Fiesta Bowl Scandal Update

Posted by AzBlueMeanie:

Thank God there is still one newspaper in this state doing its job, and one reporter who deserves kudos for her work – Ginger Rough of the Arizona Republic.

"King" Russell Pearce flatly stated on April 1, 2011 that he had "receipts" for all of the Fiesta Bowl related activities that he participated in over the past decade. On May 12, 2011, some six weeks later, he finally produced some cancelled checks for tickets to some events, but not for others, and few "receipts." Read Russell Pearce's statement (.pdf):

"In the last few weeks, I have spent considerable time and effort to review a decade’s worth of financial records to document proof of reimbursements to the Fiesta Bowl organization. However, during the time I have spent researching ten years of records, one thing seems clear: the Fiesta Bowl’s execution of submitting timely invoices and processing payments was haphazard at best, and non-existent at worst."

Here is the latest on the Fiesta Bowl scandal from Ginger Rough at the Arizona Republic. 2 officials stand out in Fiesta Bowl gifts scandal:

When the Fiesta Bowl wanted public subsidies from the state and the city of Tempe in 2005, the college football organization turned to a pair of friendly politicians: Russell Pearce and Ben Arredondo.

Interviews and examinations of public records show that Pearce, a Republican, was influential in passing legislation that gave the bowl a state subsidy worth $263,000 and additional money to run a national championship game at Glendale's University of Phoenix Stadium.

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Pearce, a powerful budget writer in the Legislature, and Arredondo, a longtime Tempe city councilman who is now a state lawmaker, have been identified in the Fiesta Bowl's investigative report as recipients of gifts. The report is also full of details about other spending irregularities and possibly illegal campaign donations by the bowl.

While numerous elected officials received Fiesta Bowl gifts over the past decade, those given to Pearce and Arredondo stood out in the bowl's investigation because of the large amount of money spent.

After the report was released, Pearce and Arredondo amended their financial disclosure forms to report gifts previously received from the bowl. By state law, elected officials are supposed to report gifts to them annually; the gifts Pearce and Arredondo reported were made years earlier.

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Pearce and gifts

Pearce entered the Legislature in 2001 and was named a member of the powerful Appropriations Committee. He has since become one of the most influential politicians in Arizona. After stints as the budget writer in both the House and Senate, Pearce became Senate president this year.

On April 1, a few days after the Fiesta Bowl report was released, Pearce told The Republic he had never accepted free tickets to football games from Fiesta Bowl representatives, and that he paid for all his tickets "immediately, at the time" he received them.

Yet three weeks later, Pearce amended eight years of financial disclosure forms – 2002 to 2010 – to reflect gifts from the "Fiesta Bowl Committee." He also said he paid $272 to the bowl because he did not have "physical proof of payment" for tickets he received.

His relationship with the bowl dates at least to the year after he was elected to the Legislature, when he took a trip to Denver at bowl expense to watch a college football game. In 2004, he and his wife joined other legislators on a bowl-sponsored trip to Berkeley, Calif., to catch a college football game.

In 2005, Pearce pushed through legislation giving the Fiesta Bowl a public subsidy worth $263,000, as well as more control over operations during the 2007 national championship game at University of Phoenix Stadium.

Pearce, in a written response to questions from The Republic, said the 2005 legislation passed with overwhelming support. There was just one "no" vote, and it was signed into law by then-Gov. Janet Napolitano.

The bill "was not in my control," Pearce wrote. "I did not sponsor the bill."

However, legislative records show Pearce was the sponsor of the bill. While the bill was amended by another lawmaker, it was done so with Pearce's knowledge, and he has publicly taken credit for helping the Fiesta Bowl.

In 2007, the bowl said, it paid $2,140 for tickets for Pearce for a Navy football game.

Pearce, however, said he did not have to pay for those tickets because the Fiesta Bowl asked him to attend a speaking engagement at the game in Annapolis, Md. At the event, he said, he presented a check from the Fiesta Bowl. He said he was not required to reimburse the bowl because state law allows a legislator to accept gifts when performing a "ceremonial function."

A Navy spokesman said he was unable to determine if Pearce attended a speaking engagement. Terry Fahn, a Fiesta Bowl spokesman, said to the best of his knowledge there was no record of the bowl asking Pearce to make a presentation at the Navy game.

In 2008, the bowl said it paid $4,060 to provide Pearce tickets for a Los Angeles game between Ohio State and the University of Southern California. Pearce, however, said the tickets went to a family member.

Pearce wrote that his adult son, Justin, "contacted his personal friend Gary Husk (who also was Justin's attorney) about purchasing tickets to this game." The bowl said it was never paid for the tickets.

Husk is the bowl's former lobbyist, now facing a State Bar of Arizona investigation after Fiesta Bowl employees accused him of being involved in a scheme to reimburse employees for campaign contributions. Husk could not be reached to discuss Pearce's explanation. But he previously denied any wrongdoing.

Justin Pearce also could not be reached for comment.

In 2009, the bowl said it made available for Russell Pearce $923 worth of Fiesta Bowl tickets. Pearce later that year got involved in concessions-contract discussions involving University of Phoenix Stadium. The senator questioned the Arizona Sports and Tourism Authority, which ran the stadium, about why it awarded a deal to the Arizona Cardinals, which for years had numerous stadium-related disputes with the Fiesta Bowl.

Last year, after taking $1,025 in campaign contributions in November 2009 from Junker and two other Fiesta Bowl executives, Pearce sponsored legislation calling for an audit of the sports authority. At the time, the sports authority was embroiled in a lawsuit with the Fiesta Bowl, and had just come off a state audit in 2009 that found no significant violations.

The Arizona Republic also provides a useful timeline of events. Fiesta Bowl investigation: Pearce, Arredondo timelines:

Pearce timeline

Senate President Russell Pearce, R-Mesa, and his family had a long relationship with the Fiesta Bowl. The lawmaker, who has received numerous gifts from the bowl, helped pass legislation from which it financially benefited. Here's a look at the relationship:

2002: Pearce joined other legislators on a Fiesta Bowl trip to Denver.

2004: Pearce and his wife joined other lawmakers on a bowl-sponsored trip to Berkeley, Calif.

2005: In April, Pearce provided key support for legislation giving the Fiesta Bowl a public subsidy worth $263,000. The measure was a late amendment to one of Pearce's bills, and it received almost unanimous support in the Legislature. In October, Pearce joined other legislators on a bowl-sponsored trip to Chicago, staying at the Ritz-Carlton.

2006: Pearce joined other legislators on a Fiesta Bowl trip to Atlanta.

2007: In September, Pearce received tickets worth $2,140 from the Fiesta Bowl for the Air Force vs. Navy college football game in Annapolis, Md.

2008: According to the bowl, it gave Pearce tickets in September worth $4,060 for a football game in Los Angeles between Ohio State and the University of Southern California. Pearce said his adult son, Justin, obtained the tickets through a bowl lobbyist.

2009: The bowl in January provided Pearce $923 in Fiesta Bowl game tickets with parking passes. In August, Pearce was the lead author of a letter addressed by seven legislators to the Arizona Sports and Tourism Authority questioning the authority's concessions contract with the Arizona Cardinals. The Fiesta Bowl for years had disputes with the Cardinals over stadium issues. In October, Pearce joined other legislators on a bowl-sponsored trip to Dallas. In November, Pearce received $1,025 in campaign contributions from three Fiesta Bowl executives, including one who said employees were reimbursed for making contributions, which would be illegal.

2010: In February, Pearce sponsored legislation calling for an audit of the Arizona Sports and Tourism Authority, which at the time was embroiled in a lawsuit with the Fiesta Bowl. The state had conducted an audit the previous year. Both audits (2009 and 2010) found no significant violations.

Sources: The Arizona Republic, Fiesta Bowl special report, state campaign-finance disclosure forms, Russell Pearce

Sen. Ron Gould, R-Lake Havasu City, chairman of the Senate Ethics Committee, said this week that his review of financial-disclosure forms and other records indicated that some current and former state senators did inappropriately accept free game tickets and other gifts from the Fiesta Bowl. Senate ethics chairman: Records suggest improprieties:

[Gould] said Thursday that he was prepared to send letters to a "handful" of lawmakers, asking them to explain the alleged improprieties, but he is holding off on taking any formal action until the Maricopa County Attorney's Office completes its inquiry into whether the politicians violated any criminal or civil statutes.

"They haven't made a determination yet," Gould said of County Attorney Bill Montgomery and his team. "And I don't want to mess up a potential criminal case with an ethics issue."

He said Montgomery feared any potential criminal investigation could be jeopardized if senators were compelled to testify before the ethics panel.

Gould added, "On my end, they essentially get a political spanking. A criminal violation, if there is one, is a much bigger deal."

Jerry Cobb, Montgomery's spokesman, said the county attorney would not comment on the status of his probe or a timetable for wrapping up the investigation.

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To date, 15 current and former state lawmakers have amended their financial reports to reflect gifts received from the Fiesta Bowl or other organizations.

Those retroactively disclosing Fiesta Bowl gifts in excess of $500 include Republican Secretary of State Ken Bennett, who went on two trips in 2003 and 2004, when he served in the Arizona Senate; current Senate President Russell Pearce, R-Mesa; former House Speaker Kirk Adams, R-Mesa, who resigned his seat to run for Congress; and former City Councilman and current state Rep. Ben Arredondo, D-Tempe.

The Secretary of State's Office recently put lawmakers' 2011 forms online for public inspection. Financial Discosure Statements Public Access.