Motion to Dismiss Denied in Bribery Case Involving Arizona Utility Company and Regulator
A motion to dismiss was denied today in Tisha Castillo v. George Harry Johnson, a case alleging bribery of the former Chairman of the Arizona Corporation Commission by Johnson, the owner of Johnson Utilities. The alleged fraud scheme allowed the company to charge its customers millions of dollars in excessive rates, and then funnel the over-charges to affiliates through a series of fraudulent transfers.
The motion was filed in November 2018, and the U.S. District Court for the District of Arizona heard oral argument on May 23, 2019. The defendants are accused of violating the Racketeer Influence and Corrupt Organizations Act and the Arizona Consumer Fraud Act as well as Arizona's Uniform Fraudulent Transfer Act.