Ruling gives Goddard tool to fight drug, human trafficking

Jul 02, 2008 (The Tribune - McClatchy-Tribune Information Services via COMTEX) -- WU | Quote | Chart | News | PowerRating -- The state's top prosecutor on Tuesday won his latest battle with Western Union over whether the company should be forced to hand over money its customers use to finance human or drug trafficking from Mexico.

The state can even seize cash sent from other states into Mexico, even if it never passes through Arizona, the state appeals court ruled.

The decision, Attorney General Terry Goddard said, allows investigators to aggressively go after some of the money that supports the illegal immigration and drug trades.

"This ruling vindicates our efforts to interrupt human smuggling and drug organizations that plague Arizona communities," Goddard said in a statement released by his office.

An attorney for Coloradobased Western Union, one of the largest money-transfer companies in the world, did not return a call for comment.

A three-judge panel backed Goddard unanimously, overturning a previous decision by a Maricopa County judge who said state prosecutors don't have the right to seize money in other states.

The case began in September 2006 when the state obtained a search warrant to basically force the company to put a hold on all transfers that fit a certain pattern -- transfers of $500 or more between people in the U.S. and Mexico.

The state wanted Western Union to put those funds in a special account where investigators could try to figure out if they were being used for crimes.

If so, the cash would be seized. If not, it would be sent on to its original destination.

However, lawyers for Western Union convinced a judge to block the search warrant, arguing that it was against the law.

One of the arguments the company made was that the search targeted people who weren't committing any crime at all, possibly violating their civil rights.

Goddard's office has fought the ruling ever since.

"Every effort has been made to prevent the seizure of any funds from anyone not involved in criminal activity," Goddard said in the statement.

The technique was used to seize more than $230,000 before the lower court blocked it, according to Goddard's office. Another $43,000 was stopped, but ultimately allowed to pass through.

Investigators say they used the tool to stop cartels in Mexico from receiving ransoms or smuggling fees from people in the U.S.

Oftentimes, human smugglers, known as "coyotes," will get a person being smuggled to pay a small fee up front to be brought across the border. Once in the U.S., though, the smuggler will require the person's loved ones to send a higher fee to people in Mexico before letting the person go.

While much of the smuggling trade runs through Arizona, money is sent to Mexico from people throughout the U.S., rarely reaching the state.

Tuesday's ruling allows prosecutors to go outside of Arizona to seize money being used for crimes committed inside the state.

It was unclear whether Western Union would appeal the case to the Arizona Supreme Court.

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