Kari Lake Challenges Katie Hobbs to Denounce Politico Claims of Election Hackers

Kari Lake Challenges Katie Hobbs to Denounce Politico Claims of Election Hackers

By Corinne Murdock |

Republican gubernatorial candidate Kari Lake challenged Democratic gubernatorial candidate Katie Hobbs to push back on a mainstream media warning of election hacking.

On Monday, the day before Election Day, Politico issued an article warning that hackers impose “real risks” to election equipment such as voting machines. They prefaced their warning with the disclosure that claims of voting machine hacks from the 2020 presidential election were invalid.

The Politico article stated that there were six potential threats to elections, five of which were related to cybersecurity: misinformation/disinformation, election office and campaign website crashers, campaign social media hijackers, voter registration database hackers, voter harassers, and wireless modem hackers. 

Only that last potential threat, the wireless modem hackers, could compromise election results by tampering with unofficial vote data, voting machine processing, or computer tallying. Politico assured readers that this type of cyberattack would be less likely to occur because it’s more difficult and time-consuming. Discovery of this type of cyberattack would only occur through paper ballot analysis and post-election audits. 

Tensions over Hobbs’ role overseeing the election as secretary of state in a highly contested race have grown over the last few weeks. Last Tuesday, Lake hired one of former President Donald Trump’s lawyers from the 2020 election lawsuits. 

As TIME reported, two former secretaries of state advised that Hobbs should grant election oversight to other officials. However, Hobbs’ office told TIME that she wouldn’t do so. 

Richard Mahoney, a Democrat, suggested that Attorney General Mark Brnovich or Maricopa County Recorder Stephen Richer assist Hobbs.

“I think it would be wise if the secretary of state seconded responsibility for ministerial oversight to either the attorney general or the Maricopa County recorder,” said Mahoney.

Ken Bennett, a Republican, suggested others within her office assume control. 

“She should recuse herself from the official acts that she would normally perform as secretary and let a deputy secretary or somebody else take care of those,” said Bennett. 

The latest polling favors Lake over Hobbs. According to FiveThirtyEight’s summary, Lake leads Hobbs by over two points. 

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Nikola In Pilot Testing With Walmart, SAIA As Founder Awaits Sentencing In Fraud Case

Nikola In Pilot Testing With Walmart, SAIA As Founder Awaits Sentencing In Fraud Case

By Terri Jo Neff |

Just weeks after its founder was convicted of federal fraud charges, Phoenix-based Nikola Corp. (NKLA) announced Third Quarter 2022 financial results showing higher than expected revenues and a narrower than expected quarterly loss.

On Thursday, Nikola Corp. reported revenues of $24.2 million, GAAP net loss per share of $0.54, and non-GAAP net loss per share of $0.28. The company also revealed it produced 75 heavy-duty Nikola Tre battery-electric vehicles (BEVs) at its plant in Coolidge, outpacing the 50 BEVs which came off the assembly line last quarter.  

Nikola also announced pilot testing of its Tre BEVs is underway with Walmart and SAIA, and that 63 of its trucks have been delivered to dealers.

“During the third quarter we continued to produce and deliver Nikola Tre BEVs to dealers and customers,” said new Nikola President, Michael Lohscheller. “We also made significant advancements in developing our energy business, announcing our intent to develop access of up to 300 metric-tons per day of hydrogen and up to 60 stations by 2026, and our collaboration with E.ON in Europe.”

Founded in late 2014 by Trevor Milton, Nikola seeks to transform the transportation industry by designing and manufacturing zero-emission BEVs  and hydrogen-powered fuel cell electric vehicles (FCEVs). The company is also a leader in EV drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure.

As AZ Free News previously reported, Milton was stripped of any role in the company in 2020 following an investigation by the U.S. Securities and Exchange Commission into allegations Milton repeatedly lied to investors, prospective investors, and the public about Nikola’s research and development progress as well as sales contracts in an effort to increase the company’s share price.

Then-CEO Mark Russell sought to move Nikola forward from the scandal, agreeing the company would pay a $125 million civil penalty to the SEC. Russell retired this summer, putting Nikola in the hands of Lohscheller, who previously served as CFO for several top automakers, including Mitsubishi Motors, Volkswagen Group USA, and German-based Opel/Vauxhall. Lohscheller was promoted in 2017 as CEO of Opel, where he helped plan the company’s move toward being an electric-only brand by the end of this decade.

Meanwhile, company officials fully cooperated with the U.S. Attorney’s Office in New York which took Milton to trial Sept. 12 on four fraud charges.  The nearly month-long trial ended with the jury deliberating for less than seven hours before convicting Milton of two counts of wire fraud and one count of securities fraud.

A not-guilty verdict was handed down on another count of securities fraud.

Milton, who avoided pretrial detention by posting a $100 million bond, was granted permission by a federal judge to remain out of custody his until Jan. 27, 2023, sentencing. He is facing up to 20 years in prison, with prosecutors calling for a “significant” prison term in light of numerous warnings to Milton about his misrepresentations.

Nikola has recently announced several highpoints, including:

  • Acquiring land in Buckeye for the construction of a hydrogen production hub with project partners. The company is working through zoning and permitting processes and has already ordered some long lead-time equipment;
  • A multi-year purchase order for 100 Tre BEVs by Zeem Solutions, which specializes in fleet truck leasing;
  • A stock-only purchase of California-based Romeo Power, which is expected to result in a large savings for Nikola on battery-pack costs;
  • An intent to develop access of up to 300 metric-tons per day of hydrogen and up to 60 dispensing stations by 2026. The company sees potential benefits from the Inflation Reduction Act.
Small Businesses Continue To Struggle To Fill Job Openings

Small Businesses Continue To Struggle To Fill Job Openings

By Terri Jo Neff |

The struggle to fill job openings continues for mom-and-pop enterprises and other small businesses across the country, according to a report issued Thursday by the National Federation of Independent Business (NFIB).

“The labor shortage remains a challenging problem for small business owners,” NFIB Chief Economist Bill Dunkelberg said of the group’s Jobs Report for October. “Because of staffing shortages, small business owners are less able to take full advantage of current sales opportunities and continue to make business adjustments to compensate,”

The Jobs Report is a monthly, national snapshot of the small-business-owning membership of NFIB in 9 industries — agriculture, construction, finance, manufacturing, professional, retail, services, transportation, and wholesale.

The October 2022 report released Nov. 3 shows that:

  • 23 percent of owners report labor quality as their top business problem, second only to inflation;
  • 61 percent of owners reported hiring—or trying to hire—in October;
  • Of those hiring or trying to hire, 90 percent of owners reported few or no qualified applicants for the open positions;
  • 40 percent of owners have openings for skilled workers while 22 percent are seeking unskilled labor;
  • Transportation (68 percent) and Construction (63 percent) had the most difficulty in October filling job openings.

There are several programs available to Arizona small businesses to assist with hiring issues. One is the Arizona Small Business Development Center Network funded in part by the U.S. Small Business Administration. There are 10 SBDC Centers in Arizona served through the local community college districts.

Another is Arizona@Work sponsored by the Arizona Commerce Authority and Arizona Department of Economic Security.

Richer Digs In While Public Awaits Decision Of Complaint To Attorney General

Richer Digs In While Public Awaits Decision Of Complaint To Attorney General

By Terri Jo Neff |

AZ Free News has confirmed at least two of Arizona’s 15 county recorders did not put forth an “aye” vote when deciding whether to oppose Proposition 309, despite public assertions by Maricopa County Recorder Stephen Richer of a unanimous vote.

Prop 309 would tighten the identification requirements for in-person and early ballot voting. On Sept. 29, the Arizona Association of County Recorders (AACR) conducted a “aye or nay” voice vote on issuing a statement in opposition of what is often referred to as universal voter ID.

Many boards and associations make decisions and take positions on a majority-rule basis, but those votes are not publicized as representing the position of each individual member. There was no role call nor record kept of how any of the county recorders voted, yet Richer, who is AACR’s President, listed the names of all 15 recorders on the anti-Prop 309 statement.

As previously reported by AZ Free News, Cochise County Recorder David Stevens took issue with that, as he was out of the country at the time and had not given his chief deputy recorder authority to vote his proxy. In fact, Stevens is pro-Prop 309.

Public records obtained by AZ Free News also show at least one other recorder reported not expressing any vote on the AACR position but opted to not go public, given that the majority of members did vote “aye.”

AACR met on Sept. 29 and took the voice vote about Prop 309 despite nothing on the agenda indicating a vote would be taken. Then on Oct. 4, Richer used his Maricopa County email account to distribute a draft version of the AACR statement to a handful of members for review.

He also used the Maricopa County website and a staffer’s time on the AACR’s anti-Prop 309 letter.

Richer has acknowledged this was an improper use of public resources to influence a ballot measure, and has expressed hope his mea culpa is sufficient to stave off criminal charges in light of a complaint filed with the Arizona Attorney General’s Office (AGO).

The AGO has the authority to expand the investigation from Richer’s use of public resources into whether his refusal to correct the record about the AACR vote falls under Arizona’s criminal statutes related to a fraudulent scheme or artifice.

Other public records show the draft version of the anti-Prop 309 statement Richer sent, however, did not include the names of all the county recorders. That feature was added at the suggestion of Pima County Recorder Gabriella Cazares-Kelly.

Richer released a revised draft statement about Prop 309 to the full AACR membership on Oct. 10. The next day, Arizona Secretary of State Katie Hobbs received an email from Richer with an advance copy of the statement about 90 minutes before it was released to the public.

Stevens, who did not see the draft, immediately emailed Richer and the other recorders upon learning of the statement’s content. He made clear his position on Prop 309 (he supports it) as well as on the use of his name.

The email also requested Richer “remove my name from this list and issue a retraction immediately.” Richer ignored that request as well as subsequent requests by Stevens.

For now, Stevens is waiting for the outcome of the AGO investigation. There is also a possibility of civil liability under Arizona law for the use of Stevens’ name without his consent.

Court Issues Restraining Order Against Ballot Drop Box Monitors

Court Issues Restraining Order Against Ballot Drop Box Monitors

By Corinne Murdock |

On Tuesday, the Arizona District Court issued a temporary restraining order against drop box monitors with Clean Elections USA. The order lasts through Election Day for fourteen days.

The court consolidated two cases against the drop box monitors: League of Women Voters of Arizona v. Lions of Liberty, et al and Arizona Alliance for Retired Americans, et al v. Clean Elections USA et al.

Judge Michel Liburdi ordered Clean Elections USA to refrain from engaging in or training, organizing, or directing others to monitor drop boxes. They may not enter within 75 feet of a ballot drop box or entrance to a building where a drop box is located, or follow individuals delivering ballots to a drop box outside that 75-foot margin. They may also not speak first to individuals dropping off ballots within 75 feet of a drop box. They may also not openly carry firearms within 250 feet of a ballot drop box, but may conceal carry. 

READ HERE: SUMMARY OF THE HEARING

Liburdi also ordered Clean Elections USA and its founder, Melody Jennings, to post the following on the organization website and her Truth Social account:

“It is not always illegal to deposit multiple ballots in a ballot drop box. It is legal to deposit the ballot of a family member, household member, or person for whom you are the caregiver. Here are the rules for ballot drop boxes by which I ask you to abide…”

Followed by a copy of state law concerning voter fraud or a link to the law, Jennings complied. Although on Wednesday, Jennings responded to Republican secretary of state candidate Mark Finchem that she and others would continue to watch drop boxes “lawfully and peacefully” as he requested.

In an interview with controversial pundit Steve Bannon, Jennings described the restraining order as an “infraction of the First Amendment.” Jennings said she would be relying on eyewitnesses to file affidavits if they see suspicious activity. 

One of the major firms representing the plaintiffs in the cases was the Elias Law Group: Russiagate lawyer Marc Elias’ firm. The Department of Justice (DOJ) also joined the case on Halloween, which was Monday. 

Those who sued to stop the drop box watchers included the League of Women Voters of Arizona, Arizona Alliance for Retired Americans, and Voto Latino.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Hobbs’ Campaign Office Burglar An Illegal Immigrant Fugitive Sought by ICE

Hobbs’ Campaign Office Burglar An Illegal Immigrant Fugitive Sought by ICE

By Corinne Murdock |

The man allegedly behind the burglary of Democratic gubernatorial candidate Katie Hobbs’ campaign office is an illegal immigrant sought by Immigrations and Customs Enforcement (ICE).

Sources informed the Arizona Daily Independent this week that the fugitive, a 36-year-old Portuguese citizen named Daniel Mota Dos Reis, failed to maintain his immigration status through a student visa. Reis earned his MBA from Grand Canyon University (GCU) last December. According to ICE records, Reis entered the country on a student visa in 2018, when he started at GCU. 

As AZ Free News reported last week, Hobbs alleged that Reis was prompted to burglarize her campaign office due to rhetoric from her opponent, Kari Lake. Reis likely wasn’t motivated by the gubernatorial race or politics at all. 

Rather, the timeline of events offered by Reis’ social media accounts indicates that he was motivated by financial distress. Reis worked as an accountant for four years until March, when it appears that he either left or lost his job. At that point, Reis began searching for other job opportunities abroad. It is unclear whether his immigration status was a factor in his job status.

In April, Reis posted to social media that it was difficult to obtain work authorization papers.

“Work authorizations and work-related paperwork can be a huge issue in the US,” stated Reis. “I see friends deeply impacted by these policies on a daily basis.”

Police relayed that Reis was homeless at the time of his arrest for several burglaries, including that of Hobbs’ campaign office.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.