Good government critics of Governor Doug Ducey often say he spends more time managing his image than he does state business. A recent records request for the costs associated with two major lawsuits against the governor, shows that the criticism just might have merit.
Speaking of merit, in the cases of Leslie Merritt Jr., otherwise known after a braggadocios Ducey Tweet as the “Highway Shooter,” former DES director Tim Jeffries, and former DES Chief Law Enforcement Officer Charles Loftus, the cost to taxpayers for Ducey’s image management plan has topped nearly $3 million with millions more projected.
Every administration, since the day Arizona became a state, has faced lawsuits. The cases are typically handled by the Arizona Attorney General’s Office. At times, the Arizona Attorney General’s Office conflicts out of a case and the job of legal representation for the State is farmed out to private law firms, typically well-connected, high-priced law firms.
Those lucky legal firms find themselves with a reliable well-paying client, who too often gives little thought to the mounting bills. Cases that could – and arguably should – be settled early on, persist and are prolonged, and eventually settled at the last minute.
In cases that involve the Governor’s poor judgment, and require image management, the costs often soar.
“The Manufactured Crisis”
The legal case of Jeffries and Loftus involves the Ducey administration’s attempt to head off what could be its own bad publicity by creating bad publicity for Jeffries and Loftus. From allegedly releasing fake information to withholding accurate information, the Ducey administration was able to steer reporters in the wrong direction and turn them on the two innocent public servants. (Related: The Destruction Of DES And Good Men)
The attacks on Jeffries and Loftus appeared to start when the duo and their DES team developed a criminal case against Hacienda Healthcare and pressed the Office of the Arizona Attorney General to drive the criminal investigation. In that case, it was alleged that the Hacienda Healthcare was engaged in fraudulent billing practices as highlighted in a recent DES audit of some of Hacienda Healthcare’s expenses.
Related:
Public Corruption In Arizona Takes All Forms
Jeffries, Loftus Fight Against State Corruption Advances In Court
You might recall Hacienda Healthcare from recent headlines. One of the company’s key facilities made international headlines this past year after an incapacitated developmentally disabled woman gave birth, surprising the care staff who were unaware the patient was pregnant.
On a related note, it has been widely reported that the former CEO of Hacienda, William Timmons, was a campaign contributor for the Governor. It also rumored that Timmons and his affiliates were significant contributors to dark money sources orchestrated by the Governor’s Chief of Staff Kirk Adams to benefit and promote the Governor and his agenda.
Related:
Nurse arrested for allegedly raping helpless Hacienda woman
Timmons Resigns From Hacienda, Previous Cover-Ups Alleged
Why did the state ignore warnings leading to rape of unconscious Hacienda patient?
Jeffries and his executive team also attempted to terminate the vendor of an uncontracted, multi-million dollar software development program known as HEAplus to handle medical and welfare client eligibility and enrollment. HEAplus is currently over budget by $150 million with no end in sight. The enterprise software system is plagued by outages and is reviled by DES social workers. It remains far from accomplishing its now stated goals that were NOT outlined in a contract document because the system was commissioned via a time and materials agreement.
Related:
Jeffries Details Failures Of HEA Plus, Arizonans Wrongly Denied Medicaid Benefits
Failures Of AZDES System HEA Plus Leads To $142 Million Wasted Taxpayer Funds
Ducey Shuts Down Testimony By Jeffries, Loftus On DES Debacle
According to Jeffries, Loftus, and others, not long after Loftus at Jeffries’ direction compelled the Arizona Attorney General’s Office to open a criminal investigation on Hacienda Healthcare and intensified their push to investigate and eliminate the HEAplus software vendor, SIS LLC, they were ousted from DES on November 23, 2016. (Related: Jeffries, Loftus Fight Against State Corruption Advances In Court)
It’s been reported that the Governor’s Chief of Staff Kirk Adams asked Jeffries to resign the first time on October 20, 2016 when Jeffries was pressing very aggressively to attack fraud, waste and abuse throughout DES and Arizona, including the investigative pursuit of another member Arizona House of Representatives who was financially exploiting an elder parent. However, not surprisingly Jeffries refused to resign and quite surprisingly Governor Ducey kept him on.
Sources say Adams was incensed that Jeffries was not fired by his boss. He was also incensed that Jeffries did not relent from pressing aggressively against fraud, waste and abuse even though Adams with the Governor’s approval had stripped Jeffries of his ability to terminate problem employees.
Related:
Phoenix Couple Sentenced For Food Stamp Fraud
Rep. Cecilia Velasquez Indicted For Suspected Food Stamp Fraud
Audit Finds DES Vocational Rehab Needed Reforms Jeffries Sought
One full month later, and a slew of Ducey administration-enabled negative press regarding Jeffries’ directorship, Jeffries was finally compelled to resign the day before Thanksgiving 2016.
This second and successful effort to oust Jeffries included the highly questionable terminations of Loftus and four other DES executives.
The media lapped up the sensational and spurious tidbits meted out by the Ducey administration as part of what Jeffries repeatedly called “The Manufactured Crisis.” The Manufactured Crisis involved clickbait-bound reports of “guns and ammo” that were allegedly nefariously stockpiled and even recklessly missing at DES.
Related:
Arizona’s Poor Lost When Jeffries Was Axed
Ducey’s Sleight of Hand With DES Security Puts Clients, Staff At Risk
Three separate internal inquiries were conducted pertaining the “guns and ammo” stories that were largely manufactured to smear Jeffries and Loftus. The first inquiry by DPS, which found (contrary to original reports) that the ammunition and guns were far below the amount needed for the agency. This inquiry was suppressed by the Governor’s Office and never released to the media all while the Governor’s Administration was promoting mismanagement at DES.
Related:
DES, DPS Investigation Details Documented By Many
DPS Changing Stories On DES Report Defy Logic And Interim Inspector General’s Claims
The second inquiry by DPS resulted in a published report titled the “DES Firearms Program Audit” alleging procurement issues and highlighting other false allegations despite key DES procurement staff having never been interviewed and Jeffries himself nor his former Inspector General having never been interviewed. This incendiary report was widely distributed to the press and served to perpetuate the smears against Jeffries and Loftus concocted by the Governor’s Administration.
Related:
DPS Audit Of DES Raises Questions, Provides Few Answers
The third inquiry was at the direction of senior DPS officials directing DES auditors (not DPS auditors) to re-examine many of the issues surrounding the incendiary “guns and ammo” stories including the allegations of numerous procurement violations. This internal inquiry was completed in the latter part of 2017, and not widely distributed to the media.
Similar to the first inquiry conducted by DPS over Thanksgiving Weekend 2016 after Jeffries resigned and Loftus and four others were terminated, the DES auditors found no significant procurement issues nor wrongdoing.
Related:
Ducey Removes Firearms From Police Officers During National Police Week
Tucson Shooting Shines Light On Ducey’s DES Security Failures
According to the Arizona Department of Administration (DOA) and Arizona DPS records, the state has paid $567,854.47 through August 2019 to defend against the defamation lawsuits launched by Jeffries and Loftus (later combined into one lawsuit). Yes, close to $600K in taxpayer funds expended so the Governor can protect his reputation.
Related:
Jeffries Files Notice Of Claim Against State For False DPS Statements In DES Audit
Loftus Files Notice Of Claim For False Statements In DPS DES Audit
According to the Jeffries’ and Loftus’ legal teams, their lawsuit is nowhere close to trial because the state – via external counsel – is dragging its feet with every possible legal maneuver, particularly by consistently objecting to key discovery requests.
The total defamation claims from Jeffries and Loftus exceeds six (6) million dollars, so it appears the price for protecting the Ducey legacy is going exceed the already high price tag. (Related: Loftus, Jeffries Sue State For Libel)
“We got him”
Many Arizonans recall the “Freeway Shooter” case in 2015, in which there were eleven separate incidents of someone shooting at cars on the I-10 in the West Valley. On September 18, 2015, Governor Ducey Tweeted “We got him” referring to the unannounced arrest of the young Leslie Merritt Jr. by the Arizona Department of Public Safety.
Officials claimed a gun in a pawnshop and ballistic records were the key evidence in nabbing their suspect. Merritt claimed his innocence but was locked up until April 2016, when he was suddenly released with all charges dropped.
Despite the Governor’s declaration of “We got him,” the physical evidence failed to add up. As a result, Merritt filed suit against the Department of Public Safety and the State of Arizona, ostensibly fueled by his six-month stay in the Maricopa County Jail and being labeled the freeway shooter.
Reportedly, the case is close to being settled, though many are likely curious how much the state has paid a private law firm in defending the state in this case.
According to records from the Arizona DPS, as of September 17, 2019, the State of Arizona has paid a whopping $2,314,635.33 in legal defense expenses for the Leslie Merritt Jr. Case. This is not including what the state is willing to pay Merritt to settle the case out of court. When this case is finally settled, it will shed new and unflattering light on the most expensive Tweet in Arizona’s gubernatorial history.
Related:
Combined, the Jeffries-Loftus and Merritt lawsuits have cost the State of Arizona $2,879,063.40, close to three (3) million dollars, apparently all to aggressively protect and positively fuel the Governor’s public image at the expense of hardworking cash-strapped taxpayers.
The San Carlos Apache family of the aforementioned Hacienda patient/rape victim recently and justifiably filed a $45,000,000.00 Notice of Claim against the State of Arizona leaving taxpayers to wonder just how much Ducey’s reputation is worth to them.
Related:
Will Phoenix Police Get To The Bottom of The Hacienda Scandals?
[metaslider id=178468]