The Arizona Supreme Court agreed Thursday to review whether the Citizens Clean Elections Commission can determine that the secretary of state incorrectly certified candidates’ qualifying contributions and order repayment of public campaign funds on that basis.
In the order, the justices granted review of two questions in Lombardo v. Arizona Citizens Clean Elections Commission. The court ordered the parties to submit simultaneous briefs by Monday, Oct. 19, at 4 p.m., and will consider the case on an expedited basis without oral argument.
Risa Lombardo and Duwayne Collier, the Green Party nominees for governor and secretary of state, are challenging the commission’s authority to demand repayment amid an investigation into whether they properly qualified for public campaign financing.
In September, Lombardo and Collier alleged that the threat of repayment obligations had effectively halted their campaigns and burdened their free speech rights. Their lawsuit also challenged the commission’s authority to revisit their qualification for public funding after certification by the secretary of state. At that point, the commission had directed Executive Director Thomas Collins to investigate further without issuing a repayment order.
The Supreme Court’s first question asks: “Does the Citizens Clean Elections Commission possess legal authority to determine that the Secretary of State’s certification of qualifying contributions was incorrect?”
The second asks: “If yes, does the Commission have the authority to order repayment of funds on that basis?”
Chief Justice Ann Scott Timmer signed the two-page order. It limits review to those questions and contains no ruling on the underlying allegations or express directive halting the commission’s investigation.
The candidates contend that the secretary of state and county recorders have authority to determine whether they collected sufficient qualifying $5 contributions. Their attorney, Timothy La Sota, has argued that the threat of repayment interfered with their campaigns and that relief after the election would come too late.
The litigation reached the state Supreme Court after Maricopa County Superior Court Judge Melissa Iyer Julian dismissed the candidates’ lawsuit. Julian concluded in her ruling that the challenge was premature because the commission had not completed its investigation or issued a repayment order.
“Plaintiffs’ challenge is to the basis for a repayment order that has not and may never be issued,” Julian wrote. “That claim is not ripe for this Court’s review.”
The judge said the administrative process could establish the facts and allow the commission to determine whether enforcement was warranted before judicial review.
The Court of Appeals declined special action jurisdiction on Oct. 6. Lombardo and Collier then sought Supreme Court review through a special action petition that the clerk docketed as a petition for review.
The Supreme Court considered the petition and responses from the commission and its executive director, Thomas Collins, before granting limited review.
The underlying investigation includes allegations that qualifying-contribution records were falsified. La Sota has disputed the accusations, characterizing them as conspiracy theories.
Federal authorities arrested a third grade teacher in Phoenix on child pornography charges last week.
Gabriel “Gabe” Lorenzo Chacon, 32, taught at Encanto Elementary School in the Osborn School District. Chacon was arrested by the Federal Bureau of Investigation (FBI) and charged with two counts of distributing, possessing, and accessing child pornography.
Investigators report that Chacon was a member of The Ganymedean Brotherhood, a group chat in which users shared child pornography and sexual abuse material, with a focus on babies and infants.
The FBI’s Child Exploitation Operation Unit learned of Chacon after receiving a tip from an undercover law enforcement officer in Australia monitoring The Ganymedean Brotherhood.
In the complaint against Chacon filed with the Arizona District Court, Chacon admitted to authorities that he was in a child pornography group chat and had saved child pornography to a website, but denied ever acting on what he described as his “fantasy.” The illicit files connected to Chacon contained visuals of victims that ranged in age from infants to teenagers.
Messages included in court documents reflect that Chacon appeared to have considered acting on his fantasies. In one message, Chacon asked his group chat what they would do alone in their classrooms if they were teachers. Chacon reportedly sent the message under his handle, “ND Dom,” during parent teacher conferences earlier this month.
“Hey friends, let’s say hypothetically you were a teacher and you had 3 hours to kill alone in your classroom afterschool [sic], what would you do [3 devil emojis],” asked Chacon.
The complaint reported that the undercover officer saw Chacon’s message and began to converse with him in a direct message. Chacon admitted to the officer that he was interested in children 10 years old and younger, mostly boys; revealed that he was a third grade teacher in Phoenix; and divulged that he would give “bj’s” between classes if he could.
Chacon also said he was into “brutal” sex acts with children. Between messaging nude pictures of himself and describing his pedophilic fantasies, Chacon repeatedly expressed his allegiance to Satan.
“Hail satan,” wrote Chacon.
When the undercover officer asked if Chacon had any sexual experience with children, Chacon claimed that he had while he was “babysitting back in high school.”
Chacon also told the officer that education was the perfect employment for alleged child predators such as himself, and that Phoenix was big enough to find “like minded [sic] friends.” Chacon went on to send the officer five videos of pre-pubescent boys being sexually abused by adult men.
“It’s a great gig for brothers like us,” wrote Chacon.
Chacon’s public social media activity indicated that he was a supporter of progressive causes and Democratic candidates, and that he practiced witchcraft.
In one X post, Chacon said he was “vaguely associated with the occult.” On the Reddit forum r/witchcraft, Chacon advised a user that hyacinth, a plant, was “great for curse breaking and love spells” in his practice.
Chacon received his master’s degree in education from Northern Arizona University last year while teaching. Prior to settling in Phoenix, Chacon’s Facebook page reflects that he resided in Albuquerque, New Mexico.
The Osborn School District issued a statement denying any knowledge of Chacon’s illegal activities. This semester marked Chacon’s third year teaching at Encanto Elementary School. Chacon previously taught at Solano Elementary School.
“We were assured that law enforcement had no information that any Osborn Elementary School students were connected in any way to the reported criminal behavior,” read the statement. “The District is fully cooperating with law enforcement in its investigation. Immediately upon learning of Mr. Chacon’s arrest, the District placed him on administrative leave, restricted his access to district technology and buildings, and reported the information to the Arizona State Board of Education.”
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Former U.S. Sen. Kyrsten Sinema told Arizona business and political leaders she voted for Republican congressional candidate Jay Feely in the primary.
Citing two people present for the conversations, Axios reported that Sinema described Feely as “commonsense” and a “fiscal conservative.” The outlet said the discussions occurred during informal meetings over the preceding month and that Sinema indicated she was likely to support him in November.
According to one source cited by Axios, Sinema indicated that she viewed Feely as the best person to help address Arizona’s water crisis, including cutbacks to the state’s share of the Colorado River.
Feely, a former NFL kicker backed by President Donald Trump, faces Democrat Amish Shah in Arizona’s First Congressional District. The seat is open following Republican Rep. David Schweikert’s unsuccessful bid for governor. Shah, an emergency physician, defeated Marlene Galán-Woods for the Democratic nomination.
The National Republican Congressional Committee (NRCC) highlighted the Sinema report, arguing that her reported support strengthens Feely’s appeal to voters who split their tickets. The committee also noted that former Republican Gov. Doug Ducey had endorsed Feely.
“Arizonans of all parties trust Jay Feely to fight for lower taxes, a stronger Valley economy and protecting our water,” NRCC spokesman Ben Petersen said. “In stark contrast, Socialist Amish Shah vowed to raise taxes an average of over $4,000 and impose socialized government health care while reopening the border and going easy on sex offenders.”
Sinema announced her departure from the Democratic Party on Dec. 9, 2022. She subsequently received her seniority and committee assignments through the Democratic Conference for purposes of organizing the Senate, while declining to participate in either party’s caucus.
Scoop: Sinema quietly boosting Republican Jay Feely for Arizona House seat https://t.co/mgTLdZM6Hs
Arizona permits voters registered as independent or without a party designation to select a recognized political party’s ballot in state primary elections. Participating in the Republican primary therefore does not, by itself, establish that a voter has registered as a Republican.
The congressional contest has included disagreements over water use and economic development. Shah criticized Feely’s support for data centers while citing Arizona’s drought and potential Colorado River reductions. His campaign said he opposes building the facilities within the First Congressional District because of water shortages and utility costs.
During his legislative service, Shah supported a 2021 measure extending Arizona’s data center tax incentive application deadline and a 2023 measure addressing the program’s refund provisions. Feely has defended data center development as important to American competitiveness in artificial intelligence, while calling for developers to address water and electricity demands through measures including recirculated water and off-grid operation.
The Arizona Corporation Commission (ACC) revoked a Scottsdale investment advisory business’s license and imposed a $2,500 administrative penalty after finding that its owner misled clients about a yearlong jail sentence and made false statements in regulatory filings about his felony conviction.
The commission approved the consent agreement involving Paul Marascalco and his sole proprietorship, Paul Marascalco Registered Investment Advisor, during its Oct. 7 open meeting, according to an Oct. 13 Securities Division filing. The ACC announced the enforcement action that same day.
The consent agreement states that the business had been licensed as an investment adviser since May 2015 and operated from Scottsdale. It provided investment advisory services to approximately 20 clients around December 2020, charging fees based on assets under management.
According to the agreement’s findings, Marascalco drove while intoxicated in Chandler on Dec. 25, 2020, failed to stop at a stop sign, and collided with another vehicle around 8:15 p.m. All five passengers in the other vehicle were injured and taken to a hospital, including a child who suffered a compound fracture to her arm.
Police tested Marascalco’s blood, with the lowest of three results showing a blood-alcohol concentration of approximately 0.202%.
Marascalco pleaded guilty to aggravated assault, a Class 3 felony, on Sept. 10, 2021. The court accepted his plea on Nov. 10, 2021, and sentenced him to three years of supervised probation. The sentencing terms included substance-abuse treatment and a 12-month jail term, with two days of credit for time served and no eligibility for early-release credits.
A week before sentencing, Marascalco emailed clients to announce that another investment adviser would oversee his practice during his absence. He described personal issues requiring his attention and called the planned leave a “sabbatical in some ways,” according to the email excerpt reproduced in the agreement.
Marascalco told clients he expected to be away for approximately one year and assured them he was neither retiring nor closing the practice. He also said he would remain involved in all decisions and trades associated with their accounts.
The agreement’s findings state that he did not tell clients the absence resulted from his felony conviction and jail sentence or explain that continued involvement in all account decisions and trades would be extremely unlikely during incarceration.
One client independently learned of the arrest and conviction and left the firm, rejecting the substitute adviser’s services largely because the client believed Marascalco had been dishonest about his forthcoming absence.
On Nov. 10, 2022, Marascalco emailed clients to say he had returned to the office. The findings state that he again omitted the reason for his absence and did not disclose that he had been unable to remain involved in all account decisions and trades while incarcerated.
The regulatory filings described in the agreement contained inconsistent disclosures about the conviction.
In Form ADV filings dated June 21 and July 30, 2025, and Jan. 19, 2026, Marascalco denied a felony conviction or guilty plea within the preceding 10 years. The agreement states that the filings were certified under penalty of perjury. In the January filing, he acknowledged a felony charge while denying a conviction or guilty plea.
A July 31, 2025, Form ADV Part 2B characterized the incident as a traffic violation involving a minor accident. An Aug. 11, 2025, version disclosed the aggravated assault conviction, supervised probation, and a 12-month jail condition. A subsequent version also asserted that no clients had been lost, despite the agreement’s account of the client who left after learning about the conviction.
The ACC announcement said Marascalco’s conduct constituted dishonest and unethical practices in the securities industry. Under the consent terms, the respondents admitted the findings and legal conclusions for purposes of the commission proceeding and specified related proceedings, and waived their rights to a hearing and appeal.
The agreement assigns the $2,500 administrative penalty to the sole proprietorship, with payment due within five months of the order. It also revokes the business’s investment adviser license and permanently orders the respondents and their agents, employees, successors, and assigns to cease and desist from violating Arizona’s Investment Management Act.
Marascalco agreed not to apply or reapply in Arizona for registration as a securities dealer or salesman, or for licensure as an investment adviser or investment adviser representative. The respondents also agreed not to offer investment adviser or representative services within or from Arizona at any time.
U.S. Rep. Andy Biggs (R-AZ-05) is backing legislation that would require states to conduct annual Medicaid fraud risk assessments and implement corrective plans to address weaknesses in their programs.
Amid his campaign for Arizona Governor, Biggs announced his support for the Medicaid Fraud Prevention Act on Oct. 13, citing federal concerns about Arizona’s Medicaid oversight and repeated delays in submitting required financial audits.
H.R. 10636 was introduced Sept. 28 by Rep. Michael Rulli (R-OH), with Biggs among its original cosponsors. The legislation was referred to the House Committee on Energy and Commerce.
“I’m pleased to co-sponsor the Medicaid Fraud Prevention Act to establish a clear baseline for states to identify fraud, recover improper payments, and correct deficiencies in their Medicaid programs,” Biggs said. “Arizona officials must take these responsibilities seriously. Taxpayers deserve accountability, and continued failures in oversight risk both federal funding and the public’s trust.”
Under the bill’s provisions, states would complete their first assessment within one year of enactment and repeat the review at least annually. The assessments would cover fee-for-service payments, managed care, and eligibility and enrollment systems.
States would rank vulnerabilities, estimate potential improper expenditures, evaluate existing safeguards, and identify gaps in data sharing and enforcement. Within 90 days of completing an assessment, they would have to implement a corrective action plan with measurable outcomes and deadlines.
The legislation would also require annual state reports to the Secretary of Health and Human Services (HHS) describing identified risks, corrective actions, and progress. HHS would report to Congress on national trends and states’ implementation of corrective plans.
Biggs’ office cited a recent warning from the administrator of the Centers for Medicare & Medicaid Services (CMS) identifying Arizona among eight states reporting “zero fraud referrals and overpayments recovered in Medicaid managed care.” According to the announcement, the states were given 30 days to review their figures and verify that oversight was occurring.
The warning concerns Medicaid managed-care reporting. It does not establish that Arizona had no Medicaid fraud investigations or recoveries across all programs.
Biggs also criticized the state administration’s oversight approach.
“For far too long, governments at every level have allowed a festering culture of fraud and waste of monumental proportions across the United States,” he said. “Government officials have a responsibility to be good stewards of taxpayer dollars and ensure that Americans’ hard-earned money is spent appropriately and protected from fraud.”
Separately, Arizona’s delayed federal audit submissions were the subject of a September hearing before the Joint Legislative Audit Committee.
HHS Assistant Secretary for Financial Resources Gustav Chiarello testified about Arizona missing the federal Single Audit deadline for four consecutive fiscal years.
The fiscal year 2025 audit, due March 31, 2026, remained outstanding at the time of the hearing. Auditor General Lindsey Perry projected that it might not be issued until March 5, 2027.
A Single Audit examines financial reporting and compliance with federal award requirements. The legislative statement said HHS had warned that continued noncompliance could result in additional funding conditions, withheld payments, disallowed costs, or suspension or termination of federal awards.
The audit delays prompted questions from Arizona lawmakers about the administration’s corrective plans and potential consequences for federally supported programs.
Biggs’ announcement also cited an estimated Arizona Medicaid improper-payment rate above 6%, without identifying the measurement year. CMS explains that improper payment estimates measure compliance with payment requirements and can include documentation deficiencies. They do not measure the percentage of spending attributable to fraud.
Arizona’s drug overdose death rate reached a record high in 2025, nearly doubling the national average, according to federal health data. The state’s rising death rate stands in contrast to a broader national trend, with overdose fatalities continuing to decline across much of the United States, according to a recent investigation by The New York Times.
The CDC reported an estimated 69,973 drug overdose deaths nationwide in 2025, a nearly 14% decrease from 81,313 in 2024.
While most states experienced declines, Arizona was among three states, alongside New Mexico and Colorado, that recorded increases of at least 10% during the same period.
According to a New York Times investigation, Arizona’s overdose death rate climbed to 43.5 deaths per 100,000 residents in 2025, compared to the national average of 22.1 per 100,000.
The state also surpassed West Virginia, historically considered a center of the opioid epidemic, in overdose deaths per capita for the first time since the proliferation of prescription painkillers in the late 1990s.
Arizona and neighboring New Mexico recorded the highest overdose death rates in the contiguous United States in 2025, with Arizona identified as the only state where drug deaths have remained above their post-pandemic peak.
The increase has been particularly significant in Maricopa County, where fatal drug overdoses reportedly reached a record 2,406 in 2025, up approximately 16% from 2,069 deaths in 2024, according to county public health data.
Researchers and public health officials have identified several potential contributing factors, including changes in the illicit fentanyl supply, widespread methamphetamine use, and extreme summer temperatures.
According to The New York Times, Arizona’s illicit opioid market has shifted in recent years from predominantly counterfeit prescription pills, to powdered fentanyl.
The transition occurred earlier in much of the country but has become increasingly prevalent in Arizona and New Mexico over the past two years.
Powdered fentanyl presents additional overdose risks because its potency can vary significantly between samples, making it difficult for users to determine the amount of the drug they are consuming.
Brian Clark, associate Chief of operations for the Drug Enforcement Administration’s Pacific and Southwest region, told The New York Times that the Sinaloa and Jalisco New Generation cartels remain the primary suppliers of fentanyl entering the United States through the southern border, although the reasons behind the regional shift from counterfeit pills to powder remain unclear.
The changing drug supply has also coincided with widespread methamphetamine use.
Arizona State University professor Raminta Daniulaityte estimated that approximately 80% to 90% of fentanyl users in the region also use meth, according to The New York Times.
Extreme heat may further compound these risks, particularly in the Phoenix metro, where summer temperatures frequently exceed 110 degrees.
A New York Timesanalysis of Maricopa County medical examiner records from 2024 through March 2026 found that drug deaths where approximately 40% higher on days when Phoenix temperatures exceeded 110 degrees.
On days when temperatures reached 115 degrees, drug deaths were nearly twice as high.
Methamphetamine can elevate heart rate and body temperature, increasing the risk of serious medical complications during prolonged exposure to extreme heat.
According to a Maricopa County heat mortality report, 55% of heat-related deaths in 2025 involved substance use, highlighting the overlap between drug use and extreme temperatures.
Despite the record number of fatalities in 2025, preliminary figures suggest overdose deaths may be beginning to decline in Arizona.
According the The New York Times, data from the Phoenix Substance Use and Overdose Dashboard showed reports of nonfatal overdoses through June 2026 were 17% lower than during the same period in 2025.
Additionally, preliminary Maricopa County medical examiner data indicated that drug-related deaths through March 2026 were below the previous year’s levels.
However, overdose deaths can take several months to investigate and classify, meaning the full extent of Arizona’s 2026 overdose trends remain uncertain.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
