Accused Arizona assessor transferred to federal custody

The Arizona State Assessor accused of running a multi-state adoption scam is now in federal custody.

Prosecutors say Paul Peterson illegally brought pregnant women to the U.S. from the Marshall islands, housed them in a property he owned, then arranged adoptions after they gave birth.

They say Peterson used Arizona Medicaid to pay the birth mothers’ medical expenses, then charged couples between $25,000 and $40,000 per adoption.

He faces charges of sale of a child, fraud, forgery, money laundering and human smuggling in Arizona, Utah, and Arkansas.

At this point it’s unclear if he will face any federal charges, although his transfer indicates he may.

Peterson’s attorney says his client engaged in ” proper business practices. ”

KYMA 2019