Tuesday, June 22, 2010

Thomas Seeks Goddard Action v. Tom Horne Fraud, Bankruptcy State Law Violation

Thomas Asks Goddard To Investigate Tom Horne’s Apparent Illegal Conduct In Arizona

Horne Should Release Additional Documents Surrounding Potential Fraud

PHOENIX, AZ. JUNE 21, 2010. Former Maricopa County Attorney and candidate for Attorney General Andrew Thomas demanded answers today from his Republican opponent, Tom Horne, following reported revelations Horne repeatedly failed to disclose a past bankruptcy in numerous official corporate filings with the State of Arizona—an apparent violation of state law. The bankruptcy was part of circumstances surrounding Horne’s lifetime ban from the Securities and Exchange Commission for financial fraud.

Thomas publicly called upon Attorney General Terry Goddard to appoint a special prosecutor to determine whether Horne violated state law in failing to disclose the bankruptcy in annual reports filed by Horne’s law firm with the Arizona Corporation Commission. And Thomas demanded that Horne authorize release of his application to become an attorney with the State Bar, as well as his application to work in the Arizona Attorney General’s Office previously. If Horne withheld information about his bankruptcy, Horne may have been authorized to practice law in Arizona under false pretenses and may lack bona fide credentials to continue to practice here.

Today, the Arizona Republic reported that from 1997 to 2000, Horne failed to disclose a past bankruptcy in official documents which he filed with the Arizona Corporation Commission and signed on behalf of his law firm. The article reported an investment firm started by Horne declared bankruptcy and Horne’s practices “led to him receiving a lifetime trading ban from the Securities and Exchange Commission.”

The Arizona Republic story did not include another Horne filing in 2002 in which he again failed to disclose his bankruptcy despite state law requiring so.

Horne was sanctioned by the SEC after he “attempted to induce the purchase and sale of securities when it did not have the required net capital.” Horne agreed to an SEC finding that he and his firm “willfully aided and abetted” in violations of federal securities laws. Horne subsequently relocated to Arizona. He has given, and continues, to give, inconsistent accounts of what transpired.

It is a violation of state law to file false annual reports with the Arizona Corporation Commission. And if Horne withheld information about his bankruptcy from his character and fitness application to the State Bar, he might have been admitted to the Arizona Bar under false pretenses.

Thomas noted Horne gave laughable responses to the Arizona Republic reporter. Horne blamed an accountant for the SEC-related problems, but said he could not remember the name of the accountant.

“The public deserves answers now,” Thomas said. “Tom Horne has admitted to willfully aiding and abetting in violations of federal securities laws. Now, it appears he violated state laws as well by not disclosing his bankruptcy in his law firm’s disclosure reports.”

He concluded, “Tom Horne has been accused of manipulating AIMS test scores by the Bush administration, which called his practices a ‘complete sham.’ He himself admitted to aiding and abetting violations of federal securities laws. Now he’s been caught apparently violating state law in not disclosing these facts here in Arizona. Can Tom Horne be trusted at all? He was a financial con artist before and is trying to be a political con artist today, attempting to fool primary voters he is a conservative when in fact he’s been a liberal on everything from amnesty to taxpayer funded abortions.”

Jason Rose
Rose & Allyn Public Relations

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