A federal court sentenced a Phoenix man previously convicted of a felony to 10 years in prison for stealing nearly $2.2 million in COVID-19 relief funding.
Mohammed Maio, 44, pleaded guilty to conspiracy to commit wire and bank fraud, conspiracy to commit money laundering, bank fraud, and felon in possession of a firearm.
Between May 2020 and May 2024, Maio fraudulently obtained and misused loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) relief loans, claiming the relief funds for multiple businesses without employees.
Maio’s mother, Souzan El-Sayed, and father, Abukar Maio, were also convicted for participating in the COVID fraud scheme. The trio submitted 18 PPP and EIDL applications.
Maio’s mother was associated with Magna Detail, Global Connection Plus, GEGE LLC, Reign Transportation, AFGOYE LLC, and Arcadia Adult Home Care. Maio’s father was associated with Magna Detail, Arcadia Adult Home Care, AFGOYE LLC, and Reign Transportation.
Maio associated himself with the following businesses: Magna Detail, AZ Jumpstart, AZMBK, Apyulent, MMM Consulting, and Reign Transportation.
Court documents reflect that the Maio family used the fraudulently obtained funds to purchase properties.
Maio also arranged for his mother to purchase a firearm for him in 2021, since he was a convicted felon who couldn’t purchase it for himself.
Arizona Department of Corrections records reflect that Maio served two years in prison from June 2016 to August 2018 for drug and fraud violations, and served six months in 2006 for drug and attempted weapons misconduct violations. During his two prison stints, Maio received three major infractions for threats or intimidation, fighting, and unauthorized conduct.
U.S. Attorney Timothy Courchaine said in the press release announcing Maio’s conviction that Maio exploited a system meant to provide relief to legitimate business owners during an unprecedented public health emergency.
“Maio’s actions resulted in significant financial loss to the U.S. government and exploited a program intended to provide relief to small businesses during a national crisis,” said Courchaine. “Fraud of this nature weakens the effectiveness of federal assistance programs and places an additional burden on taxpayers who ultimately bear the cost of these crimes.”
Scott Brown, acting special agent in charge of the Internal Revenue Service (IRS) CI Phoenix Field Office, said his agency is committed to finding each and every individual who defrauded the COVID-19 relief programs.
“While business owners and families were struggling during the COVID pandemic, Maio was scheming to defraud the government relief programs for personal gain,” said Brown. “This case demonstrates IRS CI’s ongoing commitment to pursuing individuals who abused these pandemic relief programs and ensuring they are held accountable.”
A.J. Gibes, special agent in charge for the ATF Phoenix Field Division, pointed out that Maio decided to take violent measures to continue his fraud scheme.
“This significant sentence is part of a multi-agency effort to hold those who took advantage of COVID-era programs accountable,” said Gibes. “Not only did Mr. Maio commit fraud against the United States government, he illegally armed himself to protect his multi-million-dollar scheme. We are proud to work with our IRS partners to bring those who would defraud the American people to justice.”
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Republican attorney general nominee and Arizona Senate President Warren Petersen is targeting Democratic incumbent Kris Mayes’ utility-regulation record in a new campaign advertisement, contrasting her votes on the Arizona Corporation Commission with his support for tax reductions in the Legislature.
The ad accuses Mayes of voting to increase utility rates six times and attributes higher gas, water, and electricity costs to her decisions.
“I’m Senate President Warren Petersen. I helped pass one of the largest tax cuts in state history, eliminating tax on tips, rent, and overtime,” Petersen says. “But my opponent voted to raise your utility rates six times.”
Petersen’s campaign also criticized Mayes’ role in establishing renewable energy surcharges during her tenure on the Arizona Corporation Commission. The commission adopted the Renewable Energy Standard and Tariff (REST) rules in November 2006, establishing renewable energy requirements and procedures for utilities to recover program costs through customer surcharges. The rules became effective in August 2007.
Mayes’ office has described her as instrumental in adopting the rules. She has defended the renewable energy standards, arguing that repealing them would threaten electricity affordability and reliability.
The commission reported in March 2026 that APS, Tucson Electric Power, and UNS Electric had collected more than $2.3 billion in REST surcharges from customers. That figure measures collections under the program and does not establish its net economic impact after accounting for benefits or avoided costs.
“While we’ve fought to make life more affordable for hardworking Arizona families, Mayes has supported higher utility rates that squeeze household budgets and punish the very people she was elected to protect,” Petersen said.
Petersen’s tax message references changes enacted at different times. The Arizona Department of Revenue states that cities stopped collecting transaction privilege tax on residential rentals beginning January 1, 2025. The change applies specifically to municipal taxes on residential rentals.
In June 2026, Gov. Katie Hobbs signed the fiscal year 2027 budget after vetoing nearly all bills sent to her desk from April 13 until May 14, including a proposed Republican budget containing over $1 billion in tax relief. The package, spearheaded by Repbulican lawmakers, incorporated full conformity with the tax cuts of the One, Big, Beautiful Bill Act and included $1.4 billion in tax cuts, with relief involving tips and overtime, a higher standard deduction, and an additional deduction for seniors.
The advertisement follows another dispute between the candidates over Mayes’ past statements about utility pricing.
Petersen recently criticized a resurfaced 2009 Arizona PBS interview in which Mayes, then chair of the Corporation Commission, discussed higher water prices as a means of reducing consumption and the energy required to pump water.
The discussion also included Mayes calling for utilities to provide conservation tools and participate in a statewide conversation about resource use. The interview did not identify a particular rate increase she approved.
Petersen’s new release also criticizes Mayes for challenging utility costs as attorney general after supporting increases during her commission service.
Petersen said affordability would remain a priority if he wins the attorney general’s office.
“As Attorney General, I will fight from day one to protect Arizona families, challenge policies that drive up costs, and help restore the financial breathing room Arizonans desperately need and deserve,” he said.
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.
