Arizona Attorney General Terry Goddard 2010 Annual Report

Message from Attorney General Terry Goddard
I am proud to present the
Attorney General’s Office
2010 Annual Report. This
report shows the scope
and depth of the work
of this Office and its
talented staff during the
fiscal year July 1, 2009
through June 30, 2010.
Office highlights from a very productive 2010 fiscal year included:
• A $94 million settlement with Western Union. This historic recovery will
provide substantial resources for law enforcement agencies in the four
Southwest border states to combat illegal activity along the U.S.-Mexico
border. The agreement also will give law enforcement ongoing data on
money transactions to help disrupt the flow of funds to the Mexican drug
cartels. The settlement resolved seven years of litigation over money
transfers, some of which were used for criminal purposes.
• An aggressive campaign against mortgage fraud and predatory lending.
With Arizona hard hit by foreclosures and loan defaults, our Office
developed a multi-pronged strategy to fight predatory lending practices
and scams. We worked to stop deceptive marketing of mortgages,
deceptive practices of servicing loans and fraudulent “mortgage rescue”
scams. We’ve also sought to educate homeowners about how to avoid
scams and how to work with lenders to avoid foreclosure.
• A crucial agreement to protect Luke Air Force Base. Our Office played
the leading role in gaining a settlement with the Maricopa County
Board of Supervisors to resolve a two-year legal fight over residential
encroachment near the base. The settlement greatly improved Luke’s
chances of being chosen as a training site for the F-35, the next
generation of Air Force fighter jets.
• Ending high-interest payday loans in Arizona. Our Office worked to
ensure that the State’s payday loan law “sunset” as scheduled on
June 30. We created an Operation Sunset Enforcement Team to make
sure payday loans, with annual interest rates of 400 percent or more,
were no longer marketed. We also filed a lawsuit seeking $5 million
in restitution against Quik Cash, one of the nation’s largest payday
lenders, alleging deceptive business and
debt collection practices.
• Effective efforts to stop deceptive
advertising and marketing. Cases
included a $12 million settlement with
LifeLock, Inc., of Tempe, resolving
allegations that the company overstated the effectiveness of its identity
theft protections, a $175,000 settlement with a Tucson company over
deceptive marketing of nutritional supplements, and a pair of deceptive
advertising settlements with auto dealers.
• Dismantling two major drug-trafficking organizations. Operation Vaqueros
led to the indictment of 39 people and brought down a Mexican drugsmuggling
organization that moved at least 40,000 pounds of marijuana
through southern Arizona. Operation Los Tusa led to 21 indictments and
knocked out a violent organization that smuggled thousands of pounds of
marijuana from Mexico into Pinal County.
• Several major recoveries from international drug companies, including a
$33 million deceptive marketing settlement with Pfizer, Inc.
• The highest award given by the National Association of Attorneys General.
I received the Kelley-Wyman Award, the association’s highest honor, this
past June. The award is a clear reflection of the excellent work done by
the hard-working attorneys and staff in our Office.
It is an honor to serve as your Attorney General.
Arizona Attorney General Terry Goddard • 2010 Annual Report
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