Paul Petersen pleads guilty to Arizona charges in adoption fraud scheme
PHOENIX (KYMA, KECY)-Former Maricopa County Assessor Paul Petersen pleads guilty to Arizona charges on Thursday in an adoption fraud scheme.
Petersen pled guilty to Fraudulent Schemes and Artifices, a Class 2 Felony Fraudulent Schemes and Practices, a Class 5 Felony Forgery, a Class 4 Felony Fraudulent Schemes and Practices, a Class 5 Felony.
“While Paul Petersen enjoyed a position of respect and trust in the community, he manipulated adoptive families and bilked Arizona taxpayers for his own profit,” said Attorney General Mark Brnovich. “Mr. Petersen must now answer for his crimes. It doesn’t matter if you’re politically connected, wealthy, or an elected official, the rule of law applies equally to everyone.”
As part of his deal agreement, Petersen between 3 to 12.5 years in the Arizona Department of Corrections in his first case and .5 to 4 years in prison for the second case. In the agreement, Petersen is expected to pay fines of up to $650,000.
Petersen was arrested in October 2019 in connection of running an adoption agency out of Mesa.
According to the Arizona General's Attorney Office, Petersen charged adoptive families on average $35,000 per adoption and claimed the money could be used for various expenses like legal, medical, and living.
Reports show Petersen directed his co-conspirator, Lynwood Jennet, and the birth mothers to provide false information about their residency status to obtain medical services from the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid system.
Following the October 2019 indictment, the attorney's office opened a second criminal investigation against Petersen. Petersen had provided false information regarding birth mothers’ fees to prospective adoptive parents and to the Maricopa County Superior Court Juvenile Division.
In December 2019, Petersen’s co-defendant Lynwood Jennet pleaded guilty for her involvement in the adoption fraud scheme. As part of her plea agreement, Jennet agreed to testify against Petersen. Jennet faces between 2 to 4 years in the Arizona Department of Corrections.
