PHOENIX - The criminal investigation into Maricopa County Supervisor Don Stapley has been handed over to prosecutors from the Maricopa County Attorney's Office, ABC15 has learned.
Stapley was arrested Monday by the Maricopa County Sheriff's Office on 93 felonies and 7 misdemeanors charges.
The charges stem from monies that were allegedly transferred back and forth between several campaign accounts and personal accounts.
Sources inside the County Attorney's office tell ABC15 that a cursory review of the investigation reveals there may be merit to the case.
"We will be discussing this matter with the Yavapai County Attorney to determine the prosecuting agency. No decision has been made regarding formal charges," said County Attorney Spokesperson Michael Scerbo
State law requires a prosecuting agency to file formal charges within 48 hours of an arrest.
Speaking to ABC15 under the condition of anonymity, a source inside the Maricopa County Attorney's Office said it is highly unlikely that any paperwork will be filed within that time frame. That source said this is not uncommon.
The deadline to file Stapley's paperwork expired early Wednesday. That means charges against him may temporarily be dismissed while prosecutors investigate further and decide if charges will be formally filed.
Stapley's lawyer, Paul Charlton, called his client's arrest "better fitted for a third-world dictatorship."
"It's a political ploy," said Charlton. "It's abuse of the system. It's wrong to proceed in this fashion."
Sheriff Joe Arpaio said the arrest was tied to an eight-month-long investigation by his deputies into Stapley’s business and campaign accounts.
"We do our job, we don't involve politics," said Arpaio. "I resent those allegations from certain critics."
Supervisor Stapley allegedly used $100 from a political campaign account called “Stapley for Supervisor” to establish a separate campaign account called “Stapley for NACo” (
National Association of Counties), according to an ABC15 source.
Stapley is on the board of directors of NACo.
According to the source, Stapley then raised more than $140,000 for the NACo account. Contributors included friends, local businesses, lobbyists, investment groups and a waste management company. The source said Stapley used some of those funds to pay for personal items like furniture and high-end electronics from Bang & Olufsen.
Documents obtained by ABC15 also allege the transfers, providing the following detail:
"The Stapley for NACo bank account was opened on 9/30/2004 with a $100 transfer from Donald Stapley’s 'Stapley for Supervisor' account. Approximately $140,000 in solicited donations was deposited into the NACo account between 9/30/2004 and 10/31/2008."
The documents show dozens of contributors to the NACo account were interviewed by investigators. One contributor told investigators she "donated with the belief the monies would be used to fund his campaign."
The contributor also told investigators, "if she found the monies had been used for something other than the campaign, she would not contribute again."
The source tells ABC15 the most serious charges against Stapley apparently stem from a loan he took out.
According to the source, financial records reveal Supervisor Stapley transferred tens of thousands of dollars from the NACo account to a personal account so he could qualify for a loan.
After qualifying for the loan, Stapley allegedly transferred that money back to his Stapley for NACo account.
Documents obtained by ABC15 also reveal the following information:
“Bank records show that Stapley wrote checks of approximately $47,000 on the NACo account, paid more than 30 credit card statements for a Bank of America credit card from the account totaling approximately $86,000, one credit card statement for a Chase credit card of approximately $37,000 and transferred approximately $97,000 to other accounts owned by Stapley and/or his business entities.”
“There was a total of approximately $97,000 in transfers to other bank accounts owned by Stapley and/or his entities. The largest transfer was for $60,000 which was made to Stapley’s personal checking account on 6/7/05. This $60,000 was transferred back to the Stapley for NACo account on 6/13/05.”
“It appears that Stapley transferred these (and other funds from other accounts, including his political contribution account) to his personal account to ensure that there were adequate funds in his account to cover a check for $121,000.”
“An additional transfer for $20,000 was made to Stapley’s personal checking account on 2/2/05. It appears that these funds were used to make a partial payment on the Bank One/Chase credit card on 3/1/05.”A 118-count indictment handed up in December charged Stapley with failing to disclose involvement in a wide variety of land deals, business associations and business assets.
A judge threw out 52 of the counts in August. The Yavapai County prosecutor overseeing the case asked a judge to drop the 66 remaining charges on Friday while he appealed the earlier ruling.
Charlton says the timing of Stapley's arrest on Monday, just three days after the motion to dismiss the original charges, no coincidence.
"This is nothing more than an attempt to embarass Mr. Stapley," said Charlton. "It's pure vindictiveness and it's wrong."
The original charges all stem form Supervisor Stapley’s alleged failure to disclose his financial interests to the public. The charges were dropped because the Maricopa County Board of Supervisors allegedly failed to adopt new disclosure requirements that were set by the State of Arizona.
Back in 1994, state lawmakers required all counties amend their financial disclosure requirements. Since Maricopa County failed to do so, the judge was forced to drop the charges having to do with Stapley’s alleged failure to disclose all his financial investments.
“It’s unjust and improper for this criminal defendant to be able to claim that, as a member of the board of supervisors, he failed to properly pass or amend the very law’s he’s accused of violating,” said Maricopa County Attorney Andrew Thomas.
In a statement posted on the County Attorney’s website, Thomas went on to say, “It’s equally wrong that the people of Maricopa County have just been told they’re the only citizens of Arizona whose elected county officials don’t have to disclose their private business dealings to the voters.”
Arpaio defended his investigators and their decision to arrest Stapley on Monday for a second time.
"We don't manufacture complaints and allegations," said Arpaio. "We're not going to stop doing our job because somebody calls the investigation political."
