Former Maricopa County Assessor Paul Petersen Pleads Guilty To Fraud In Adoption Scheme

By Matthew Casey, Katherine Davis-Young
Associated Press
Published: Thursday, June 18, 2020 - 12:34pm
Updated: Friday, June 19, 2020 - 3:09pm
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Maricopa County Sheriff's Office
Paul Petersen

A former elected official in metro Phoenix accused of running an illegal adoption scheme in three states involving women from the Marshall Islands pleaded guilty Thursday to fraud charges for submitting false applications to the Arizona’s Medicaid system for the mothers to receive state-funded health coverage.

Paul Petersen, a Republican who served as Maricopa County’s assessor for six years until his resignation in January, faces a maximum of 17 years in prison for his guilty pleas on Arizona charges of fraudulent schemes and forgery.

On behalf of Petersen, Altman acknowledged that his client and another person collaborated on getting state-funded health care for adoptive mothers, even though Petersen knew the women didn’t live in Arizona.

Asked by the judge whether Altman’s summary was correct, Petersen answered, “It’s true.”

→ Compact May Mean Legal Danger For Marshallese Women Found In Mesa, If They Choose Adoption

He is accused of illegally paying women from the Pacific island nation to come to the United States to give up their babies in at least 70 adoption cases in Arizona, Utah and Arkansas over three years. Citizens of the Marshall Islands have been prohibited from traveling to the U.S. for adoption purposes since 2003.

Authorities say the women who went to Utah to give birth received little or no prenatal care. They also said Petersen and his associates took passports from the pregnant women while they were in the U.S. to assert more control over them.

Previously, Petersen had proclaimed his innocence. His attorneys have said Petersen ran a legal adoption practice and has been vilified before his side of the story comes out.

As a member of The Church of Jesus Christs of Latter-day Saints, he completed a proselytizing mission in the Marshall Islands, a collection of atolls and islands in the eastern Pacific.

Lynwood Jennet, who was accused of helping Petersen in the scheme, pleaded guilty late last year in Arizona to helping arrange state-funded health coverage for the expectant mothers, even though the women didn’t live in the state. She agreed to testify against Petersen.

Authorities say Jennet, who is scheduled to be sentenced on Aug. 22, assisted the birth mothers in applying for the health benefits at the direction of Petersen.

Officials have said 28 Marshallese women gave birth in the Phoenix area as part of the scheme, costing Arizona more than $800,000 in health care expenses, and that their children were put up for adoption through Petersen.

Because he is facing multiple felony charges in all three states, Petersen has asked that the judges combine his charges into one federal sentence, which could reduce his time.

No sentencing date has been set for Petersen in Arizona.

Petersen also pleaded guilty in Utah on Friday to human smuggling and communications fraud.

“Today, Utah is safer. The rest of America and our friends in the Marshall Islands are safer. Today, justice begins to be served as Mr. Petersen will be held accountable for his crimes while his many victims are given some closure in the aftermath of this tragedy,” said Utah Attorney General Sean D. Reyes in a press release. “We’ve sent a clear message. Whether you are committing fraud, human smuggling, trafficking or any related crimes, we will aggressively protect Utahns and come after you.”

Petersen faces up to 15 years in prison and a $50,000 fine in Utah.

He may also have to forfeit his law license, according to the Utah attorney general.

KJZZ's Holliday Moore contributed to this report.

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