Lobbyist declares innocence in federal case

Lobbyist Jim Norton’s attorney said Friday federal charges against him hinge on the allegations of an “unindicted co-conspirator,” whose motivations will become “transparent” when the mystery person’s identity is revealed.

In a written statement issued Friday in response to a 17-count federal indictment, Norton said he is innocent of the allegations made following an investigation involving his fellow defendants, former Corporation Commissioner Gary Pierce, his wife Sherry Ann Pierce and George Johnson of Johnson Utilities. They each face charges of felony conspiracy, bribery, mail fraud and five counts of wire fraud.

Norton’s attorney, former federal prosecutor Ivan Mathew, said the indictment is simply an allegation at this point.

“The motivation behind these allegations will become transparent when the identity of the ‘unindicted co-conspirator’ is revealed,” Mathew said.

The case against Norton and his co-defendants was brought in the U.S. District Court on May 23.

Norton, a longtime Capitol lobbyist who was lobbying for Johnson’s interests, allegedly directed the consulting firm through which Pierce and his wife received $31,500 from Johnson. In exchange, according to the indictment, Johnson received Pierce’s “favorable and unlawful actions on matters before the ACC.”

The firm was allegedly established by an unnamed person, under Norton’s instructions, along with a checking account to receive about $6,000 a month, plus expenses. An unnamed, unindicted co-conspirator then paid Sherry Pierce $3,500, and she received those payments for 10 months in 2011 and 2012, according to the indictment.

Federal prosecutors alleged the arrangement was meant to conceal the funds’ original source.

The indictment also alleged Norton and Gary Pierce had the opportunity to purchase land valued at $350,000 with funds from Johnson. An email from Pierce to Norton in December 2011 shows an opening bid of $300,000 and a letter of intent to purchase it, from which Pierce wanted his name removed so that Norton would be the sole buyer.

According to the charges, the defendants knowingly concealed the “true nature and purpose of the payment,” ultimately totaling $31,500 and potential property valued at $350,000.

The scheme was designed to “defraud and deprive the ACC, the customers of Johnson Utilities LLC and the citizens of the State of Arizona of their right to the honest services of elected members of the ACC through concealment of material information and bribery” in exchange for Pierce’s favor.

Johnson is a wealthy developer with several projects in Arizona, including housing developments and golf courses.

He also owns a water company that supplies water and provides sewer service to thousands of homes in eastern Phoenix suburbs, many in his developments. The community in San Tan Valley known as Johnson Ranch has several thousand residents, a golf course and an elementary school.

The utility has run afoul of environmental regulators on several occasions after residents made complaints about raw sewage and filthy water. As the owner of the utility company, he has had to seek approval from the Corporation Commission to raise rates for customers.

An arraignment is scheduled for June 7.

The Associated Press contributed to this article