On Wednesday, former Corporation Commissioner Gary Pierce, his wife Sherry, lobbyist Jim Norton, and George Johnson owner of Johnson Utilities pleaded not guilty to bribery and fraud charges in federal court in Phoenix, Arizona.
Also on Wednesday, Norton’s former wife, Arizona Mining Association president Kelly Norton, resigned from her position. It has been rumored that she is the unindicted co-conspirator mentioned in the charging documents.
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Related Article: Ex-Regulator Pierce, Lobbyist Norton, Utility Owner Johnson Charged With Conspiracy, Bribery, Fraud |
Sherry Pierce was placed on unpaid administrative leave from her post by her boss, Rep. Andy Biggs. She has served as deputy district director for the congressman.
August 1, 2017 is the date set for a trial in the prosecution of the four for their alleged role in an illegal deal in which the Pierces received money in exchange for Gary’s vote to approve higher rates for Johnson Utilities, and allow Johnson to cover the cost of his personal income taxes with ratepayers’ money.
ACC continues to block Burns
The indictments of the Pierces, Norton and Johnson have highlighted the necessity of Commissioner Bob Burns’ fight with his fellow commissioners for transparency. The Commission has been shrouded in scandal since at least the 2014 election of Commission chair Tom Forese, and Commissioner Doug Little.
Burns is suing APS and its parent company Pinnacle West Capital Corp., to disclose whatever, if any, the organization spent to get the utility-friendly commissioners elected.
In what appears to many to be a CYA move, Commissioner Andy Tobin announced last week that he wants to review the policy change Pierce supported that benefited Johnson.
In an interview on Wednesday on the James T. Harris show, Burns was asked about Tobin’s announcement. “Commissioner Forese and Tobin are kind of joined at the hip, and so Commissioner Forese assigned Commissioner Tobin to do an investigation of Johnson Water,” said Burns. “As you reported earlier, Jim Norton is the lobbyist involved in the particular exchange that supposedly took place between Pierce and Johnson, and Norton is a lobbyist. He contributed to Tobin’s campaign a nice healthy sum of $3000. So how fair can Tobin be in this? Is he the right person to be doing the investigation, and why have they moved so fast to do an investigation when they won’t allow me to do an investigation into $3.2 million exchange of money that is perceived to have been carried on by APS?”
[Listen to the interview here]
According to campaign finance records, the Pierce’s son, Justin, donated $500.00 to Tobin’s campaign as well.
In June 2016, the Arizona Republic reported on an FBI investigation into the 2014 election, and the Pierce family:
“The FBI is currently conducting a long-term investigation related to the financing of certain statewide races in the 2014 election cycle,” said special agent Matthew Reinsmoen.
Pierce was serving as one of five state utility regulators at the commission in 2014, as his son, Justin, campaigned unsuccessfully for secretary of state.
Critics, including former Commissioner Sandra Kennedy, voiced concerns that APS would contribute to (Justin) Pierce’s campaign — via independent political groups that don’t disclose their donors — in exchange for favorable votes from his father (Gary). Kennedy asked that (Gary) Pierce recuse himself from a vote involving APS and solar.
The non-profit Free Enterprise Club, which isn’t required to disclose donors, spent more than $500,000 supporting Justin Pierce’s 2014 secretary of state run and opposing his rivals.
In a statement to The Arizona Republic in 2014, Gary Pierce said there was no tie between his votes on the commission and his son’s campaign for office. “It should go without saying, but to set the record straight, I have never made a deal with APS to cast a vote in exchange for a benefit to my son Justin Pierce’s campaign for Secretary of State,” he wrote.
(Gary) Pierce termed out that year and now works as a political consultant.
According to the blog, MesaZona, “At the time of an FBI investigation back in 2015, Pierce was employed by Mesa-based Americopy, a large commercial printing company that also has a division called Amagine Communications that runs Republican campaigns for the commission with the Clean Elections money the candidates get.”
Slow burn
In his interview, Burns told Harris that the wheels of justice turn slowly. It appears his fellow commissioners hope to grind those wheels to a halt.
According to the Daily Courier, Maricopa County Superior Court Judge James Kiley “said it is premature for him to rule on Burns’ request that he order the records produced. Instead, he said that Burns first needs to ask the full commission to compel the utility and its parent to produce the documents.”
Burns told Harris that he is trying to get his fellow commissioners to vote on the issue. The next meeting is scheduled for June 13, and Burns told Harris, “As of this moment nothing has been put on the schedule and time is running out.”
Recently the Arizona Republic Editorial Board noted, “The controversies dogging the ACC are eroding public confidence and creating the perception that a culture of secrecy is breeding corruption. From the governor on down, it’s time for Arizonans who have big microphones to demand the ACC turn on the lights.
The public’s patience will likely soon be running out too.