guarantee that the consumer would obtain career counseling and federal government employment. GCI would then tell consumers that they did not have to pay for the counseling until they landed a job. The Attorney General alleges that to the contrary, GCI would charge consumers’ credit cards immediately once they signed up. Additionally, the lawsuit states that GCI did not provide counseling services.

The lawsuit alleges that Government Careers Inc. violated the Arizona Consumer Fraud Act and the FTC Act by:

• Deceptively misleading consumers into believing that GCI would or could guarantee government employment when it was not the case.
• Falsely advertising jobs in the U.S. Customs and Border Protection and the U.S. Postal Service during specific time periods when such jobs were not available.
• Deceptively misleading consumers into believing that certain federal agencies required consumers to take a written test to obtain federal employment.
• Failing to honor its guarantee that they would refund consumers who did not receive federal jobs.
• Failing to provide up to date and useful information to consumers in its educational packages.

In the lawsuit, Goddard and the FTC request that the court order Government Careers Inc, Coover, Friedberg, and Friedberg to:

• Refrain from violating the Arizona Consumer Fraud Act and the FTC Act.
• Pay full restitution to all consumers.
• Pay the State of Arizona a civil penalty of up to $10,000 for each violation of the Consumer Fraud Act.
• Reimburse the Attorney General’s Office for its costs of investigation and legal action in this matter.
• Permanently enjoin Government Careers Inc., its owners, and affiliates from engaging further in this line of business.

On January 5, 2010, the Federal Court issued a temporary restraining order and permitted the FTC and the State to seize assets to be used for restitution. A hearing is set for Jan. 19 on the preliminary injunction in U.S. District Court in Tucson.

Consumers who have complaints against this company can file a complaint online at http://www.azag.gov/AllComplaints.html#consumer or call Arizona Attorney General’s in Tucson at 520-628-6504.

The Attorney General extends his appreciation to the Better Business Bureau of southern Arizona for its assistance in this case.

This lawsuit was filed by Assistant Attorney General Noreen R. Matts. For additional information, contact Molly Edwards at (602) 542-8019.

Government Careers Inc, Audio Clip

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(Phoenix, Ariz. - Jan. 13, 2010) The Attorney General's Office, Civil Rights Division, in partnership with the Arizona Supreme Court Administrative Office of the Court, is offering a free 40-hour mediation course to train volunteers to help resolve court disputes specifically for the Northwest Regional Justice Court, 14264 W. Tierra Buena Lane, Surprise, Ariz.

Mediators are neutral parties who try to help disputing parties reach agreements in various types of cases. Mediation is a valuable alternative to litigation; it can save time and money and reduce stress.

This training course is open to the public. Disputes to be mediated can include small claims, commercial, truancy and other types of cases. The Attorney General's Office has been training mediators for the courts since 1984 and has its own volunteer mediation program for resolving civil rights cases.

The 40-hour mediation training will be offered at the following time and place:  

    -- Surprise City Court, Surprise, Ariz., February 1- 5, 2010

Training sessions will run each day from 8:30 a.m. to 4:30 p.m. and include a working lunch. Participants must complete all five days of the scheduled training to become eligible to mediate for the NW Regional justice courts. After applicants successfully complete the 40-hour training, they will be asked to complete a Justice Court Mediation Application, sign off on an ethics and program requirement form and submit to a fingerprint/background check. Completion of the 40-hour training, forms and background check does not guarantee acceptance into the mediation program.

Space is limited and advance registration is required. For more information or to register for this training session, please contact Kathy Plitt, Conflict Resolution Program Coordinator, Arizona Attorney General's Office, Civil Rights Division. Kathy can be reached by phone in Phoenix at 602-542-7657 or by e-mail at Kathy.Plitt@azag.gov.

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(Phoenix, Ariz. - Jan. 13, 2010) Attorney General Terry Goddard today filed a lawsuit against a Phoenix-based mortgage loan modification company, Asset Creation, LLC, and its owner, Marvin Williamson, for engaging in allegedly deceptive practices. This lawsuit is the latest action in the Attorney General’s crackdown on mortgage loan modification businesses that use misleading advertising or engage in other fraudulent practices.

More than 2,500 consumers have contracted with Asset Creation for loan modification services in the past two years.

“I am committed to fighting deceptive practices targeted at homeowners who are struggling to make their payments,” Goddard said. “Instead of providing assistance, too many loan modification companies pocket large upfront fees and fail to obtain any kind of mortgage relief.”

The lawsuit alleges that since January of 2008, Asset Creation falsely represented its loan modification services to consumers throughout the Phoenix metropolitan area on its web sites and in local Spanish language media. According to court documents, Asset Creation charged consumers upfront fees ranging from $1,680 to $3,430 for loan modification services, after representing in newspaper ads that it could obtain a 50 percent reduction in the homeowners’ mortgage payments and stating on its web sites that it could help any homeowner, regardless of their situation.

In addition, the company provided all potential applicants a "Client Proposal" that highlighted a new mortgage payment that was approximately 20 percent lower than the consumer's current payment. The lawsuit also alleged that Asset Creation falsely represented that it would refund consumers’ money if it could not obtain a loan modification for them and that it had been performing loan modification services for consumers since 2003.

The lawsuit alleges that Asset Creation’s actions violated the Arizona Consumer Fraud Act by:

• Misrepresenting to consumers that it could obtain specific results.
• Falsely representing to consumers that they would receive a refund of their fees if Asset Creation was unable to obtain a loan modification on the consumers’ behalf.
• Misrepresenting that Asset Creation has been providing loan modification services to consumers since 2003.

In the lawsuit, Goddard requests that the court order Asset Creation and Marvin Williamson to:

• Refrain from violating the Arizona Consumer Fraud Act.
• Pay full restitution to all homeowners who paid Asset Creation for loan modification services.
• Pay the State of Arizona a civil penalty of up to $10,000 for each violation of the Consumer Fraud Act.
• Reimburse the Attorney General’s Office for its costs of investigation and legal fees incurred in this matter.

The Attorney General recommends that homeowners who are in or facing foreclosure seek assistance promptly from their mortgage lender or servicer or a government-approved housing counselor. Federal, state and local governments offer numerous free resources for distressed homeowners, including the Arizona Foreclosure Help-Line at 1.877.448.1211. For a list of HUD-approved housing counselors, please refer to HUD’s website at http://www.hud.gov.

Additional tips and resources, including the Foreclosure Information Workbook created by the Arizona Foreclosure Prevention Task Force, are available on the Attorney General’s web site, www.azag.gov. This workbook not only describes the tactics used by deceptive firms but also provides helpful examples of common letters, forms and filings for attempting to modify a loan or otherwise avoid foreclosure.

A copy of the lawsuit is attached. For additional information, contact Molly Edwards at (602) 542-8019.

Asset Creation complaint.pdf

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(Phoenix, Ariz. - Jan. 12, 2010) Attorney General Terry Goddard announced today that Douglas Ross Zuber, 51, of Scottsdale, has been sentenced in Maricopa County Superior Court to six years in prison and seven years of probation. He must also pay $6,196,985 in restitution to Harvard Investments, Inc., in Scottsdale.

Between 1999 and 2006, Zuber embezzled approximately $11 million from Harvard Investments, Inc., where he was employed as an executive vice president, directing their company's investments in real estate. Last August, he pleaded guilty to one count of theft and one count of money laundering, both felonies.

According to investigators, Zuber’s job gave him authority to direct Harvard's investments in several real estate development projects. Zuber conducted an elaborate embezzlement scheme, which included setting up seven false vendors through which he was able to bill work to his company that was never completed.

At the time Zuber’s $11 million theft was uncovered, his lifestyle included a multi-million-dollar Paradise Valley home; a Los Angeles condo; several luxury automobiles; along with jewelry, art and other collectibles.  Along with numerous documents found when the scheme collapsed, investigators discovered a draft of a book Zuber was writing, titled “Deeds of Trust”, which described how to embezzle from your employer.

This case was prosecuted by Assistant Arizona Attorney General Todd Lawson. For additional information, contact Molly Edwards at (602) 542-8019.

Zuber Sentencing release 1-12-10.pdf

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(Phoenix, Ariz. -- Jan. 8, 2010) Attorney General Terry Goddard today asked Gov. Jan Brewer to join him in a letter to Arizona's Congressional delegation, urging them to strip the so-called "Nebraska Compromise" from the federal health care bill. That provision would benefit Nebraska at the expense of Arizona and every other state.

In his request to the governor, Goddard stated that he agreed with a suggestion she made in a Dec. 31 letter to him that they work together on this issue. Along with his letter to Brewer, Goddard included a proposed letter to the State's U.S. Senators and Representatives, expressing strong opposition to the "sweetheart deal" for Nebraska and denouncing it as "poor public policy and not in the best interest of Arizona or the nation."

Copies of Goddard's letter to Brewer and the proposed letter to Arizona's Congressional delegation are attached.

Health Care reform letter from Terry Goddard

(Phoenix, Ariz. January 7, 2010) Attorney General Terry Goddard today announced a $22.5-million settlement with Abbott Laboratories, Fournier Industrie et Sante and Laboratories Fournier, S.A., resolving antitrust claims involving the cholesterol drug TriCor.

Tricor is used to reduce high levels of triglycerides and cholesterol.  It accounted for more than $1 billion of Abbotts sales last year.

The savings from lower-cost generic drugs were not available to consumers and government agencies because of these companies manipulative practices, Goddard said. This settlement underscores my commitment to keeping the marketplace fair and competitive. 

In 2008, Arizona, 24 other states and the District of Columbia filed suit in Delaware Federal District Court alleging that Abbott and Fournier blocked generic competition for Tricor. The suit alleged that the companies thwarted generic competition to Tricor using a variety of strategies, including a practice called product switching. Under this practice, the companies made clinically insignificant changes in the dosage and form of Tricor, removed older versions of TriCor from the market and manipulated the drug codes needed to facilitate generic substitution. As a result, pharmacists were not able to dispense less costly versions of TriCor.   

The states also alleged that Abbott and Fournier engaged in sham litigation regarding patents they knew were invalid, unenforceable or inequitably obtained for the purpose of preventing or delaying generic competition. Due to Abbott and Fourniers conduct, state and local entities have had to pay higher prices for TriCor because their conduct blocked the lower-priced therapeutically equivalent generic versions of TriCor from the market.

If approved by the court, the settlement will reimburse governmental purchasers for overcharges paid for Tricor. Abbott and Fournier have also agreed not to delete the drug codes for the latest version of TriCor in the event a generic manufacturer seeks FDA approval of a generic version of Tricor until a specified time has lapsed. The settlement will also reimburse the participating Attorneys General for fees and costs.
Arizona will recover more than $270,000 from the settlement.
  
The companies agreed to a separate, $184 million settlement in 2008 with pharmacies, wholesalers and generics makers. Consumers and third-party payers who were harmed by the defendants alleged anti-competitive conduct will recover their damages through a class-action settlement that was reached in the fall of 2009.

French drug company Fournier, which developed TriCor, was acquired by Belgian company Solvay in 2005.

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(Phoenix, Ariz. -- Jan. 6, 2010) Attorney General Terry Goddard today announced that Molly E. Edwards has been named press secretary for the Arizona Attorney General's Office. She will be working with Communications Director Steve Wilson to meet the needs of the media and respond to public inquiries. She replaces Anne Hilby, who left the office last week to work in a political campaign.

Edwards brings more than 12 years experience in government affairs and media relations to the job. She worked 10 years for the City of Scottsdale, serving as manager of the city's Community Mediation Program and later its Housing Resources Program. She more recently operated her own public relations business.

Her background includes a term as president of the World Affairs Council of Arizona and completion of the Global Leadership Executive Program at the Thunderbird Garvin School of International Management. She is a graduate of the FBI Citizens Academy, Valley Leadership and Scottsdale Leadership. In 2007, she was chosen by the Phoenix Business Journal as one of its "40 under 40" honorees.      

Edwards earned a degree in urban planning and environmental design from Arizona State University. She is currently a Master's/Ph.D. candidate in political science at Northern Arizona University.

She and her husband, Mike, and their young son live in Scottsdale.

She is starting her new job this week and can be reached at (602) 542-8019 and at Molly.Edwards@azag.gov.

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(Phoenix, Ariz. – Dec. 31, 2009) Attorney General Terry Goddard today sent the attached letter to Governor Jan Brewer in response to her request that Goddard review the legality of the federal health care bill.

For more information, contact Steve Wilson at (480) 225-6422.

Gov. Brewer Nebraka Benefit Legal Review

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(Phoenix, Ariz. – December 23, 2009) Attorney General Terry Goddard today announced that former Marana Police Officer Calvin Ingram, 39, has been indicted on 25 counts of computer tampering, one count of trafficking in the identity of another person and one count of aggravated taking the identity of another person. The charges include 25 Class 6 felonies, one Class 3 felony and one Class 2 felony.

According to court documents, Ingram misused his access to police databases for non-law enforcement purposes. Ingram accessed databases ACJIS, “Spillman” and “CopLink,” all of which house sensitive information relating to driver registrations, criminal backgrounds, home addresses and other personal information of Arizona citizens.

Documents state that Ingram accessed these databases 89 times between October 2008 and September 2009 for his personal use. Ingram is accused of then disseminating this information to non-law enforcement persons.

Ingram served almost 11 years with the Marana Police Department before he was dismissed in September 2009.  He is challenging the dismissal, and a hearing is set for late next month.

This case is being prosecuted by Assistant Attorney General Michael Jette in Pima County Superior Court.

A copy of the indictment is attached. For more information, contact Steve Wilson at (602) 542-8351.

Ingram Indictment

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(Phoenix, Ariz. – Dec. 21, 2009) Attorney General Terry Goddard today announced that Charles Bruce Ferguson, 41, of Scottsdale, has been sentenced to five years in prison, followed by seven years probation and restitution of $3,105,000, for operating elaborate investment schemes that defrauded at least 42 people of more than $3 million since 2005.

Ferguson was indicted in November 2008 and again in January 2009. In November 2009, he pleaded guilty to two counts of theft, a Class 2 felony.

In 2005 and 2006, Ferguson solicited seven individuals to invest amounts ranging from $5,000 to $50,000 in a project to purchase a Mesa apartment complex and convert it into condominium units which would then be sold. Ferguson raised only $165,000, a small fraction of the amount required to purchase the apartment complex. About $100,000 of that amount was expended on fees and other costs associated with holding the monies in escrow.

Court documents state that Ferguson did not disclose to investors that such a loss was possible. Documents also describe that, at the time the project fell through, Ferguson made numerous verbal and written misrepresentations to investors to cover up these losses, including falsifying documents that purported to be from Washington Mutual Bank and the City of Mesa. Victims did not receive any of the promised returns, and most lost their principle investment as well.

Ferguson also perpetrated a second elaborate scam from 2006 to 2008. According to investigators, he solicited investments to purchase multi-million-dollar bank instruments, such as certificates of deposit or lines of credit.  Investors were instructed to wire money under an agreement that the funds would be held as collateral in an account until the investment paid out over the course of several months.

Ferguson, however, altered the investment agreements without investors’ consent to allow him immediate access to the funds.  When the time came for the investment to begin paying out, Ferguson again covered up the true reasons for failing to provide returns to investors as he had promised.  Investigators never found evidence that the instruments were ever actually purchased.

Numerous victims invested money in this supposed high-yield investment program after learning about the investment opportunity through Craigslist. They were promised returns of up to $800 million over a short period of time.  In some cases, Ferguson also promised that the investments would be used to fund global humanitarian efforts that paid a high rate of return.

Ferguson, who was not licensed to sell securities, used the victims’ money to purchase a Scottsdale condominium, luxury car, over $150,000 in high-end jewelry, at least $30,000 in tickets for luxury seats at local sporting events and $30,000 on private jet rental fees. Another $100,000 was traced to an alleged offshore tax haven. Forfeiture of these assets is pending.

Assistant Attorney General Todd Lawson prosecuted this case in Maricopa County Superior Court.

If you believe you have been a victim of fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504 or outside the Phoenix and Tucson metro areas at 1.800.352.8431.  To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site. Consumers can also file complaints online by visiting the Attorney General's Web site at www.azag.gov.

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(Phoenix, Ariz. – Dec. 18, 2009) Attorney General Terry Goddard released the following statement regarding H.B. 2001, General Appropriations, Reductions and Transfers, as passed by the Arizona House of Representatives Appropriations Committee early this afternoon.   

“The present budget proposal is a direct assault on public safety in Arizona. By seizing additional money from key funds through excess budget transfers – far above and beyond the across-the-board cuts – the budgets of public safety offices, particularly the Attorney General’s Office, are hurt in a vastly disproportionate way.   

“This proposal will jeopardize my efforts to fight organized crime, stop border violence and provide for the safety of Arizona’s citizens. In particular, the anti-racketeering fund, which funds many criminal prosecutors and investigators, is decimated under this proposal.  The consumer fraud fund, also hit by this proposal, pays for enforcement against those who prey upon the vulnerable in our society and protects our citizens against mortgage fraud, predatory lenders, fraud by pharmaceutical companies and a growing number of consumer scams.  

“Recent budget cuts have taken more than a fair share of funds from this Office. The Attorney General’s Office represents less than 2/3rds of 1 percent of the State’s budget. Under this proposal, we are taking 5 percent of the overall cuts and over 10 percent of the excess budget transfers. The total cut to the AG’s budget is over 14 percent – almost double the 7.5 percent, across-the-board cut to state agencies.

“The cumulative impact of recent budget cuts to the AG’s Office has been severe. The total of 482 fulltime employees at the start of this fiscal year was 129 fewer appropriated fulltime positions than a decade ago. Dollars to the Office from the State’s general fund for this fiscal year were fewer than any year since 1995. This new round of cuts would take us back to the level of funding in 1990. General fund appropriations to this Office are down 23 percent in the past 18 months.      

“I urge the Legislature act in support of protecting all Arizonans and not continuing the attack on public safety and the Attorney General’s Office. It is not only fundamentally fair, it is the right thing to do for the people of Arizona who count on us to protect them.”

12.18.09 Budget audio.mp3

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(Phoenix, Ariz. – Dec. 17, 2009) Attorney General Terry Goddard today made the following statement about the death of Mexican cartel leader Arturo Beltrán Leyva, who was killed late Wednesday following a gun battle with Mexican military Special Forces in Cuernavaca.

"I commend President Calderón and the brave men and women of the Mexican military and law enforcement for their courageous fight against the drug cartels that threaten public safety in both our countries. Yesterday’s death of Arturo Beltrán Leyva demonstrates that these efforts are succeeding and destabilizing the cartels at even the highest levels of power.”

“The fight to restore the rule of law along the U.S.–Mexico border is far from over. The recent drug bust in Tempe involving 130 individuals, including many alleged to have cartel ties, underscores the need for U.S. and Mexican law enforcement to intensify our efforts to work together to combat the cartels.”

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(Phoenix, Ariz. – Dec. 17, 2009)  Attorney General Terry Goddard; Michael Bender, Regional Vice President of Walmart; and Allie Bones, Executive Director of the Arizona Coalition Against Domestic Violence, today announced a new statewide domestic violence prevention campaign, “End the Silence, End the Violence.”

This campaign will provide women with information on how to find help and keep themselves and their families safe from domestic abuse. It is expected to reach as many as 455,000 women each week.

Starting this week, Walmart will display End the Silence, End the Violence awareness posters in the women’s bathrooms of all of its 91 stores statewide. The poster features information on the 24-hour domestic violence resources available to Arizonans. This includes access to emergency shelter services as well as legal assistance, case management and counseling.  

“I am committed to a system of justice that holds offenders accountable for their actions as well as remembers and respects the victims of crime,” Goddard said. “The End the Silence, End the Violence campaign says domestic violence is unacceptable and that we as a community and State will not tolerate it.”

"Walmart is committed to helping people live better.  Through these posters we want to let our customers know that if they, or someone they know, are living in an abusive situation, there are resources available to help them make a change for the better," said Michael Bender, Regional Vice President of Walmart.

“The Arizona Coalition Against Domestic Violence is proud to be a part of the End the Silence, End the Violence campaign,” Allie Bones, Executive Director, exclaimed.  “As an organization committed to raising the profile of the issue of domestic violence and ensuring that victims know of resources available in the community, we embrace opportunities that convey to a broad audience that lifesaving services are available for victims of domestic violence.”   

Law enforcement alone cannot solve the problem of domestic violence. Early intervention and appropriate services are also needed to stop abuse from continuing. This is especially critical because when abuse continues, there is a tendency is for the violence to escalate. Access to information about services available is a barrier that isolated and abused women face.  Partnerships that bring private, community and law enforcement resources together to help victims find the information and community support they need are critical for addressing this tragic and all-to-common crime.

The End the Silence, End the Violence campaign is uniquely positioned to reach women suffering in an abusive home. The hope is that by having information available in a non-traditional space, such as Walmart stores, it will reach those who otherwise might not have an opportunity to know that help is available.  This campaign has the potential to truly save lives.

Additional Information & Statistics
This is the third state in which Walmart has partnered with an Attorney General to prevent domestic violence. Recently, the national retailer partnered with the Kansas and Oklahoma Attorneys General.

The Arizona Coalition Against Domestic Violence was formed in 1980 so that concerned citizens and professionals could unite through this statewide organization to increase public awareness about the issue of domestic violence, enhance the safety of and services for domestic violence victims, and reduce the incidence of domestic violence in Arizona families. Since its inception, the Coalition has served as an advocate and a voice representing the needs of domestic violence service providers and the victims they serve throughout Arizona.

The End the Silence, End the Violence campaign is one of many resources provided by the Attorney General’s Office to victims of domestic violence and other violent crimes. In 2005, Attorney General Terry Goddard, the Arizona Coalition Against Domestic Violence and the Arizona State Board of Cosmetology established the CUT IT OUT program in Arizona. This national outreach program draws on the cosmetology community's unique skills and access to women by providing salon professionals training and information on how to spot the signs domestic violence.
The Attorney General’s Office of Victim Services provides services to facilitate justice and healing for Arizona’s crime victims as well as to support criminal and juvenile justice system entities statewide in the administration of victims’ rights laws. These include the Victims’ Rights Program which provides financial assistance to criminal justice agencies, the Victims’ Rights Enforcement Program and Victims’ Rights Training.
In fiscal year 2009, the National Domestic Violence Hotline received 22,358 calls, and the Arizona Coalition Against Domestic Violence’s Legal Advocacy Hotline received 2,354 calls from victims/survivors of domestic violence.

Also that year, 11,209 Arizona adults and children received services from 32 shelters in 13 counties. The average length of stay in emergency shelter was 33 days. A total of 373,601 nights of shelter were provided to adults and children during the year. Forty-seven percent of those who received emergency shelter services were children.  

Approximately 125 women die every year in Arizona as a result of domestic violence.  In addition, 15-25 perpetrators commit suicide each year in Arizona. There have been 103 domestic violence-related homicides in Arizona so far in 2009.

In Arizona, every five minutes a law enforcement officer responds to a domestic violence call. An estimated 4.5 million physical assaults are committed against U.S. women by intimate partners each year.

Domestic Violence Prevention Campaign Poster

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(Phoenix, Ariz. -- Dec. 16, 2009)  Attorney General Terry Goddard will host a Senior Anti-Crime University on Wednesday, January 6, in Sun City West. The program will start at 8 a.m. at the Sun City West Foundation.

Goddard will be joined by local leaders and experts in consumer scams, investment fraud, personal safety, elder abuse, financial exploitation and other issues affecting seniors.

The Senior Anti-Crime Universities are a statewide series of forums designed to teach attendees to detect frauds and other consumer abuse commonly perpetrated against seniors. Each university offers a half-day of classes in consumer fraud and scams, identity theft, life care planning/health care directives, Medicare/Medicaid fraud, financial exploitation, elder abuse and neglect, Internet safety and charitable giving.

"Keeping Arizona seniors well-informed provides the best defense against frauds and scams," Goddard said. "The Anti-Crime University will present a wealth of useful information to identify and prevent all manner of schemes and rip-offs. Protecting seniors ranks as a top priority for the Attorney General's Office, and this program moves our efforts up another notch." Learn more about the anti-crime universities from Goddard in his video message available at http://www.azag.gov/seniors/sleuths/sacu.html .  

Space is limited, so advance registration is required.  To register online or get more information, go to the SENIORS tab at the Attorney General's Web site ( www.azag.gov ) and click on ‘Senior Anti-Crime University’ or email SeniorSleuths@azag.gov.

Event Information

What:       Northwest Valley Senior Anti-Crime University
When:       Wednesday, Jan. 6
Time:       8 a.m. - 12 p.m.
        Goddard will speak at approximately 8:30 a.m.
Where:  Sun City West Foundation
14465 W. R.H. Johnson Blvd.
Sun City West, Ariz.
Note:       Event is open to the media.  

The Senior Anti-Crime University is part of the Attorney General’s new Senior Sleuths project. Senior Sleuths is a volunteer program to help Arizona seniors protect themselves and prevent others from becoming victims of fraud and abuse. The Attorney General’s Office is recruiting senior volunteers and will be training them to identify and report scams and fraud and to use their knowledge to educate other seniors.

The Senior Anti-Crime University and Senior Sleuths project are partnering with AARP, DES Division of Aging & Adult Services, SMP (Senior Medicare Patrol), Arizona Area Agencies on Aging, Duet, All Arizona School Retiree Association, local police departments and other retiree and senior organizations.

Copies of the Senior Anti-Crime University flyer and registration form, along with the Senior Sleuth application form, are attached.

Printable registration form
Printable Sr. Anti-Crime University flyer
Senior Sleuths Application

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(Phoenix, Ariz. -- Dec. 15, 2009) Attorney General Terry Goddard today urged all Arizonans, especially those with children in their homes, to take note of a national recall of all Roman shades and roll-up blinds announced earlier today.

The U.S. Consumer Product Safety Commission (CPSC), in conjunction with the Window Covering Safety Council (WCSC), said today that all Roman shades and roll-up blinds are being voluntarily recalled due to the risk of strangulation to young children. Millions of these window coverings are sold in the United States each year. The CPSC has received reports of eight deaths and 16 near-strangulations in connection with these products in recent years.

According to federal regulators, anyone with Roman shades or roll-up blinds in their home should contact the WCSC immediately at www.windowcoverings.org or (800) 506-4636 to receive a free repair kit.

Federal regulators also gave the following guidelines for those with children in their homes:

-   Examine all shades and blinds in the home. Make sure there are no accessible cords on the front, side, or back of the product. CPSC and the WCSC recommend the use of cordless window coverings in all homes where children live or visit.
-   Do not place cribs, beds, and furniture close to the windows because children can climb on them and gain access to the cords.
-   Make loose cords inaccessible.
-   If the window shade has looped bead chains or nylon cords, install tension devices to keep the cord taut.

Additional information on this recall is available from the CPSC on their Web site, www.cpsc.gov, or by calling (800) 638-2772.

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(Tucson, Ariz. - Dec. 11, 2009) The Attorney General's Office Civil Rights Division, in partnership with the Arizona Supreme Court Administrative Office of the Court, is offering a free, 40-hour mediation course to train Pima County volunteers to help resolve local court disputes.

The 40-hour mediation training will be offered in Tucson, February 17, 18, 19, 22 and 23.

Mediators are neutral parties who help disputing parties reach agreements in various types of cases. Mediation is a valuable alternative to litigation; it can save time and money and reduce stress.

These training courses are open to the public. In exchange for the free training, those who successfully complete the course must agree to mediate a certain number of disputes for the court on a volunteer basis. Each court has its own requirements and application procedures to become a volunteer mediator. Disputes to be mediated can include small claims, commercial, truancy and other types of cases, depending on the court program.

The Attorney General's Office has been training mediators for the courts since 1984 and has its own volunteer mediation program for resolving civil rights cases.

Training sessions will run each day from 8:30 a.m. to 4:30 p.m. and include a working lunch. Participants must complete all five days of a scheduled training to become eligible to mediate for the courts. Please note that most courts require volunteers to successfully complete an application process, which includes background checks, to be accepted as a volunteer. Space is limited and advance registration is required.

For more information or to register for the training, please contact Adam Glaser, Conflict Resolution Program Coordinator, Arizona Attorney General's Office, Civil Rights Division. Adam can be reached by phone at (520) 628-6782 or by e-mail at Adam.Glaser@azag.gov

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(Phoenix, Ariz. - Dec. 10, 2009)  Attorney General Terry Goddard today invited Pima County residents to shred old documents in an effort to prevent identity theft. On December 19, the Attorney General’s Office will co-host a free shred-a-thon at Rural/Metro Fire Department #76 in Tucson from 9 a.m. to noon.

“Consumers must be vigilant protecting themselves from identity theft,” said Goddard. “Instead of throwing out old documents, residents should shred them to ensure personal information doesn’t fall into the wrong hands.”

The Attorney General’s Office will be joined by the Pima County Sheriff’s Office, Tucson Police Department and Tucson Fire Department. Shredding is provided by AVID.

Residents are encouraged to bring old bills, tax returns older than seven years, medical records and other documents containing personal identifying information to shred.

While shredding old receipts is encouraged, Goddard also noted that consumers should keep receipts from items purchased this holiday season. Having printed copies of receipts, warranties and service agreements helps you negotiate any refunds or exchanges should you have a problem or decide to return the product. For more holiday shopping information, consumers are encouraged to read the Attorney General’s Holiday Consumer Tips at http://www.azag.gov/consumer/holiday/ .

Event Information:

What:       Tucson Shred-A-Thon
When:   December 19
        9 a.m. - noon
Where:  Rural/Metro Fire Department #76
490 W. Magee Rd.
Tucson, Ariz.

Shred-aThon Goddard Audio 12-09.mp3
Shred A Thon Flyer Tucson 12.09.pdf

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(Phoenix, Ariz. - Dec. 10, 2009)  Attorney General Terry Goddard today invited West Valley residents to shred old documents in an effort to prevent identity theft. On December 19, the Attorney General’s Office will co-host a free shred-a-thon at the Avondale City Hall from 9 a.m. to noon.

“Consumers must be vigilant protecting themselves from identity theft,” said Goddard. “Instead of throwing out old documents, residents should shred them to ensure personal information doesn’t fall into the wrong hands.”

The Attorney General’s Office will be joined by the Avondale Police Department, Buckeye Police Department, Tolleson Police Department and Goodyear Police Department. Shredding is provided by Cintas.

Residents are encouraged to bring old bills, tax returns older than seven years, medical records and other documents containing personal identifying information to shred.

While shredding old receipts is encouraged, Goddard also noted that consumers should keep receipts from items purchased this holiday season. Having printed copies of receipts, warranties and service agreements helps you negotiate any refunds or exchanges should you have a problem or decide to return the product. For more holiday shopping information, consumers are encouraged to read the Attorney General’s Holiday Consumer Tips at http://www.azag.gov/consumer/holiday/ .

Event Information:

What:       West Valley Shred-A-Thon
When:   December 19
        9 a.m. - noon
Where:  Avondale City Hall Complex
11465 W. Civic Center Dr.
Avondale, Ariz.

Shred-aThon Goddard Audio 12-09.mp3
Shred A Thon Avondale Flyer. 12.09.pdf

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The Office was asked for an Opinion on whether “school districts that conducted failed budget override elections in November 2009 [could] conduct another override election in March 2010?”

The Opinion concludes that for “fiscal year 2009-2010, the school districts that conducted failed budget override elections in November 2009 may conduct another override in 2010.”

For more information, contact Anne Hilby at (602) 725-2200.

AG Opinion I09-010

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The charges, filed in Santa Cruz County, are a result of a joint investigation conducted by the Nogales Police Department, Benson Police Department, and the Attorney General’s Office Special Investigations Section and Medicaid Fraud Control Unit. Nerey has been charged with one count of fraud, a class 2 felony; one count of theft, a class 2 felony; and 18 counts of forgery, a class 4 felony.

According to the allegations, Nerey embezzled $30,665 from SEABHS between October 2006 and October 2008. During this time, she was employed in the accounts payable division of the organization. Specific allegations include the forging of 18 SEABHS checks which were either deposited into her personal accounts or cashed. 

This case is being prosecuted by the Arizona Attorney General’s Office Medicaid Fraud Control Unit because SEABHS is an Arizona Health Care Cost Containment System (AHCCCS) provider. 

“These allegations represent a serious betrayal of trust to a system that provides important behavioral health services to Arizona most vulnerable population,” Goddard said. “AHCCCS is a critical component in Arizona’s health care system. Theft of already limited funds is a   reprehensible act that threatens the integrity and sustainability of a system like AHCCCS.” 

This case is being prosecuted by Assistant Attorney General Christina Vejar. A copy of the charges is attached.  

For more information, contact Anne Hilby at (602) 542-8019.

Health Services Employee Charged with Embezzling

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“While there have been some positive reports recently, Arizona is far from out of the woods when it comes to stabilizing our housing market. Along with homeowners, local businesses already struggling under the weight of the constricted credit market are at increasing risk of foreclosure on their commercial properties,” Goddard said.

“I am committed to working with the national lenders on Wall Street - especially those that received government bailout money last year - to pass more of those benefits along to consumers and businesses along main street.”

Goddard will also be meeting with members of Arizona’s Congressional delegation to urge them to preserve states’ legal rights to protect consumers from abusive lending schemes. Several potential amendments to the financial regulatory reforms proposed by the Obama administration would limit the authority of state Attorneys General to protect consumers from mortgage fraud and hold national lenders accountable for predatory behavior.

For more information, contact Anne Hilby at (602) 542-8019.

(Phoenix, Ariz. – Dec. 8, 2009) Attorney General Terry Goddard today announced a $175,000 settlement resolving a consumer fraud lawsuit against the owners and operators of Amir & Sanchez Nutraceuticals, a Tucson-based company.

The lawsuit alleges that Larby Amirouche, 20, and Robert Thomas Norton, 22, violated the Arizona Consumer Fraud Act by using deceptive advertising techniques.

According to court documents, the defendants used the Internet to advertise “14-day risk-free” trial offers of various “nutritional supplements,” purportedly for only a nominal cost for shipping and handling. The defendants failed to adequately disclose to consumers material terms and conditions that rendered the trial offers far from “risk-free” and resulted in significant, unauthorized charges to consumers.

Documents also state that the defendants failed to adequately disclose to consumers who ordered a “risk-free trial offer” that unless they canceled within the “14-day trial period” they would be charged full price for the product, plus additional shipping and handling, and would automatically receive subsequent monthly shipments of the product.

The lawsuit further alleges that the defendants falsely represented that consumers could cancel by simply calling a toll-free telephone number, when frequently consumers could not get through to a customer service representative or were put on hold for long periods of time and sometimes disconnected.  Court documents state that many consumers were told that their cancellation request could not be processed due to technical problems or were led to believe that their cancellation request was processed only to be charged for more unauthorized orders.

Additionally, documents state that the defendants deceptively enrolled consumers into “21-day free memberships” of diet consultation programs that required the consumer to take affirmative action to avoid subsequent monthly charges.

The settlement calls for the defendants to pay $140,000 in civil penalties, $15,000 in costs and fees and $20,000 in restitution.

This case is being handled by Assistant Attorney General Cherie Howe, and the lawsuit was filed in Maricopa County Superior Court.

This is the second nutrition supplement fraud case the Attorney General’s Office has settled in recent months. In June 2009, Goddard announced a record $1,375,000 settlement with Central Coast Nutraceuticals, Inc. and its Phoenix owner for allegedly defrauding customers purchasing nutritional supplements.

If you believe that you have been a victim of nutrition supplement fraud or other fraud, please contact the Attorney General’s Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504 or outside the Phoenix and Tucson metro area at 1.800.352.8431.  To file a complaint in person, the Attorney General’s Office has satellite offices throughout Arizona with volunteers available to help.  Locations and hours are posted on the Attorney General’s Web site, www.azag.gov.  An online complaint form is also posted on the Attorney General’s Web site. 

Amir and Sanchez Consent Judgment

(Phoenix, Ariz. – Dec. 7, 2009) Attorney General Terry Goddard today announced that he has filed a lawsuit against David Sasson and David Peer, both of Clearwater, Fla., and Gilad Gill of Bronx, New York, for violating the Arizona Consumer Fraud Act.

Court documents allege that the defendants advertised at least 47 fictitious businesses in the Tucson Yellow Pages. All of these businesses, when called, would allegedly redirect consumers to the same call center in Clearwater, Fla. The call center would then contact a local agent in Arizona to respond to the call and perform the requested services.

The complaint alleges the defendants violated the Arizona Consumer Fraud Act by:

• Falsely representing that consumers had the option of contacting numerous locksmith companies, when all calls redirected consumers to the same call center.
• Falsely representing the location of the businesses.
• Falsely representing that they were members of Associated Locksmiths of America.

Documents also state that an advertisement for Priceline Locksmith, owned by Gill, included the Associated Locksmiths of America’s logo. Gill’s membership in the association was revoked in December 2005, but he continued to use the logo until July 2007.

The lawsuit asks the defendants to pay full restitution to victims and pay a fine of up to $10,000 for each violation of the Consumer Fraud Act. This case is being handled by Assistant Attorney General Taren Ellis in Pima County Superior Court.

“Arizonans have the right to be treated fairly by companies that want their business,” Goddard said. “I appreciate the cooperation in this case by the Associated Locksmiths of America. When businesses play by the rules, the market is more competitive and consumers win.”

If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763, in Tucson at 520.628.6504, or outside the Phoenix and Tucson metro areas at 1.800.352.8431.  Consumers can also file complaints online by visiting the Attorney General’s Web site at www.azag.gov.  To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help.

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