Arizona Attorney General Terry Goddard 2010 Annual Report

Criminal Division (continued)
indicted on charges related to
his unauthorized access and/or
misuse of the ACJIS computer
system for personal purposes.
ACJIS is a state-managed law
enforcement database housing
sensitive information relating
to driver registrations, criminal
backgrounds, home addresses,
and other pertinent information
of Arizona citizens. An ongoing
investigation revealed that
Ingram also accessed additional
databases including “Spillman”
(owned and operated by the
Pima County Sheriff’s Office)
and “CopLink” (owned and operated
by the Tucson Police Department)
that he used without
lawful purpose. The defendant
pleaded guilty to four class 6
felonies for unlawful computer
tampering, police officer, and his
police officer certification was
revoked as a condition of his
plea. Sentencing is pending.
State v. Franklins d/b/a
Hurricane Motors d/b/a
Riteway Financial
Defendants were John David
Franklin; his son John Jay
Franklin; Hurricane Motors; and
Riteway Financial of Tucson. The
dealership never obtained licensure
from the State and sold
mostly older and high-mileage
cars with high-interest loans
to unsophisticated consumers
with either no credit or credit
problems. Vehicles sold were
seldom registered in the name
of the purchaser, and the defendants
collected Arizona sales
tax which was never paid to the
State or refunded to consumers.
Defendants also collected a vehicle
license tax with each sale
which was seldom paid to the
State. Also collected with each
sale was a “bank fee”, customarily
$595, which was prohibited
by law since defendants did not
have necessary licensing to sell
vehicles on credit. During the
five years they were in business,
defendants made more than
500 sales, and just in prohibited
transaction fees and taxes
the fraud scheme netted as
much as $1 million. The owners
and his son were indicted
on criminal charges of illegal
enterprise, fraudulent schemes
and artifices, forgery and money
laundering. The business and its
assets were seized and a complaint
filed seeking forfeiture as
a financial remedy. Litigation is
pending in both the criminal and
civil cases.
State v. Carlos Munoz
A routine traffic stop by a
DPS canine unit on Interstate
10 yielded 26 packages of
methamphetamine weighing
approximately 39 pounds and
one package of cocaine weighing
approximately two pounds
concealed in sophisticated
hidden compartments inside a
vehicle. The wholesale value
of the methamphetamine alone
exceeded $800,000. The
vehicle had crossed the U.S.-
Mexico border six days earlier.
The defendant, Carlos Munoz,
was convicted and sentenced to
seven years in prison.
Financial Remedies Section
State v. Ferguson
With assistance of the U.S.
Department of Justice, the section
reached an agreement in
principle with defendant Charles
Bruce Ferguson, and with British
authorities, for the return of
funds from accounts controlled
by Ferguson in the Isle of
Jersey for forfeiture. Ferguson
pleaded guilty to theft charges
in the criminal prosecution in
September 2009, and three
months later was sentenced to
five years in prison. Ferguson
operated elaborate investment
schemes that defrauded at least
42 people of more than $3
million. The section anticipates
obtaining a final civil judgment
for more than $3 million
(all of which, to the extent
ultimately collected, will go to
victim restitution); repatriation
of Ferguson’s funds from Isle
of Jersey; commencement of
victim restitution payments of at
least $525,000, and liquidation
of forfeited personal property.
State v. Global Medicines
In December, 2009, the section
obtained an order of forfeiture
for approximately $150,000
cash and five parcels of property
worth over $1,100,000 plus
final judgment for approximately
$1.6 million against Lawrence
Carl Runke, 66, of Clarkdale.
This case involved Runke’s
operation of an illegal pharmacy,
Global Medicines, in Clarkdale.
The pharmacy purchased
unapproved drugs from suppli-
Arizona Attorney General Terry Goddard • 2010 Annual Report
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