Ariz. official suspended amid fraud probe
Adoption scheme has state pondering next step
An elected official in Arizona was suspended Monday after he was charged with running a human smuggling scheme that brought pregnant women from the Marshall Islands to the U.S. to give birth and then paid them to give up their children for adoption.
The Maricopa County Board of Supervisors, Arizona’s most populous county, unanimously voted to suspend County Assessor Paul Petersen without pay for 120 days. He faces charges related to the case in three different states.
The board’s decision comes after weeks of closed-door deliberations about whether the board has the legal authority to discipline Petersen, an adoption lawyer. The Maricopa County Board of Supervisors doesn’t have the power to permanently remove him from his office.
However, state law does give the board authority to suspend the assessor for up to 120 days for “neglect of duty.” The supervisors said they believe Petersen’s absence from office qualifies as neglect of duty. He’s been in custody since Oct 8.
It’s unclear what, if anything, the supervisors will do after the 120-day unpaid suspension. They could use a state law that deems an elected office vacant if “the person holding the office ceases to discharge the duties of office for the period of three consecutive months.”
Petersen’s attorney Kurt Altman said in a statement that there was no basis for suspension.
“The allegations against him have nothing to do with the operation of the County Assessor’s Office, which has not missed a beat during this trying time for Paul and his family,” he said.
He said the board’s actions were likely a violation of the Arizona Constitution and reiterated that Petersen is innocent until proven guilty.
“Actual evidence is presented in court. To date, there has been no evidence presented against him,” Altman said.
Petersen was arrested in Arizona after a state grand jury indicted him on 32 counts of fraudulent schemes, conspiracy, theft and forgery.
The Arizona Attorney General’s Office alleges Petersen illegally arranged for 28 pregnant women from the Republic of the Marshall Islands to fly to Arizona, live crammed in a house he owns and deliver their babies paid for by the state’s Medicaid system before placing them for adoption.
Petersen charged families $25,000 to $40,000 per adoption, prosecutors said.
The criminal case spans three years and involves some 75 adoptions, authorities said, with about 30 adoptions pending in three states.
He also faces multiple felony charges in Utah and in federal court in Arkansas related to the alleged international adoption scheme.
Chairman Bill Gates ordered an audit into whether Petersen used public resources for his private-sector job following his arrest. It showed that Petersen likely used his county computer and phone for work related to his private law firm. The auditor found no evidence that Petersen misused county funds.
Of about 34,000 preserved emails reviewed, the auditor found 181 emails not related to county business. Thirty were related to adoptions, 120 related to other legal services and the remainder were personal.