(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

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(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

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(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

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(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

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(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

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(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

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“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

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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

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(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

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(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

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(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

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(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.

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(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

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(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.

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(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

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(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

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(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.

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(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

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(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

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(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

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(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

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(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.

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(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

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(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

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(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

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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

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(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."

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(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

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(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

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(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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