Arizona Attorney General Terry Goddard 2006 Annual Report

Message from Attorney General Terry Goddard
I am proud to present
the Attorney General's
Office 2006 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,
2005, through June 30,
2006.
In an active, successful 2006 fiscal year, our Office:
• Led the fight to protect our children, neighborhoods, police and firefighters from the
dangers of methamphetamine. I pushed to make it harder for meth cooks to obtain
pseudoephedrine, the key ingredient. When the Legislature failed to act, I supported
the efforts of more than 40 cities and towns that passed our proposal. We prosecuted
52 meth cases during the year. The governor and I hosted the state's first multidisciplinary
conference on meth, attracting more than 700 participants.
• Stepped up efforts against human and drug smuggling across the Mexican border. Our Border Trafficking Team
prosecuted human smuggling, drug smuggling, selling fake IDs and related crimes. By targeting money transmitters,
we disrupted “coyote” operations. I hosted the Attorneys General Border Conference which produced agreement to
strengthen law enforcement cooperation on both sides of the U.S.-Mexican border.
• Successfully prosecuted two former executives of the Baptist Foundation of Arizona in the longest criminal trial in
state history. The 10-month trial ended with guilty verdicts against the foundation’s former president and general
counsel. The foundation owed 11,000 investors more than $550 million when it went into bankruptcy in 1999.
• Continued to make progress in Colorado City. Polygamous sect leader Warren Jeffs was indicted on several felony
counts and placed on the FBI's “10 Most Wanted List.” (He was arrested Aug. 28, 2006, and awaits criminal trials in
Arizona and Utah.) The seriously mismanaged Colorado City School District was put into receivership. Jeffs and
other trustees of the United Effort Plan Trust, which owns most of the town's property, were replaced.
• Helped negotiate a $325 million settlement with Ameriquest Mortgage Co., the largest sub-prime mortgage lender in
the country. It was the second-largest state or federal consumer protection settlement in history.
• Investigated the huge jump in Arizona’s gasoline prices after Hurricane Katrina hit in August 2005. Our Office found
that post-Katrina oil industry profit margins were two to three times higher than normal.
• Settled deceptive advertising cases with four Arizona auto dealers, who are paying a total of $205,000 in fines.
In the past year, attorneys in our Office have prosecuted ID thieves, settled numerous consumer fraud cases and protected
the civil rights of Arizona residents. Our Office has also provided valuable help and information to tens of thousands of
citizens. It is an honor to serve as your Attorney General.
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