Three members of a Phoenix family have pleaded guilty in connection with a years-long scheme to fraudulently obtain nearly $2.2 million in federal COVID-19 relief funds, according to the U.S Attorney’s Office, District of Arizona.
Mohammed Maio, 43, of Phoenix pleaded guilty in July to conspiracy to commit wire and bank fraud and conspiracy to commit money laundering.
His parents, Souzan El-Sayed, 66, and Abukar Maio, 70, also of Phoenix pleaded guilty on July 24 to conspiracy to commit wire and bank fraud and conspiracy to commit money laundering.
Mohammed Maio is scheduled to be sentenced on September 28, 2026, before U.S. District Judge Michael T. Liburdi.
El-Sayed and Abukar Maio are scheduled for sentencing on October 5, 2026, before the same judge.
According to a press release, the three family members conspired between May 2020 and March 2024 to fraudulently obtain and misuse loans issued through the federal Paycheck Protection Program and Economic Injury Disaster Loan programs, both which were established to provide financial relief to businesses impacted by the COVID-19 pandemic.
Prosecutors said the family submitted false information to secure nearly $2.2 million on loans for multiple businesses that had no employees. Rather than using the funds for legitimate business purposes the defendants admitted they used the money for personal gain, including the purchase of multiple properties.
In addition to the fraud charges, Mohammad Maio admitted to illegally obtaining a firearm despite being a convicted felon. He pleaded guilty to a felon in possession of a firearm and aiding another in making a materially false statement to purchase a firearm.
According to his plea agreement, he arranged for this mother to purchase the firearm on his behalf in May 2021. He admitted the he directed her to falsely certify on the federal firearms transaction record that the gun was being purchased for her own use when it was actually intended for him. He later unlawfully possessed the firearm.
The conspiracy to commit wire and bank fraud charge carries a maximum sentence for 30 years in federal prison and a fine of up to $1 million.
The conspiracy to commit money laundering charge carries a maximum of 20 years in prison and a $500,000 fine.
The felon in possession of a firearm charge is punishable by up to 10 years in prison and a $250,000 fine, while making a false statement during the purchase of a firearms carries a maximum sentence of five years and a $250,000 fine.
Actual sentences will be determined by the court.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
Arizona now enjoys nearly $7.4 billion in total assets, representing a 126% increase since Treasurer Kimberly Yee took office in 2019.
Per the latest local government investment report from the treasurer’s office, total June earnings among the four local government investment pools (LGIP) exceeded $22.8 million. Per the treasurer’s office, each LGIP is a fixed-income investment pool with multiple governmental entity contributors.
Pool 5 investment fund earnings exceeded $10.5 million; Pool 7 earnings exceeded $9 million; Pool 500 earnings exceeded $2.5 million; and Pool 700 earnings exceeded $686,000.
Arizona Treasurer Kimberly Yee reported at the State Board of Investment meeting that the Local Government Investment Pool reached $7.4 billion in total assets. This is an increase of 126% since @AZTreasurerYee took office.
— Office of the Arizona State Treasurer (@AZTreasury) July 30, 2026
The treasurer’s office accomplished a record $7.6 billion in total assets last fall. The state’s Permanent Land Endowment Trust Fund has also hit record highs under the Yee administration.
Recently, Yee secured the Republican nomination over incumbent Tom Horne in the race for Arizona Superintendent of Public Instruction.
She has positioned herself as a defender of parental privacy rights when it comes to school choice funds. The treasurer remained in a lawsuit filed by a media outlet seeking records not kept by the treasurer’s office which contained sensitive student and family information, some of which were educational, medical, or financial in nature.
Earlier this month, Yee prevailed in that case in the Maricopa County Superior Court.
“We will continue to provide transparency regarding records in our custody, consistent with our statutory duties, while safeguarding confidential information entrusted to the state,” stated Yee at the time.
Today, we won our case against 12 News and Craig Harris to prioritize the privacy of Arizona children and ESA families. This case has been about protecting the privacy of Arizona's children and their families.
Yee also partnered with the State Financial Officers Foundation this year to produce a report on fraud and mismanagement of federal education tax dollars within state education departments and school districts. The report described oversight of public funding within education as more than bureaucratic duty, but “an economic and moral imperative” given the growing affordability crisis facing families.
The collaborative report including Yee’s contributions relied on more than six years’ worth of semiannual reports to Congress by the U.S. Department of Education Office of Inspector General (OIG), which yielded approximately 90 instances of confirmed and prosecuted fraud and abuse.
Arizona was not included in the report highlights. However, one Arizona case was within the cited OIG data, concerning the Bradley Academy of Excellence enrollment fraud scheme that resulted in the theft of $2.5 million.
I am honored to partner with @SFOF_States in addressing national education issues related to fraud and mismanagement. My office is dedicated to protecting taxpayers and promoting fiscal responsibility and transparency for Arizona families.⁰ Full report: https://t.co/UZWaeiinJEpic.twitter.com/vo60SfRo8H
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) July 16, 2026
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Congressman Paul Gosar (R-AZ-09) is calling on the Department of Veterans Affairs (VA) to implement recommendations from a recent Office of Inspector General (OIG) audit that found widespread failures in the administration of the Veterans Community Care Program (VCCP), including improper eligibility determinations, inadequate documentation, and hundreds of millions of dollars in unnecessary spending.
In a letter to VA Secretary Doug Collins and Acting Under Secretary John Figueroa, Gosar urged the department to fully implement the OIG’s recommendations to improve accountability and ensure veterans receive the care they are entitled to under federal law.
The audit, released by the VA Office of Inspector General on June 17, was mandated by the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act.
It examined whether the Veterans Health Administration (VHA) accurately identified veterans eligible for community care and properly informed them of their options under the VA MISSION Act.
The OIG concluded that the VA was “not effectively identifying and informing all eligible veterans about all their care options within and outside VA.”
Investigators found that some veterans who qualified for community care were never informed of their eligibility, while others who did not qualify were improperly referred to outside providers.
According to the audit, nearly one in four community care referrals—approximately 340,000 of 1.4 million consults reviewed during the first quarter of FY25—were made even though veterans did not meet eligibility requirements.
At the same time, an estimated 1.8 million veterans who received care through VA facilities lacked documentation showing they had been evaluated for community care eligibility, with more than one million cases containing no evidence that veterans had voluntarily declined the option.
The OIG estimated that inaccurate eligibility determinations resulted in approximately $440 million in unnecessary spending during the first quarter of FY25 alone. If those issues continue unaddressed, the agency estimated the cost could reach $1.7 billion annually.
The audit attributed many of the problems to inconsistent guidance from the VA’s Office of Integrated Veteran Care, scheduling system limitations that prevented staff from viewing appointment availability across all VA facilities, and a lack of access to community care scheduling data needed to help veterans make informed decisions.
Investigators also found that some veterans referred to community care could have received treatment sooner through VA facilities, while others who qualified for community care were never informed of that option.
The report warned that these shortcomings not only waste taxpayer dollars but also risk delaying medical treatment for veterans by preventing them from accessing the care options that best meet their needs.
The Office of Inspector General issued six recommendations aimed at improving the effectiveness of the Veterans Community Care Program.
The Veterans Health Administration concurred with five recommendations and concurred in principle with the sixth, submitting corrective action plans intended to address the findings.
In his letter, Gosar encouraged Secretary Collins to work with Congress to fully implement the OIG’s recommendations, strengthen oversight of the Veterans Community Care Program, and ensure it is administered with the diligence and integrity America’s veterans deserve.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
Voters will not be seeing a debate occur in the Arizona governor’s race between Gov. Katie Hobbs and Rep. Andy Biggs.
Hobbs announced formally on Tuesday that she wouldn’t be debating Biggs, though many speculated for months beforehand that would be the case regardless of who won the Republican primary.
The Democratic governor even stonewalled reporters for days after the primary before finally opening up to 12News reporters Brahm Resnik and Craig Harris on the subject.
Hobbs’ campaign manager Nicole DeMont told the outlet that the governor doesn’t find debates important.
DeMont said Hobbs’ time was better spent convincing constituents of her work through a statewide “Arizona First” tour with more than 100 open-press events and interviews.
“We respectfully decline debate invitations in this campaign because face-to-face engagement with Arizonans is more effective than a stage designed for short soundbites and political theater,” said DeMont.
DeMont’s statement confirmed what Hobbs appeared to indicate in media interviews in recent years: that she doesn’t believe debates hold much value with voters anymore.
Some have expressed concern that Hobbs engaging voters unchecked by opponents serves as a calculated echo chamber. They pointed to claims made in a recent Hobbs campaign ad, which were later characterized across the political spectrum as misleading or false.
The governor claimed in the ad to have reduced electricity bills, though utility rates have increased; cut red tape to build more affordable housing, though her administration imposed a housing moratorium that may cost taxpayers millions; and balanced the budget, though the multibillion-dollar surplus flipped into a deficit under her and it was the Republican-led legislature that convinced Hobbs to sign on after months of stalling and a legislative moratorium.
It will have been 8 years since Hobbs engaged in a debate.
In the past, the governor had fled from reporters when pressed on her willingness to debate opponents, and once claimed to have COVID-19 when expected to appear for a debate.
Although Hobbs won’t show, Biggs does plan to appear on the stage for the Clean Elections Debate in October. Drew Sexton, Biggs’ campaign senior advisor, said Hobbs’ continued rejection of debates was less about principle and more about fear of confrontation.
Sexton also said that Hobbs’ avoidance indicated moral failings that would explain the multiple rejections by lieutenant governor picks and the years-long criminal corruption investigation. Sources told The New York Times that both Jimmy McCain, John McCain’s son, and John Giles, former Mesa mayor and Republicans for Harris leader, turned Hobbs down for the role.
“The independent and persuadable voters up for grabs in Arizona deserve to hear from statewide candidates in a traditional debate setting, one that was held in every Arizona gubernatorial race since 1954 until Katie Hobbs ran for the position in 2022,” said Sexton. “Katie Hobbs can avoid the debate stage but she won’t get to avoid voters in November.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
The federal government expects Arizona to do more to conserve its water in the ongoing Colorado River supply crisis while other basin states face far lower restrictions.
Arizona’s elected leaders responded that the state has done more than its fair share to conserve water throughout this historic multi-decade drought, and that they would not accept this federal directive. They indicated that they may challenge the directive in court.
The Final Environmental Impact Statement on Colorado River operations, released by the Bureau of Reclamation on Friday, would require Arizonans to cut water usage by up to 77% in 2027 and 2028.
Arizona, California, and Nevada had proposed water usage reductions that would have reduced Arizona’s supply by about 31%, but the federal government rejected that proposal.
The Arizona Department of Water Resources (ADWR) said the federal decision would “devastate” Arizonans and the state’s economy. ADWR criticized the federal framework for not including reductions to the Upper Basin or sufficient use of water in those upper reservoirs.
The Colorado River Basin provides drinking water and power for more than 40 million people, and irrigation water for more than five million acres of agricultural land. A 26-year drought has reduced the basin to historically low runoff and reservoir levels.
Arizona, California, and Nevada rely on water from the Lower Basin, while Colorado, Utah, Wyoming, and New Mexico rely on the Upper Basin.
Gov. Katie Hobbs expressed hope that the Department of the Interior (DOI) would still accept the Lower Basin alternative plan, but acknowledged the federal restrictions contained “unacceptable options” that included having Arizona take on the majority of water cutbacks, which Hobbs called “draconian.”
As Rep. Andy Biggs (AZ-05), Republican nominee for governor, mentioned in his appeal to Congress for Colorado River emergency funding, Hobbs cited Arizona’s unique position as a power player in the agricultural and defense industries.
“Arizona provides the agricultural produce, critical minerals, weapons defense systems and cutting-edge semiconductors that feed America, protect America and fuel America’s high-tech economy. No other state in the Colorado River basin can say the same,” said Hobbs.
The DOI has been unsuccessful in its attempts the past six years to reach consensus with Arizona and the six other basin states concerning long-term operational guidelines. The lack of consensus didn’t stop the federal release of the environmental impact statement, since current operational guidelines expire this year and the government must begin new operations on October 1 of this year.
Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry, condemned the DOI decision as placing a “deeply disproportionate burden on Arizona” while failing to provide a cohesive conservation solution for all basin states. Seiden said they would stand alongside state leaders to demand a fairer decision.
“[A] plan that imposes severe, enforceable reductions on Arizona while shielding senior users and allowing other states to avoid comparable mandatory commitments is neither fair nor sustainable,” said Seiden. “Arizona will do its part, as it always has, but we will not accept being treated as the system’s default shock absorber. Any sustainable path forward must recognize Arizona’s conservation record, protect the investments our state has already made, and require measurable contributions from the entire Colorado River Basin.”
Rep. Teresa Martinez, an LD16 Republican whose constituents also hail from Pinal and Pima counties, questioned who in Arizona would be expected to cut water usage, and who would be given the better end of the deal.
Martinez said the federal government is forcing communities and farmers to bail out those beginning to feel the effects of the water crisis.
“Pinal County farmers already lost their Colorado River water. That happened years ago. They took the hit without a bailout, without fanfare, and without much sympathy from anybody,” said Martinez. “Rural Arizona cannot keep being treated like the first place to cut and the last place anyone thinks about.”
Martinez said she plans to speak with LD16 community leaders, especially those within the agriculture industry, to gauge the anticipated impact of this latest decision.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
The Common Sense Institute announced it has promoted Zach Milne to Director of Policy and Research, where he will oversee the organization’s research agenda and continue leading data-driven policy analysis focused on free enterprise and economic issues affecting Arizona.
In his new role, Milne will direct CSI’s research initiatives while continuing to produce analysis intended to inform policymakers and the public on issues related to Arizona’s economy, workforce, fiscal policy, and competitiveness.
Milne joined the Common Sense Institute after serving as an economist in the Arizona Governors Office of Strategic Planning ad Budget.
During his time with the state, he developed Arizona’s revenue forecasts, advised executive leadership on fiscal policy, and analyzed tax and budget legislation.
He earned a bachelors degree in economics and statistics, along with a master’s degree in economics from Arizona State University.
Prior to his career in economics, Milne served more than 20 years in the United States Air Force.
Please join us in congratulating Zach Milne on his promotion to Director of Policy and Research at Common Sense Institute.
As Senior Research Analyst, Zach has played a key role in establishing CSI as a trusted source of independent economic analysis through his work on housing… pic.twitter.com/LEQTq8fUYF
— Common Sense Institute Arizona (@CSInstituteAZ) July 30, 2026
Since joining CSI, Milne has helped expand the organization’s research portfolio, leading several of its signature projects, including the Free Enterprise Report and the Housing Affordability Index.
CSI Executive Director Katie Ratlief praised Milne’s contributions to the organization and expressed confidence in his leadership moving forward.
“Research that makes a difference doesn’t just analyze data. It changes the way people think about important policy issues,” stated Ratlief. “Zach has been instrumental in building both the quality of our research and the reputation CSI has earned as a trusted source of objective economic analysis. His commitment to accuracy and thoughtful approach to every project have helped position CSI as a leading voice on the policy issues that matter most to Arizonans. I look forward to seeing him continue building on that foundation in this new role.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
