After jolt from indictments, APS cuts ties with lobbying firm

Yvonne Wingett Sanchez | The Republic | azcentral.com

Show Caption Hide Caption Utility owner, lobbyist, ex-regulator and wife indicted in fraud case Former Arizona Corporation Commission Chairman Gary Pierce and Johnson Utilities owner George Johnson were indicted on charges of bribery and conspiracy.

Arizona Public Service Co. has powered off its relationship with a prominent consulting firm after one of its top lobbyists was indicted in federal court for his alleged part in what federal prosecutors say was a bribery scheme.

Since the indictments, Jim Norton has stepped away from the firm to try to stem the flow of clients ending their business with Axiom Public Affairs. Norton has pleaded not guilty.

But that didn't stop APS from bailing, too: Secretary of State records show the utility company terminated the relationship on Tuesday.

"I can confirm that Axiom no longer represents APS," company spokeswoman Anna Haberlein Stewart wrote in a statement Thursday to The Arizona Republic. She would not say why the company ended the relationship.

Loss of another plum lobbying client is an additional blow for the firm.

Federal prosecutors accuse Norton of being "a conduit" for bribes that they allege water-company owner George Johnson paid to former Arizona Corporation Commission Chairman Gary Pierce and his wife, Sherry Ann Pierce. Authorities say the money helped secure commission approval of higher rates for Johnson Utilities in the East Valley and Pinal County.

All four were indicted and all have pleaded not guilty.

Last year, FBI special agents were investigating issues with the Arizona Corporation Commission and the 2014 elections. They were talking to potential witnesses, including those involved in so-called "dark-money" groups that ran political campaigns that election cycle.

Gary Pierce was visited by two FBI special agents and Pinnacle West Capital Corp., which owns APS, has also been contacted by the federal prosecutors.

FBI special agent Matthew Reinsmoen confirmed the investigation last year, saying, "The FBI is currently conducting a long-term investigation related to the financing of certain statewide races in the 2014 election cycle."

It is unknown if that investigation was tied to the federal indictments.

Includes reporting from Republic reporter Ryan Randazzo. Follow the reporter on Twitter and Facebook. Reach her at yvonne.wingett@arizonarepublic.com or 602-444-4712.

READ MORE:

What happens when one of your financial backers is indicted?

Former Arizona official, 3 others enter pleas on fraud, bribery charges

Utility owner, ex-regulator, lobbyist indicted on bribery, fraud charges