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Tuesday, March 22, 2011

HORNE ANNOUNCES FAVORABLE RULING IN BANK OF AMERICA LITIGATION

PHOENIX (Tuesday March 22, 2011) -- Attorney General Tom Horne announced that the U.S. Federal District Court Judge Frederick J. Martone, ruled on the first significant motion in the Bank of America case. Judge Martone granted the State of Arizona’s motion to return the case to state court. In January, Bank of America had removed the case to federal court on a variety of grounds, all of which were rejected by Judge Martone.

Horne stated: “I am gratified that the court agreed with our argument that our claims that Bank of America violated state law should be heard in state court. State court often can proceed much more quickly than federal court. Homeowners who have suffered from practices that may violate the Arizona Consumer Fraud Act need timely relief, and unnecessary delays can be damaging to them."

The case will now be returned to Arizona Superior Court in Maricopa Country, where discovery will begin.

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Monday, March 21, 2011

ETHNIC STUDIES SUBJECT OF DISCUSSION AS AG TOM HORNE TO ADDRESS UNIVERSITY OF ARIZONA LATINO LAW STUDENTS

TUCSON (Monday, March 21, 2011) -- AG Tom Horne will address the University of Arizona Latino Law students to discuss HB 2281, Ethnic Studies Law, on Tuesday, March 22 at 5:45 p.m. at the University of Arizona College of Law, Ares Auditorium, Room 164. Horne will be on a panel.

Horne was invited by the Latino Law school group to discuss HB 2281, and welcomed the opportunity to discuss the issue with the law students and other panel members.

Horne stated: “TUSD’s Ethnic Studies program divides students by race and promotes ethnic chauvinism, rather than teaching students to treat each other as individuals. I am committed to educating the public on what is really happening in these classes.”

WHO: AG TOM HORNE TO ADDRESS UNIVERSITY OF ARIZONA LATINO LAW STUDENTS

WHERE: UNIVERSITY OF ARIZONA
JAMES E. ROGERS COLLEGE OF LAW
1201 EAST SPPEDWAY
TUCSON, AZ 85719

DATE: TUESDAY, MARCH 22, 2011

TIME: 5:45 P.M.

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Thursday, March 17, 2011

RAZA STUDIES SUPPORTERS, IN A THUGGISH MOB, TRIED TO SHOUT DOWN ATTORNEY GENERAL HORNE

PHOENIX (Thursday March 17, 2011) -- Attorney General Tom Horne today released a video of a screaming mob of Raza Studies supporters who interfered with the Attorney General’s efforts to accommodate a request to be interviewed by a television news crew.

In the video below, viewers can see a thuggish mob of Raza Studies supporters trying to shout down Horne, to attempt to prevent an interview with Univision Television.

Horne was in the process of leaving the Capitol after a meeting, when a reporter from Univision Televsion asked him to return to where his cameraman was, so he could do an interview in Spanish, as frequently does for Spanish-language media. A thuggish mob of Raza Studies reporters surrounded them and tried to prevent the interview, screaming at the top of their lungs. When the interview was over, Horne walked to his car, still surrounded by the mob, screaming vulgar epithets.

Horne said, “The Raza Studies program teaches irrational mob behavior as a matter of habit. For example, they did a street play called 'the killing of Tom Horne' which was filmed by channels 4 and 9 in Tucson, and broadcast.”

For a YouTube video (not produced by this office) of Attorney General’s Horne encounter this week go to: http://www.youtube.com/watch?v=nu3UW_Cw1-8.



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Wednesday, March 16, 2011

ATTORNEY GENERAL HORNE ADDRESSES FAIR HOUSING TRAINING EVENT

PHOENIX (March 16, 2011) - Attorney General Tom Horne will address the topic of housing discrimination at the "Cost of Un-Fair Housing" seminar on Tuesday, April 12 from 8 am to 12 pm.

The seminar, the Arizona Fair Housing Partnership's Annual event, held at the Disability Empowerment Center, 5025 E Washington, Phoenix will feature speakers such as HUD's Phoenix Field Office Director. There will be a panel discussion by experienced fair housing professionals from the Attorney General's office and the private sector about how to recognize housing discrimination what can be done about it. Groups who wish to learn more about fair housing or who have clients that might be affected by discriminatory practices are encouraged to attend.

“As Arizona’s chief law enforcement official, my office is empowered to enforce fair housing laws,” said Horne. “We recognize how deeply housing discrimination affects individuals and the community and work to eliminate it.”

To register, please visit regonline.com/fh2011 or call Shawna at 602-252-3423.

The Attorney General’s Civil Rights Division is always available to provide training to businesses and professional associations that are working to comply with the law. Information on events and training provided by the Division throughout the year can be found on the Attorney General’s Office website, www.azag.gov.

If you would like more information or feel you have been a victim of housing discrimination, please call the Attorney General’s Office at 602-542-5263 or email at civilrightsinfo@azag.gov.

For more information, contact Arizona Attorney General's Office Director of Community Education and Outreach Kathleen Winn 602-542-6903.

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Monday, March 14, 2011

HORNE ISSUES WARNING ABOUT RELIEF SCAMS FOLLOWING JAPANESE DISASTER

PHOENIX (Monday March 14, 2011) -- With disaster relief efforts underway to help the people of Japan, Attorney General Tom Horne says consumers should be cautious and only make contributions to reputable, established charitable organizations.

“While tragedies such as the disaster in Japan bring out the best in most people, they bring out the worst in others and the result is that scam artists will prey on consumers who want to help by making a financial contribution,” Horne said. “I’m urging Arizonans to give generously to relief efforts, but to make sure their contributions are used for their intended purpose.”

Here are some tips for giving to charitable organizations:
  • Be skeptical of anyone asking for a donation by requesting your credit card number or bank account information over the phone unless you already donate to that charity.
  • Be skeptical of individuals representing themselves as surviving victims or officials asking for donations.  
  • Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for the intended purpose.
  • Don’t be shy about asking what percentage of your donation will go directly to the charity versus administrative costs.
  • Call the Secretary of State's Office at (602) 542-4285 or visit their Web site to make sure the charity is registered with the Secretary of State.  A charity that operates without such registration is violating the law and should be seen as a red flag for consumers. Be aware, however, that registration with the Secretary of State does not guarantee that all of the charity’s activities are legitimate.  Several Web sites, including  www.charitynavigator.org, and, provide information on the financial backgrounds of charities. These can be useful for consumers looking to research organizations they are considering for a donation. 
  • Do not pay bills or invoices you have received from charities unless you know you have already made a commitment to support them.
  • Remember to ask for a receipt and a statement that the contribution is tax deductible.
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 on line by visiting the Attorney General’s Web site at www.azag.gov. More tips specific to the Japan disaster are also available at: http://ftc.gov/opa/2011/03/earthquake.shtm.

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Friday, March 11, 2011

ATTORNEY GENERAL TOM HORNE ANNOUNCES SETTLEMENT AGREEMENT WITH PRINCIPAL REDUCTION GROUP, LLC

PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne today announced a settlement agreement with Scottsdale based Principal Reduction Group, LLC, and Brian Cutright, owner and operations manager of Principal Reduction Group, LLC.

Pursuant to the settlement agreement, Principal Reduction Group and Brian Cutright agree to no longer engage in any activity, directly or on behalf of any third party, that involves originating, closing, or modifying any term of a consumer’s mortgage loan, or obtaining a reduction on a consumer’s debt, of any kind, while in the State of Arizona or on behalf of any Arizona consumer.

Horne stated. “Consumer fraud targeting homeowners who are facing difficulties paying their mortgages is a problem that must be dealt with and I am committed to finding and prosecuting those people who use predatory schemes.”

Additionally, the settlement agreement provides for full restitution to the consumers who filed complaints with this office; on average, those consumers paid $5,500 each for principal reduction services from the Defendants.

Finally, the settlement agreement requires the Defendants to pay $25,000 as civil penalties and $5,000 for attorneys costs and fees. The Attorney General shall deposit the funds into the consumer protection-consumer fraud revolving fund.

This settlement agreement is pursuant to a consent judgment currently awaiting court approval.

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. 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, www.azag.gov. Consumers can also file complaints online by visiting www.azag.gov/consumer/complaintform.html."

This case was handled be AAG Cherie Howe.

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HORNE ANNOUNCES MEDICAL DOCTOR SURRENDERS LICENSE, PAYS $700,000 RESTITUTION FOR PRESCRIPTION DRUG / MONEY LAUNDERING SCAM

PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne today announced that Albert Yeh, a medical doctor who practiced in Golden Valley, Arizona has surrendered his medical license in both Arizona and Nevada and will pay nearly $700,000 in restitution for his orchestration of a prescription drug and money laundering scheme.

Albert Yeh
“Albert Yeh can no longer practice medicine and victimize Arizonans,” Horne said.  “For three years, Yeh systematically victimized not only his patients, but the taxpayers of Arizona by writing massive amounts of prescriptions for narcotics without properly ensuring the patients actually needed those drugs; seeing far too many patients than is safe, and grossly and fraudulently inflating his bills for the admitted purpose of his making as much money as possible.  This medical predator is now, fortunately, out of business.”

On January 13, 2011, Albert Yeh pled guilty to three high level felonies: fraudulent schemes and artifices, a class 2 felony; illegal control of an enterprise, a class 3 felony; and money laundering, a class 3 felony. The plea requires Yeh, a medical doctor, to permanently surrender his Arizona medical license. Also, as a result of this prosecution, Yeh has permanently surrendered his Nevada medical license. Yeh does not hold any other medical licenses in the United States. On March 11, 2011, Yeh was sentenced by Maricopa County Superior Court Judge Susan Brnovich to 2.5 years in prison, followed by 5 years probation. Yeh is also required to pay $683,038.00 in restitution to the Arizona Health Care Cost Containment System (AHCCCS). In a related forfeiture matter, Yeh agreed to forfeit property seized in the amount of approximately $2 million in seized monies.

From January 1, 2006, to February 10, 2009, Yeh operated a pain management clinic one day a week in Golden Valley, Arizona, where he systematically victimized the State of Arizona through massive amounts of fraudulent billing. Yeh operated this medical practice for the admitted purpose of making as much money as possible. To do this, Yeh concocted a scheme to severely shorten patient visits, increase his patient load to dangerous levels, and then grossly inflate his bills. Yeh employed an unlicensed physician assistant who he instructed to see about half of the patient load, allowing Yeh’s practice to see twice as many patients. During most of those patient visits, prescriptions for narcotic drugs already signed by Yeh were provided to patients. Also, to shorten the length of patient visits, Yeh and his staff typically failed to take vital signs or perform medical exams, instead relying on computer commands created by Yeh that automatically entered false information on patients’ charts. This, of course, means that Yeh and his staff did not know whether patients were having adverse reactions to medications or experiencing other medical problems that should be factored into determining how to treat the patient. Then, Yeh submitted bills to AHCCCS, claiming that he had conducted all the patient visits, even those conducted by the unlicensed physician assistant. Also, Yeh inflated the charges on his bills by claiming he provided a higher level of medical service than what actually occurred, resulting in a higher than allowed payment from AHCCCS.

"DEA will stand firm on its commitment to investigate and prosecute any medical practitioner who violates the laws of the United States when prescribing controlled substances other than for legitimate medical needs," said Acting Special Agent in Charge Doug Coleman. "Today's sentencing sends a strong message that we will not tolerate rogue doctors who use their positions of trust to prey on those who are vulnerable to the abuse of prescription drugs."

Yeh’s records indicate that, with this scheme in place, his practice saw about 150 patients each day. To make sure these patients returned to Yeh’s practice so that he could continue to maximize his unlawful billing, Yeh did not take steps typically taken by pain management doctors to determine whether patients were taking too many drugs or drugs other than those he was prescribing. In fact, Yeh’s staff referred to follow-up visits as “refill” visits, as the focus clearly was on handing out the pre-signed prescriptions and moving on to the next patient.

This case was investigated by the U.S. Drug Enforcement Administration (DEA), the U.S. Department of Health and Human Services’ Office of Inspector General, the Arizona Attorney General’s Office, the DEA’s Tactical Diversion Task Force, which includes the Arizona Department of Public Safety, Phoenix Police Department, Apache Junction PD, Peoria PD, Surprise PD, Mesa PD, Kingman PD, Mohave Area General Narcotics Enforcement Team (MAGNET), Arizona Health Care Cost Containment System (AHCCCS) Fraud Unit, Nevada DPS, Arizona Pharmacy Board, the DEA Las Vegas and the DEA Digital Evidence Laboratory.

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ATTORNEY GENERAL TOM HORNE REMINDS CONSUMERS TO BE AWARE OF DECEPTIVE MAILERS

PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne is warning Arizona consumers to be wary of advertisements and solicitations appearing in mailboxes or at homeowners’ front doors. Many solicitations appear to be an official notification, although the sender has no affiliation with any government agency. These mailers offer to provide services that are required by a governmental entity or services that will save the consumer money. Most often, those offers simply are “too good to be true” and should be avoided.

In November 2010, the Arizona Attorney General’s Office obtained a $628,066 consumer fraud judgment against Vahe Zakaryan and his business, Board of Business Compliance. Operating from California, Mr. Zakaryan sent deceptive official-looking solicitations to Arizona business owners requesting an annual fee of $125. The mailing misled business owners into believing the fee and form were required by the Arizona Corporation Commission. In a similar case, the Attorney General has also brought suit against a Nevada corporation, Arizona Corporate Headquarters, and its principal, former NFL player Gaston Green, (now known as Gaston Muhammad), for mailing more than 137,000 fraudulent “corporate minutes” solicitations to Arizona businesses.

In August 2009, the Arizona Attorney General’s Office filed a lawsuit against Property Tax Review Board, a company that sent solicitations to homeowners requesting a fee of $189 to lower their property tax bill. Property Tax Review Board was unable to assist with property tax reductions as the business was not registered with the Board of Appraisals. Also, the time period to appeal property tax assessments for 2009 and 2010 had lapsed. The Attorney General’s Office obtained a judgment against Property Tax Review Board, enjoining them from conducting this type of fraud in the future and assessing a civil penalty against them in the amount of $7.1 million dollars. Property owners who want to appeal the valuation of their real property can do so, at no cost, by contacting their county assessors’ office.

These lawsuits are simple reminders to consumers to be wary of the advertisements and solicitations they receive in the mail or posted to their front doors. The Arizona Attorney General’s Office advises consumers to read all fine print, do research on companies that are listed on mailers and be cautious about the authenticity of mailings that appear to be from a government agency.

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 area at 1-800-352-8431. Consumers can also file complaints online by visiting the Attorney General’s Office 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. Locations and hours of operation are posted on the Attorney General’s Web site.

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Thursday, March 10, 2011

HORNE ANNOUNCES $2.1 MILLION PHARMACEUTICAL PAYOUT; LARGEST TO DATE

ARIZONA AND 37 ATTORNEYS GENERAL REACH A LANDMARK $68.5 MILLION SETTLEMENT WITH ASTRAZENECA PHARMACUETICALS
PHOENIX (Thursday, March 10, 2011) -- Attorney General Tom Horne today announced Arizona has received the largest-ever pharmaceutical payout in Arizona history - nearly $2.1 million - as part of the largest-ever multi-state consumer protection-based pharmaceutical settlement.

Horne stated: “This settlement sends a powerful message to drug companies that deceptive practices will not be tolerated. The health and safety of consumers is vitally important, especially where medications are necessary for the well-being of the patient.”

Arizona, along with 37 other Attorneys General, reached a record $68.5 million dollar settlement with AstraZeneca Pharmaceuticals LP arising from alleged deceptive marketing of the antipsychotic drug, Seroquel. The payment to Arizona is $2,093,327.

The complaint, filed today along with a Consent Judgment, alleges that AstraZeneca engaged in false and deceptive practices when it marketed Seroquel for unapproved or off-label uses; failed to adequately disclose the drug’s potential side effects to health care providers; and withheld negative information contained in scientific studies concerning the safety and effectiveness of Seroquel.

In addition to the $68.5 million payment, the terms of the Consent Judgment include injunctive provisions that the states identified in their investigation. The Consent Judgment requires that AstraZeneca not promote Seroquel in a false, misleading or deceptive manner, including for “off-label” uses (uses that are not approved by the U.S. Food and Drug Administration). The Consent Judgment also requires AstraZeneca to do the following:

  • Publicly post its payments to physicians on a website; 
  • Ensure that it does not give financial incentives to marketing and sales personnel for off-label marketing;
  • Ensure that its sales personnel do not promote Seroquel to health care providers who are unlikely to prescribe Seroquel for an FDA-approved use; and
  • Atypical anti-psychotics, including Seroquel, can produce dangerous side effects, including weight gain, hyperglycemia, diabetes, cardiovascular complications, an increased risk of mortality in elderly patients with dementia and other severe conditions.

Although a physician is allowed to prescribe drugs for off-label uses, the law prohibits pharmaceutical manufacturers from marketing their products for off-label uses. As alleged, AstraZeneca unlawfully marketed Seroquel for a number of off-label uses, including for use in pediatric and geriatric populations, specifically in nursing homes for Alzheimer’s Disease and Dementia. The States also alleged that AstraZeneca marketed Seroquel for anxiety, depression, sleep disorders, and post traumatic stress disorders even though the FDA had not approved Seroquel as a treatment for these conditions at the time AstraZeneca marketed Seroquel.

In addition to Arizona, the Attorneys General of the following states and the District of Columbia participated in the settlement: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wisconsin.

This matter was handled by AAG Noreen R. Matts.

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Wednesday, March 9, 2011

ATTORNEY GENERAL TOM HORNE ANNOUNCES COMPLAINT FOR INJUNCTION AGAINST SMOKE FREELY, LLC

PHOENIX (Wednesday March 9, 2011) -- Attorney General Tom Horne today filed a complaint in Pima County Superior Court for injunctive relief, restitution and civil penalties against Smoke Freely, LLC, an Arizona limited liability corporation. Smoke Freely offers Prado Electronic Cigarettes (“Prado E-Cig”) for sale. An Electronic Cigarette or “E-Cig” is a battery-powered device that can provide inhaled doses of nicotine by delivering a vaporized solution. Professional Marketing Associates, Inc. (“PMA”), a Massachusetts corporation, provides fulfillment services for Smoke Freely and responded to consumer complaints forwarded to Smoke Freely by our office.

While Smoke Freely states its merchandise is not a smoking cessation device, PMA represents that the Prado E-Cig “is an electronic cigarette used as a smoking cessation device.” The Prado E-Cig has not been approved by the FDA as a smoking cessation device.

Defendants also make misrepresentations about their “Risk Free Trial.” Defendants represent to consumers that consumers can pay shipping & handling and try a Prado E-Cig for free. Defendants also represent that consumers can return the Prado E-Cig within the trial period and not be charged anything more than the shipping & handling charge. In reality, some consumers do not receive the Prado E-Cig before the trial period expires, other consumers are charged additional fees before the trial period expires and still other consumers’ returns were considered “invalid” and those consumers were automatically enrolled to receive additional products and were charged for those products.

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. 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, www.azag.gov. Consumers can also file complaints online by visiting www.azag.gov/consumer/complaintform.html."

This case was handled by AAG Taren Ellis.

pdf SmokeFreely.pdf
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Tuesday, March 8, 2011

ATTORNEY GENERAL TOM HORNE ANNOUNCES SETTLEMENT AGREEMENT WITH QUIK CASH FINANCIAL SERVICES

PHOENIX (Tuesday March 8, 2011) -- Attorney General Tom Horne announced today a consent judgment against Quik Cash Financial Services to pay up to $170,000 in restitution to “eligible consumers” that were victims of consumer fraud. Quik Cash was a pay day lender which operated in most Arizona counties.

“Eligible Consumers” are those non-residents of Pima County who obtained pay day loans from Quik Cash outside of Pima County and against whom Defendants obtained a default judgment in the Pima County Justice Court and received funds from its collection efforts, including garnishments, which funds were applied to such default judgments.

The Attorney General filed a lawsuit against Quik Cash in December 2009, alleging that the company, in order to obtain as many defaults as possible against consumers who lived outside of Pima and Maricopa counties, filed for default judgments and, in many cases obtained garnishment orders, in Pima County against non-county residents. Quik Cash’s actions allegedly deprived consumers of their right to appear in court or to contest judgments and garnishments and in some cases, allowed Quik Cash to collect on debts consumers had already paid.

The consent judgment requires Quik Cash to comply with the Consumer Fraud Act. In addition, Quik Cash must do the following:

1. If Quik Cash has not already filed releases of the default judgments and garnishments it obtained against Eligible Consumers, Quik Cash shall file releases within ten days of the Effective Date (Tuesday, March 8, 2011).
2. Quik Cash will pay up to $170,000 in restitution to Eligible Consumers within thirty days of the Effective Date. Quik Cash must send a letter explaining that Quik Cash and the Attorney General’s Office have entered into a settlement and that Quik Cash has released the Eligible Consumer’s default judgment and garnishment.
3. Quik Cash will enclose a restitution check with the letter. The envelope containing both must contain the words “Quik Cash Refund” so that consumers do not throw the checks away.
4. Quik Cash must provide a report to the Office within thirty days of mailing the refund checks to include a sample refund letter; the names and addresses of the Eligible Consumers; and the amount of the restitution check Quik Cash sent to each consumer.
5. If restitution checks are returned to Quik Cash as undeliverable, Quik Cash shall use all reasonable efforts to locate the Eligible Consumers. If, after ninety days from receiving the returned checks, Quik Cash has not been able to locate the Eligible Consumers, Quik Cash shall pay the total amount of the undeliverable checks to our Office to be deposited into the Consumer Fraud Revolving Fund as fees and costs.
6. If Eligible Consumers do not cash restitution checks within 120 days of the date of the restitution checks, Quik Cash must pay the total amount of cancelled checks to the Attorney General’s Office to be deposited into the Consumer Fraud Revolving Fund as fees and costs.
7. Quik Cash is required to pay $67,500 to the Attorney General’s office for attorney’s fees and costs.

Horne concluded: “Payday lending is now illegal in Arizona. If consumers are aware of continued payday lending activity or believe they are a victim of consumer fraud, please contact the Arizona Attorney General’s office at (602) 542-5763.”

This case was handled by AAG Noreen Matts.

pdf QuikCash_3-8-11.pdf
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Monday, March 7, 2011

Tom Horne Announces Start of Consumer Protection Week

PHOENIX (Monday, March 7, 2011) - Attorney General Tom Horne announces the start of Arizona Consumer Protection Week, a week dedicated to helping Arizonans become informed consumers. Every day this week, AG Horne will highlight an issue to protect the consumer.

Horne is also announcing the Attorney General Taskforce Against Senior Abuse (TASA). TASA will provide statewide civil and criminal prosecution of elder abuse, neglect and exploitation and scams that target seniors. TASA has a dedicated phone line (602) 542-2124 or email SeniorAbuse@azag.gov.

To launch the week, the Public Advocacy Division of the Attorney General's office has provided a list of General Consumer Tips:
  1. Know who you’re dealing with.
    1. Research the company or individual before you do business with them. Too often, consumers research a company only after they’ve been scammed. The Better Business Bureau is a good place to seek information relating to a company and its reputation within the community.
    2. Consider recommendations from friends, but also beware of affinity marketing (when scammers target victims through a shared religious affiliation, nationality or language).
    3. Check to see if the company or individual is licensed with the appropriate agency.
      For example:
    1. Mortgage or real estate professionals - Arizona Dept of Financial Institutions, Arizona Department of Real Estate
    2. Home repair - Registrar of Contractors
    3. Charities - Registered with the Arizona Secretary of State’s Office.
  2. Read before you sign.
    1. Be aware of ‘Bait and switch’ tactics - don’t fall for “the contract says the same thing as what I just told you.” Always read the fine print terms and verbiage before signing any document.
    2. Don’t let anybody fill in terms for you, or pressure you to sign a contract immediately. If you have a question about terms or language used in a contract or agreement, do not hesitate to ask for a thorough explanation.

  3. Hang up the phone.
    1. Sign up for the Do Not Call List. You may list your home phone or cell phone on the Federal Trade Commission’s Do Not Call List. http://donotcall.gov or 1-888-382-1222.
    2. If you are receiving an unwanted or harassing phone call, it is OK to hang up.

  4. Be cautious about opportunities involving sending money as a means to receive money.
    1. Do not be persuaded to wire money to a company if they tell you that you have won a lottery prize. You probably have not won anything, especially if you did not enter a contest.
    2. Be aware of business opportunity scams that involve spending a large sum of money for simple business plans and ideas (Web sites, travel sales, etc.). Before you invest in any business, do your research and fully understand all terms and conditions for any agreement you may sign.

  5. Trust your instincts.
    1. If it sounds too good to be true, it probably is. And always remember, it never hurts to do a little research on a company or product before you spend time and money.
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. 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, azag.gov. Consumers can also file complaints online by visiting azag.gov/consumer/complaintform.html.
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Friday, March 4, 2011

Attorney General Tom Horne Announces TASA - Taskforce Against Senior Abuse

PHOENIX (Friday March 4, 2011) - Attorney General Tom Horne is pleased to announce the formation of the Attorney General Taskforce Against Senior Abuse (TASA) as an integral part of the Public Advocacy Division of the Attorney General’s Office. This is a reorganization and does not involve adding expense to the taxpayer.

Attorney General Tom Horne is committed to making elder abuse awareness, prevention and prosecution a priority. "Our seniors need to feel safe and secure in their homes. The Attorney General's Office is aware of the vulnerability of these citizens and is working to make sure older Arizonans are not victimized."

The Attorney General's Taskforce will work closely with other law enforcement offices, state and local agencies and senior-focused groups to assure an aggressive investigative and prosecutorial presence in the State. The Attorney General will convene an Advisory Panel to facilitate close cooperation with these offices and groups. These agencies and individuals are in the community on a daily basis and oftentimes are the first-responders in abusive situations. They are eyes and ears of the community. The Advisory Panel will bring together the ideas and resources of these community groups to combat elder abuse statewide.

TASA will provide statewide civil and criminal prosecution of elder abuse, neglect, exploitation and scams that target seniors. A key component of the Taskforce is the creation of an intra-office liaison with the Office's Criminal, Consumer Protection, Medicaid Fraud and Community Outreach Sections to prioritize elder abuse awareness, prevention and prosecution. Attorney General Horne's Office also initiated a dedicated telephone number through which the public, other city and county law enforcement agencies, caregivers or family members can report abusive predators who fail to carry out their responsibilities. "The vast majority of elder abuse cases are not reported to authorities. The dedicated number provides an avenue through which any suspected abuse or fraudulent activities can be reported and handled by the appropriate authorities" Horne noted.

The Taskforce Against Senior Abuse dedicated phone number is (602) 542-2124 or citizens may also email TASA at SeniorAbuse@azag.gov.

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Thursday, February 24, 2011

Attorney General Horne Announces Indictment of Scott Helmer on Charges of Fraudulent Schemes

PHOENIX (Wednesday, February 23, 2011) -- Attorney General Tom Horne announced today that Scott Arthur Helmer, 36, of Tempe, Arizona was indicted by an Arizona State Grand Jury of 20 charges related to his operation of his insurance business, Helmer Risk Management, LLC located in Scottsdale, Arizona.

Helmer is charged with eleven counts of Fraudulent Schemes and Artifices, class 2 felonies, five counts of Theft, class 2 felonies and four counts of Theft, class 3 felonies.

The indictment alleges between November 1, 2008 and December 31, 2009 that Helmer, in his capacity as a licensed insurance broker inArizona, diverted insurance premiums for commercial policies covering eleven businesses. The State alleges that Helmer used the premiums paid by the businesses to finance his insurance agency and personal lifestyle instead of forwarding the money to the appropriate insurance companies.

Scott Helmer and Helmer’s Risk Management, LLC’s insurance licenses were revoked by the Arizona Department of Insurance on November 18, 2009.

These charges are merely allegations, and Scott Helmer is presumed innocent until and unless proven guilty.

This case was investigated by the Arizona Department of Insurance Fraud Unit. Arraignment for Scott Helmer is scheduled for February 28, 2011 at 8:30 a.m. before Commissioner Rees of the Maricopa County Superior Court.

Scott Helmer

Indictment Below:

THOMAS C. HORNE
Attorney General
Firm Bar No. 14000

BEVERLY RUDNICK
State Bar No. 024531
Assistant Attorney General
1275 West Washington Street
Phoenix, Arizona 85007-2926
Telephone 602-542-3881
crmFraud@azag.gov

Attorneys for Plaintiff

IN THE SUPERIOR COURT OF THE STATE OF ARIZONA
IN AND FOR THE COUNTY OF MARICOPA
STATE OF ARIZONA,

                        Plaintiff,

v.

SCOTT ARTHUR HELMER, (001)

                        Defendant.

Case No:   

68 SGJ

INDICTMENT

CHARGING VIOLATIONS OF:

COUNTS 1-11: FRAUDULENT SCHEMES AND ARTIFICES, Class 2 Felonies, in violation of A.R.S. 13-2310;

COUNTS 12-16: THEFT, Class 2 Felonies, in violation of A.R.S. § 13-1802;

COUNTS 17-20: THEFT, Class 3 Felonies, in violation of A.R.S. § 13-1802.


The Arizona State Grand Jury accuses SCOTT ARTHUR HELMER, charging on this    
     day of February, 2011 that in or from Maricopa County, Arizona:

COUNT 1: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about June 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.
Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Algae Energae and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with XL Specialty Insurance Company.

COUNT 2: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about March 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Blackwell Enterprises and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with Arch Specialty Insurance.

COUNT 3: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about March 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from High Mountain Inspection and Standard Funding Corporation for premiums to purchase insurance policies and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of insurance policies with Arch Specialty Insurance, Lexington Insurance Company, Fireman’s Fund Insurance Group, Interstate Fire Insurance Company and Indian Harbor Insurance.

COUNT 4: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about November 1, 2008, and ending on or about July 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from J & L Pipeline and Standard Funding Corporation for premiums to purchase insurance policies and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of insurance policies with Arch Specialty Insurance, RSUI Indemnity and American International Specialty Insurance Company.

COUNT 5: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about March 1, 2009, and ending on or about August  31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Wesco Minerals and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with Fireman’s Fund Insurance Group.

COUNT 6: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about July 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Ferguson Service Systems and Standard Funding Corporation for premiums to purchase insurance policies and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of insurance policies with Fireman’s Fund Insurance Group, Century Surety Company and Commerce & Industry Insurance Company.

COUNT 7: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about July 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Citrus Energy, LLC and Standard Funding Corporation for premiums to purchase insurance policies and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of insurance policies with Indian Harbor Insurance Company, USF Insurance Company and Associated International Insurance.

COUNT 8: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about July 1, 2009, and ending on or about September 30, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Drexel Diesel Services and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with Arch Specialty Insurance.

COUNT 9: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about May 1, 2009, and ending on or about December 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Turner Point Energy and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with Maxum Indemnity Company.

COUNT 10: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about April 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Doug Terry Racing and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with Fireman’s Fund Insurance Group.

COUNT 11: FRAUDULENT SCHEMES AND ARTIFICES
During a period of time beginning on or about July 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER pursuant to a scheme or artifice to defraud, knowingly obtained a benefit by means of false or fraudulent pretenses, representations, promises or material omissions, in violation of A.R.S. §§13-2310, 13-2301, 13-603, 13-701, 13-702, 13-703, 13-801 and 13-804.

Said conduct occurred when SCOTT ARTHUR HELMER obtained proceeds from Arizona Clean Fuels and Standard Funding Corporation for premiums to purchase an insurance policy and SCOTT ARTHUR HELMER did not forward all of those proceeds towards the purchase of an insurance policy with Essex Insurance Company.

COUNT 12: THEFT
During a period of time beginning on or about June 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Algae Energae and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 13: THEFT
During a period of time beginning on or about March 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Blackwell Enterprises and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 14: THEFT
During a period of time beginning on or about March 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by High Mountain Inspection and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 15: THEFT
During a period of time beginning on or about November 1, 2008, and ending on or about July 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by J & L E Pipeline and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 16: THEFT
During a period of time beginning on or about March 1, 2009, and ending on or about August  31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Wesco Minerals and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 17: THEFT
During a period of time beginning on or about July 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $4,000 but less than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Ferguson Service Systems and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 18: THEFT
During a period of time beginning on or about July 1, 2009, and ending on or about October 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $4,000 but less than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Citrus Energy, LLC and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 19: THEFT
During a period of time beginning on or about July 1, 2009, and ending on or about September 30, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $4,000 but less than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Drexel Diesel Services and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

COUNT 20: THEFT
During a period of time beginning on or about May 1, 2009, and ending on or about December 31, 2009, Defendant SCOTT ARTHUR HELMER without lawful authority, knowingly converted for an unauthorized term or use services or property of another, in an amount more than $4,000 but less than $25,000,  entrusted to him or placed in his possession for a limited, authorized term or use in violation of A.R.S. §§13-1802(A)(2), 13-1801, 13-1802(G), 13-1802(H), 13-603, 13-701, 13-702, 13-801, and 13-804.

            Said conduct occurred when SCOTT ARTHUR HELMER used monies entrusted to him, as a licensed insurance agent, by Turner Point Energy and Standard Funding Corporation to be used for the purchase of an insurance policy. SCOTT ARTHUR HELMER used these funds for his own unauthorized purposes.

Pursuant to A.R.S. § 21-425, the State Grand Jurors find that the offenses described above were committed in Maricopa County, Arizona.

                                                                    
(A "True Bill")

THOMAS C. HORNE
ATTORNEY GENERAL
STATE OF ARIZONA  
Dated:                                                                   



                                                                                                                                                                    
BEVERLY RUDNICK                                                   Foreperson of the State Grand Jury
Assistant Attorney General

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Tuesday, February 22, 2011

ATTORNEY GENERAL HORNE CO-SPONSORING FAIR HOUSING WEBINAR FRIDAY

PHOENIX (Tuesday, February 22, 2011) - Attorney General Tom Horne is inviting the public to participate in a fair housing webinar on Friday, February 25th from 9:30 am to noon.

The webinar will feature a panel of experts from the Arizona Attorney General’s Office, Community Legal Services, the Southwest Fair Housing Council, and Don’t Borrow Trouble Arizona. Discussion topics will include discrimination, reasonable accommodations, complaints, equal opportunities, protected classes, assistive animals, children and fair lending.

“As Arizona’s Attorney General, it is my responsibility to enforce Arizona’s Fair Housing Act as well as to educate our community about the importance of fair housing and the requirements of our civil rights laws,” said Horne. “Some housing violations take place because people are unaware of fair housing laws. Others are deliberate acts of discrimination. I encourage all Arizonans to learn more about their fair housing rights and responsibilities.”

Register online now at www.dbtaz.org or call 1-888-624-4611.

The Attorney General’s Civil Rights Division is always available to provide training to businesses and professional associations that are working to comply with the law. Information on events and training provided by the Division throughout the year can be found on the Attorney General’s Office website, www.azag.gov.

If you would like more information or feel you have been a victim of housing discrimination, please call the Attorney General’s Office at 602-542-5263 or email at civilrightsinfo@azag.gov.

For more information, contact Arizona Attorney General's Office Director of Community Education and Outreach Kathleen Winn 602-542-6903.

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Wednesday, February 16, 2011

HORNE SAYS MEXICO RISKS BECOMING A FAILED STATE UNLESS MEXICO AND THE U.S. COOPERATE TO COMBAT DRUG VIOLENCE AND ECONOMIC UPHEAVAL

PHOENIX (Wednesday, February 16, 2011) -- Attorney General Tom Horne, speaking at the Border Security Expo and Conference in Phoenix, said today that the United States and Mexico need to work in cooperation to combat the organized criminal enterprises that control drug traffic into the U.S. These criminal enterprises could threaten the Mexican government, and it is very much in the interests of the U.S. and Arizona to help Mexico.

“The criminal enterprises are engaging in diversified organized criminal activity ranging from hijacking cargo shipments to murder,” Horne noted. “This is in addition to promulgating an unprecedented wave of violence targeting judges, mayors, law enforcement officials, journalists and innocent civilians. These criminal enterprises do this because it is in their nature, and they will continue to escalate their parasitic criminal conduct without regard for the economic, moral or societal consequences because their ultimate aim is power, money and control of the border.”

Horne made a number of specific proposals.

“I am calling on the governments of both the U.S. and Mexico to immediately begin work to cut off funding for border criminal enterprises; begin joint U.S. and Mexico prosecution of cross-border criminal activity in commercial endeavors; enlist international businesses in eliminating money laundering; increase multi-agent and bi-national crime fighting task forces including those that target the flow of illegal weapons into Mexico; help Mexico reform its justice and law enforcement system, including new laws adopting U.S. methods for asset forfeiture, anti-racketeering laws, as well as terrorism, and joint anti-corruption efforts.”

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AG Horne Speech Below –

CRIMINAL ENTERPRISES HEADQUARTERED IN MEXICO ARE A SUBSTANTIAL AND URGENT THREAT TO MEXICAN AND U.S. ECONOMIC STABILITY

I come here to propose a new three-cornered partnership: 1) among all U.S. Law enforcement—federal, state, and local; 2) among all U.S. law enforcement and Mexican law enforcement; and 3) between U.S. and Mexican law enforcement and affected industries, particularly transnational businesses that are victims of or are being misused by criminal enterprises.

The criminal enterprises operating in and from Mexico present an immediate and escalating threat to the economic well-being of the region and therefore to North America.

Smuggling activity is present on virtually every international border. The necessary existence of import restrictions creates profit-making opportunities for smugglers.

The U.S./ Mexico border separates the largest economy in the world and the U.S.’s second largest trading partner. Accordingly, smuggling across this border is a profitable activity. Generations of generally familial smuggling organizations exist on both sides of the border. These organizations have deep roots in the fabric of the cities and towns along all of the trade routes between the U.S. and Mexico.

Mexican criminal enterprises now present a new and different threat to North American well-being. They are fiercely competitive multi-crime criminal enterprises. This discussion uses the term “criminal enterprises” because this term is used in federal and state racketeering statutes.

There are many sources of the increased power of criminal enterprises.

1. Immigration into the U.S. brought Mexican criminals to U.S. cities in large numbers in the 1990s. Substantial Mexican criminal populations allow drug organizations to rely on extended ties to integrate their distribution networks.
2. The Mexican Criminal Enterprises have incorporated influences from the “Zetas,” former members of an elite military unit originally recruited by a drug organization as mercenaries in inter-enterprise warfare. The Zetas brought with them greater eagerness to diversify into criminal opportunities other than drug smuggling.
3. Other opportunities for bringing young men to northern Mexico included preparation for people to illegally cross the border. Maquiladoras plants brought many unemployed young men to northern Mexico. Underemployed, disaffected young men, feeling the self-perceived invincibility of youth and eager to prove themselves are ready for recruitment into criminal organizations and related street gangs. When conflicts mean that a kingpin’s relatives may die or be injured, naked aggression is not as attractive as when the casualties will be replaceable strangers. Aggression and brutality became more acceptable.
4. The threat posed by the Mexican Criminal Enterprises continues to escalate because of persistent popular ignorance and misinformation on both sides of the border.

It does not appear to be widely understood that continued consumption of Mexico-sourced drugs is the direct root cause of the erosion of the free democracy in Mexico and ultimately of the economy of North America. Young people forego tuna that has not been harvested with adequate care for dolphins. They are acutely aware of the indirect consequences of their consumer decisions. Yet they continue to buy Mexico-sourced drugs as if there were no consequences for these decisions.

The Criminal Enterprises are engaging in diversified organized criminal activity, such as diverting petroleum products, hijacking truck and train cargo, extorting major businesses, and targeted intelligence-driven kidnappings of business leaders. They are uniquely situated for attacks on trade because they grew out of smuggling organizations, so they have deep roots on the key trade routes between the U.S. and Mexico. Apart from the direct injury to the immediate victims, these criminal activities are strategically significant in two ways. First, they are sources of income and therefore sources of power to the Criminal Enterprises. Second, they infiltrate, burden and ultimately destroy trade-related activity and investment.

The Criminal Enterprises may not intend to strangle commerce. Indeed, they may have no thought that this could happen and no desire for this result. But a pack of wolves may decimate a deer population without a thought about what that may mean to future wolves years hence. They act like wolves because that is their nature. Criminal Enterprises act as they do because that is their nature. They will continue to escalate their parasitic criminal conduct without regard to whether their crimes will ultimately kill the host. They will continue unless they are stopped. So the diversification of criminal conduct will continue as long as the economic opportunities are there and will take whatever advantage of those opportunities that they can get away with.

Some observers of the present violence have written that President Calderon’s decision to call in the military was the initial cause of the present violence. However, the rise of the newly aggressive and power-acquiring Criminal Enterprises was not caused by Calderon’s administration.

The Zetas arrived on the scene in the late 1990s, bringing their military tactics and new ruthlessness and opportunism.

The Criminal Enterprises’ tactics are clearly intended to undermine representative government by instilling lack of confidence and fear in the Mexican people. These outrages to civil life include murders, extortion of city residents, car bombings, and beheadings.

In any event, in the present circumstances, it is not really possible for the Mexican government to back down. While it has long been believed by some in the U.S. that Mexican government officials accepted bribes to allow Mexican drug and human smugglers to operate with relative amnesty, that was in the context of the crimes of drug and human smuggling. From the Mexican perspective, these are quasi-victimless crimes. The crimes have changed. They now include diversion of petroleum, hijacking cargo, kidnapping business people, extorting insurance companies, extorting whole cities, and atrocious murders, including of clergy, journalists, and political leaders. No government can look the other way in connection with such conduct, no matter what bribe amount is offered, so there is no “back down” solution.

Nor would the Criminal Enterprises accept a return to the former order, even if could be offered. Once the Criminal Enterprise has enjoyed the criminal benefits of operating with impunity in a governmentally challenged area and parceled out those income streams to the inner circle, its nature does not permit unforced retreat. A leader who proposed to his inner circle that the group henceforth limit itself to drug and human smuggling and abandon the other criminal opportunities would not remain the leader for long.

Some have proposed legalizing drugs as a panacea by which the violence could be stopped and the strength of Mexico’s representative government restored, deflecting the threat to the economy. This is not possible. Consider the economics of, say, a hypothetical “National Cocaine Corp.”, a new business formed to sell hypothetically recently legalized cocaine in the U.S. As the first order of business, it must undertake the expense of getting an FDA approval. The Mexican Criminal Enterprises won’t have any of these expenses. In addition, some young people will inevitably be deemed too young to use the drugs legally. This market would not be available to a legal company, but the Criminal Enterprises would keep selling to this market. There is no legal product that can match the price of good old smuggled drugs. So the Mexican Criminal Enterprises would stay in business and would continue smuggling the same products, but for a larger market because the products are approved by the government as “legal.”

Sealing the border cannot fully resolve the threat to trade. This would not stop the Criminal Enterprises in Mexico from operating. They would continue to develop diversified criminal activities, in addition to selling drugs in Mexico. They would complete the escalation of their dominance over the representative government, strangling U.S./Mexico trade from the south side of the perfect wall. They would still cause economic collapse. The collapsed Mexican representative government would then have little control of the growth of the Criminal Enterprises. The Criminal Enterprises would turn their attention to penetrating the U.S. with diversified criminal activities, using the collapsed northern Mexican areas as staging grounds.

The sober truth is that the U.S. faces a substantial and immediate risk that the Mexican criminal enterprises will drive the U.S.’s neighbor and second largest trading partner into economic ruin in the next few years. There is no easy “back down” solution, no “legalize drugs” solution. Mexican Criminal Enterprises pose a serious threat to U.S./Mexico trade, which in turn poses a serious threat to the economic health of Mexico and therefore of North America.

Success depends in part on Mexican action because if the Mexican government loses the battle for control of the trade routes, the U.S. and Mexican economies will be damaged.

We—the U.S. and Mexico acting together—must act decisively now. It will require a close partnership with, and often following the leadership of, the Mexican government. The alternative is the catastrophic consequences of a destabilized Mexico.

In the short term, focusing on preserving U.S./Mexico commerce points to several parallel goals:

1. focusing U.S. and Mexican investigation and prosecution on the Criminal Enterprises’ incursions into commercial activities, with the investigations centered in Mexico and the prosecutions in the U.S.;
2. cutting off Criminal Enterprises from sources of income and materiel that the U.S. has direct influence over, specifically money laundering, including the payments for illegal drugs and aliens, and the weapons flowing south from the U.S.; and
3. recasting and vastly expanding efforts to prevent and treat U.S. use of Mexico-sourced drugs.

The first of these focal points will require significant new approaches and resources:

1. U.S. government outreach to all U.S./Mexico international businesses. Enlist as allies those that are in some way facilitating the Criminal Enterprises, wittingly or unwittingly. As examples, money transmitters and stored value program operators are used by Criminal Enterprises to transfer value from the U.S. to Mexico without the risk and expense of smuggling bulk cash. Hundreds of millions of illicit dollars pass through these systems annually. Review anti-money laundering programs and industry contribution of data relating to these transactions and gather industry insights into how the illicit money flows and how industry members could prevent or report it.
2. Recruit and train federal and state investigators and prosecutors in the U.S. and Mexico to address specific criminal industries and enlist victim businesses, to include petroleum theft, cargo hijacking, import-export fraud, kidnapping/extortion, and intellectual property theft aimed at international businesses. Expand existing federal and state civil racketeering efforts to support bringing trade-based civil racketeering cases in U.S. courts.
3. Collect these investigators and prosecutors in multi-agency collocated task forces modeled on the High Intensity Drug Trafficking Area or Border Enforcement Security Taskforce task forces.
4. Expand U.S. judicial and related support resources in the economic centers with most direct trade and business headquarter connections with Mexico, such as San Diego, Los Angeles, Phoenix, San Antonio, Houston, New Orleans, Miami, and New York.

The second of the focal points, money laundering, including bulk cash flow into Mexico, is being addressed by substantial U.S. resources. The strategic analysis here, as elsewhere, starts by identifying the components that permit the Criminal Enterprises to continue and prosper and thereby threaten U.S./Mexico trade. It proceeds to identify those components that are most essential to the Criminal Enterprises’ endangerment of the U.S./Mexico economy, and then those components among them that are most vulnerable to government attack.

Regarding the flow of weapons, cross-border multi-jurisdictional task forces similar to those described above must focus on the reduction of the flow of weapons into Mexico. These prosecutions would include racketeering actions against U.S. gun sellers who are aware that their sales are facilitating Mexican Criminal Enterprises.

Preventing and treating use of Mexico-sourced drugs will require, above all else, broad recognition of the consequences of funding the Mexican Criminal Enterprises. A massive public education effort would get the truth to potential consumers, who, once aware of the consequences, will do the right thing. U.S. consumers have dramatically changed attitudes toward drunken driving and smoking once made aware of the consequences. They will also do so with regard to the threat to the economic survival of Mexico, the extreme violence, and the erosion of the quality of life in Mexico that are the consequences of Mexico-sourced drug use in the U.S.

Focusing on preserving US / Mexico commerce points to other long term goals, including:

1. expand support of Mexico’s ongoing reforms of its judicial system to make it more transparent, more resistant to corruption, and therefore more credible in its results;
2. support of freedom of the Mexican press by assisting with investigations of intimidation and assassination of journalists and other media representatives;
3. form joint anti-corruption initiatives partnering with U.S./Mexico international businesses to address corruption that affects U.S./Mexico trade;
4. support of ongoing Mexican reforms of the federal and state police by offering training and technical support of Mexican law enforcement agencies and the Mexican military;
5. promote more effective Mexican statutes adapting concepts from U.S. forfeiture, racketeering, and terrorism statutes to the Mexican legal framework;
6. reduce the availability of young gunmen in northern Mexico by restructuring manufacturing opportunities as, perhaps, by encouraging plants to move from population centers, improving working conditions, and matching job supply and local demand for jobs more effectively to minimize excess labor supply.

A recent article in Foreign Affairs magazine pointed out that although Mexico has serious problems, Colombia had problems that were even more severe and yet Colombia prevailed. Hopefully, with US help, Mexico can also succeed.

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Monday, February 14, 2011

ARIZONA ATTORNEY GENERAL HORNE JOINED BY THE GILA RIVER INDIAN COMMUNITY SUE TO STOP GLENDALE CASINO AND TO PROTECT THE GAMING COMPACTS

PHOENIX (Monday, February 14, 2011) -- Arizona Attorney General Tom Horne and the Gila River Indian Community today announced the filing of a joint lawsuit to stop a Glendale Casino from opening in a Glendale neighborhood near a local high school. Working together to protect Arizona - Tribal Gaming Compacts, the State of Arizona and the Gila River Indian Community have taken this action to stop Tohono O’odham from opening a casino that would violate the Proposition 202 Compacts approved by the citizens of Arizona and seventeen other Arizona tribes.

The lawsuit filed today in the U.S. District Court for Arizona requests an injunction to prevent the Tohono O’odham from opening a casino in Glendale. Tohono O’odham leaders have repeatedly said they fully intend to immediately open a casino in Glendale if the land is placed into trust by the United States - without ever obtaining approval from Secretary of Interior Salazar or the State of Arizona.

AG Tom Horne provided this legal background: "Initially, the Gila River Indian Community sued the United States. In a separate lawsuit the City of Glendale also sued the United States. The Tohono O'odham Nation intervened in both lawsuits. The purpose of both lawsuits is to have the decision concerning the land in question (Glendale land) remanded to the Department of the Interior for proceedings that were omitted but necessary. This office intervened on behalf of the State of Arizona supporting the Gila River Indian Community. In this new action, both the Gila River Indian Community and the State of Arizona seek a judgement for breach of contract because of the initial agreement that tribal gaming would not occur within cities and neighborhoods."

Arizona Citizens voted to approve Proposition 202 in 2002 to allow Indian Casinos to operate on existing reservation lands and to keep casinos out of cities and neighborhoods. Now the Tohono O’odham Nation claims that a legal loop hole allows it to open a casino in Glendale in violation of its Compact and the promise made to the citizens of Arizona by the 17 tribe coalition that supported Proposition 202. GRIC Governor William Rhodes said, “Arizona tribes and Arizona voters made a promise to keep casinos out of neighborhoods and to make gaming work for the economic benefit of every tribe and our state. We can’t let one tribe break that promise at the expense of all other Arizona tribes and 6 million people of the state of Arizona.”

Even though the Department of Interior has never determined that gaming on the Glendale land would be legal, the Tohono O’odham Nation has made clear in its court filings that it has no intention of ever seeking an eligibility ruling. Their plan is to just open the casino and then see if anyone can shut the casino down. The Secretary of Interior apparently agrees with this approach which could trigger a crisis in Indian gaming in Arizona.

By contrast, Attorney General Horne and the Gila River Indian Community believe that any gaming conducted without a formal eligibility ruling violates the Compacts, which only allow casinos on IGRA approved lands. Except for very limited exceptions which do not apply here, IGRA does not allow a Casino on Indian land acquired after 1988.

“What Tohono O’odham has proposed not only violates federal and state law, it breaks the promise of Indian gaming relied on for years by tribes and Arizonans alike,” Rhodes said. “So far, the federal government has not been willing to uphold the law. The BIA has decided to avoid making a decision and to leave this to the courts to figure out. So, together with Attorney General Horne, we intend to make sure that happens.”

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Thursday, February 10, 2011

HORNE JOINS GOVERNOR BREWER IN LAWSUIT AGAINST OBAMA ADMINISTRATION FOR FAILURE TO PROTECT ARIZONA’S BORDER WITH MEXICO

(PHOENIX) – Thursday, February 10, 2011 -Attorney General Tom Horne has joined Governor Jan Brewer in filing a counterclaim against the federal government – which is suing Arizona over S.B. 1070 – for not fulfilling its Constitutional mission to protect the international border.  A summary of the filing and the complete lawsuit are attached.

pdf Summary of Counterclaim - 2-10-11.pdf

pdf answer and counterclaim.pdf

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Attorney General Tom Horne Confirms the Arrest of Melissa Gizelle Pacheco on Charges of Vulnerable Adult Abuse

PHOENIX (Thursday, February 10, 2011) -- Attorney General Tom Horne today confirms the arrest of Melissa Gizelle Pacheco of Phoenix, Arizona, on multiple charges of vulnerable adult abuse. Pacheco, a registered nurse, is being arrested for her alleged conduct as owner of the Fiesta Village Assisted Living Facility, where she allegedly failed to properly staff, maintain and clean the home where at least 65 adults with both physical and mental limitations were living under her care.

The facility was shut down and the residents removed to other facilities by the Phoenix Police Department.

Melissa Pacheco was arrested at 10:00 a.m. today by the Phoenix Police Department and investigators from the Medicaid Fraud Control Unit of the Attorney General’s Office.

“The allegations here are extremely disturbing.  I applaud the efforts of the Phoenix Police Department to aggressively investigate these charges.  I have asked my Medicaid Fraud investigators and prosecutors to assist in any way possible to be certain anyone found responsible for causing these deplorable conditions is held responsible,” Horne said.

The charges are merely accusations and the suspect is presumed innocent of all charges until or unless she is proven guilty.

The charges will be reviewed by the Attorney General's Phoenix Office.  For more information, contact Arizona Attorney General's Office Press Secretary Amy Rezzonico at 602-542-8019.

Pacheco

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Wednesday, February 9, 2011

DEPUTY COCHISE COUNTY SHERIFF DEPUTY AND WIFE CHARGED WITH EMBEZZLING NEARLY $1 MILLION DOLLARS FROM SIERRA VISTA DOCTOR

PHOENIX (Wednesday, February 9, 2011) - Attorney General Tom Horne today announced the charging of Angelina Lopez and her husband, Cochise County Sheriff’s Deputy Victor Lopez, of Sierra Vista, Arizona. Lopez and her husband have been charged with embezzling nearly $1,000,000 from her former employer, a medical doctor in Sierra Vista, Arizona.

The charges, filed in Cochise County are a result of an investigation conducted by the Arizona Department of Public Safety and the Sierra Vista Police Department. Angelina Lopez was charged with one count of fraudulent schemes and artifices and three counts of theft. Her husband, Victor Lopez, was charged with conspiracy, fraudulent schemes and artifices and three counts of theft.

The charges are merely accusations and the suspects are presumed innocent of all charges until or unless they are proven guilty.

This case was referred to and is being prosecuted by the Arizona Attorney General’s Office Criminal Division. Copies of the indictment are attached. For more information, contact Arizona Attorney General's Office Press Secretary Amy Rezzonico at 602-542-8019.

pdf ANGELINA_LOPEZ_INDICTMENT.pdf
pdf VICTOR_LOPEZ_INDICTMENT.pdf

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Tuesday, February 8, 2011

HORNE ANNOUNCES CLEAN ELECTIONS CANDIDATE ROBERT MARK GREEN ENTERED GUILTY PLEA: GREEN FALSIFIED HIS APPLICATION TO RECEIVE FUNDS TO RUN FOR DISTRICT 7

PHOENIX (Tuesday, February 08, 2011)  --  Attorney General Tom Horne announced today that Robert Mark Green, 48 of Phoenix, entered a guilty plea today to resolve his pending felony charges in Maricopa County Superior Court.  Green pleaded guilty to forgery, a felony, admitting that he falsified a "Participating Candidate's Application to Receive Funds and Qualifying Contribution Report" filed with the Arizona Citizens Clean Election Commission on March 8, 2010, as part of Green's campaign for the Republican nomination for State Senate in Legislative District 7.

“Misuse of the State’s public funds and fraud will not be tolerated.  I thank the Clean Elections Commission and the Secretary of State’s office for their cooperation in this matter,” Horne said.

Green has agreed to pay a $9,479 fine, repay $11,060.63 in investigation costs, and has agreed to not seek funds from the Citizen's Clean Election Commission while he is on probation.  Green could serve up to four years on probation, and could be ordered to serve up to a year in the Maricopa County Jail.  Green will be sentenced on March 8, at 8:30 a.m. before Judge John Hannah.

“The message here is that people who cheat our election system and get caught, will pay a serious penalty,” said Todd Lang, Executive Director of the Clean Elections Commission.

pdf Click here for a copy of the Plea Agreement.

Booking Photo Green 2-8-11

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Friday, February 4, 2011

Horne: Lethal Injection Lawsuit Is Frivolous

Phoenix (Friday, February 4, 2011) - Attorney General Tom Horne responded today to a lawsuit filed in the United States District Court for the District of Columbia by several Arizona inmates against the Federal Drug Administration (FDA) in which the inmates have asked the court to order the FDA to deny importation of drugs used for executions and to recall drugs already acquired from other countries. Arizona carried out the execution of inmate Jeffrey Landrigan in October using drugs obtained from England and intends to use drugs from the same supplier in upcoming executions. The FDA has indicated that regulating drugs used in executions is not within the scope of their authority.

Horne stated: “This lawsuit, filed by the Federal Public Defenders Office, is a frivolous use of tax dollars. Lethal injection is considered the most humane method of carrying out an execution, and the protocol that the Arizona Department of Corrections (ADC) follows has been upheld by the courts as providing more than adequate protections to ensure that the execution will be carried out properly and without unnecessary suffering.’

‘Because United States suppliers no longer manufacture the first drug used in the execution protocol, ADC was forced to look elsewhere for the drug and purchased it from a supplier in England. There is no evidence that drugs manufactured in England are inferior or are somehow unsafe, and the execution of inmate Landrigan was carried out without incident. It is absurd to suggest that the FDA should be ordered to recall drugs obtained from England or to deny further importation of drugs for use in carrying out executions.”

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Tuesday, February 1, 2011

ATTORNEY GENERAL TOM HORNE SAYS NEW YORK CITY INVESTIGATORS OVERSTEPPED BOUNDARIES IN GUN SHOW PROBE; BLOOMBERG FAILED TO COORDINATE WITH LAW ENFORCEMENT

PHOENIX (Tuesday, February 1, 2011) -- Arizona Attorney General Tom Horne says New York City Mayor Michael Bloomberg overstepped his authority by sending New York undercover officers to Arizona in an attempted “sting” operation at a Phoenix gun show.

“Local law enforcement and the Arizona Department of Public Safety were never notified that Mayor Bloomberg’s operation was being undertaken. That is standard professional courtesy and is also designed to protect the general public,” Horne said. “Arizona law enforcement should have been made aware that people posing as criminal elements were in fact undercover officers. The fact that no such notification was made indicates this so-called sting is nothing less than a public relations stunt.”

Horne added, “I would suggest that Mayor Bloomberg consider the skyrocketing crime rate in New York City before he asks any more of his city’s police to leave town on these p.r. missions. According to the most recent FBI statistics, violent crime in New York City increased significantly in 2010 compared to data from 2009. Robbery went up 3.9 percent, forcible rape rose 13.9 percent, aggravated assault increased 8.8 percent and murder rose 12.3 percent. Clearly, the good men and women of the New York City Police Department have more pressing crimes to investigate than alleged violations at a gun show 2,400 miles away.”

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HORNE ANNOUNCES ARIZONA NOW TO OPPOSE FEDERAL E.P.A. GREENHOUSE REGULATIONS

PHOENIX (Tuesday, February 1, 2011) -- Attorney General Tom Horne announced today that Arizona has withdrawn from a United States District Court lawsuit in which Arizona had previously supported the U.S. Environmental Protection Agency’s (EPA) greenhouse gas regulatory scheme.

Because of this action, Arizona will no longer support the proposed EPA Reporting Rule requiring mandatory reporting of greenhouse gas emissions above appropriate thresholds in all sectors of the U.S. economy. The state will also no longer support the Endangerment Finding and so-called California Waiver portions of the regulations.

“I am passionate about protecting the rights of individual states under the 10th Amendment. And I am equally passionate about limiting government intrusion into the ability of employers to reasonably operate their businesses,” Horne said. “This regulatory scheme is a classic example of a federal agency trying to do the job of elected legislators and at the same time place burdensome mandates on business.”

“The federal government cannot continue to increase its size and scope at the expense of the constitutional protections envisioned by the Founders. This proposed EPA action would exacerbate that problem and have therefore withdrawn the support this action was given by my predecessor,” Horne concluded.

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ATTORNEY GENERAL HORNE POSTS LEGAL BRIEF ON HEALTH CARE LAWSUIT

Click here to view a copy of the health care ruling.  (http://myfloridalegal.com/webfiles.nsf/WF/JDAS-8DMNTD/$file/VinsonRuling1312011.pdf)

Monday, January 31, 2011

ATTORNEY GENERAL TOM HORNE ATTACKS THE NATIONAL LABOR RELATIONS BOARD (NLRB) FOR UNDERMINING THE MOST FUNDAMENTAL PRINCIPAL OF REPUBLICAN REPRESENTATIVE GOVERNMENT; SECRET ELECTIONS

PHOENIX (Monday, January 31, 2011) -- Attorney General Tom Horne says Arizona will not give in to an ultimatum from the National Labor Relations Board that threatens the voter-approved protection of the secret ballot in union elections.

Horne is releasing a response to an NRLB letter that demands that Arizona and three other states stipulate that the so-called “Card Check” referendum, approved by voters in 2010, is unconstitutional.

“Once again, Arizona is being threatened by its own federal government with a lawsuit, Horne stated. “This intimidation by our own elected leaders must stop. The NLRB is making a direct attack on the most fundamental values of representative government; that is to protect the right of every individual to the privacy of a secret ballot. For this federal agency to attack the right of the secret ballot is more than ironic, it’s Orwellian.”

Regarding the importance of secret elections, Horne quoted Sir Winston Churchill, “We must never cease to proclaim in fearless tones the great principles of freedom and the rights of man which are the joint inheritance of the English-speaking world…

All this means that the people of any country have the right, and should have the power by constitutional action, by free unfettered elections, with secret ballot to choose or change the character or form of government under which they dwell…”

As noted in the responsive letter, the NLRB itself has recognized in specific decisions that a “secret ballot is requisite for a free election”

A copy of the original NLRB letter and response by the four states is included.

pdf NLRB.pdf

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Wednesday, January 26, 2011

HORNE TO RECOMMEND TAXATION OF MEDICAL MARIJUANA

Phoenix (Wednesday January 26, 2011) - Attorney General Tom Horne today announced that he is recommending to the Arizona Department of Revenue that medical marijuana, made legal in a recent initiative, be taxed by the State. 

Horne stated, "I was opposed to the medical marijuana initiative during the 2010 election, but it was passed by the voters and the issue now presented is whether it should be taxed under existing law."

He added, "Normally, there would be no tax on prescriptions.  However, the legislation refers to doctors giving a 'written certification' rather than a prescription, an apparent effort, copied from other states, to protect doctors from discipline for giving prescriptions of substances prohibited under federal law.  Since these are 'written certifications' rather than prescriptions, the sale of the substance can be taxed by the State, and we are recommending to the Department of Revenue that it tax the sales accordingly.  We are informed by the Department of Revenue that they will take this advice, and tax the sales."

The taxes are estimated to yield revenues to the State of Arizona in the approximate amount of $40 million per year.  This number is projected, on a pro rata basis, to the Arizona population the statistics for Denver County, as reported by the Denver Post using the Phoenix sales tax rate.

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Thursday, January 20, 2011

NEW ERA AT ATTORNEY GENERAL’S OFFICE AS HORNE OFFICIALLY JOINS STATE EFFORT TO DEFEND S.B. 1070 AGAINST OBAMA ADMINISTRATION LEGAL CHALLENGE

PHOENIX (Wednesday January 20, 2011) - Attorney General Tom Horne today announced his office has filed an appearance in U.S. v. Arizona, the Obama administration’s federal court challenge to S.B. 1070.  Attorney General Horne is appearing as counsel for the State of Arizona and will work with Governor Brewer’s counsel, who have been defending the Governor and the State in numerous federal court lawsuits challenging S.B. 1070.

“I promised the people of Arizona that as the top law enforcement officer of this state, I would vigorously defend state law,” Horne said.  “Today I am fulfilling my vow to defend S.B. 1070 in the courts against the attack by the Obama administration challenge to the law.”

He added, “It is the responsibility of the federal government to secure the international border.  Despite the claims of members of the Obama Administration that the border is ‘as secure as it’s ever been’, the evidence is to the contrary.  There are far too many incidents of violence – including the recent murder of a Border Patrol Agent – drug and human smuggling, kidnappings and other criminal acts along the border that must be dealt with swiftly and aggressively.  S.B. 1070 is an important tool in that effort.”

Horne concluded, “I would urge the Obama Administration to drop its challenge of the law and allow Arizona to utilize every legal means at our disposal to combat crime along the border.  Absent that action, I will use my office as Attorney General to defend S.B. 1070 all the way to the U.S. Supreme Court, if necessary.”

Editors:  Attached is a link to a brief video of Tom Horne discussing today’s action.  Broadcast outlets are free to use this video/audio.
http://vimeo.com/18997420
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