2 plead guilty in Arizona to defrauding ESA program

PHOENIX — Arizona Attorney General Kris Mayes on Wednesday announced that two people each pleaded guilty to felonies after being charged with working together to receive more than $110,000 in fraudulent education voucher money while living in Colorado and creating “ghost” children who didn’t exist.

Mayes said Johnny Bowers pleaded guilty to fraudulent schemes and artifices, a Class 2 felony, and forgery, a Class 4 felony, in Maricopa County Superior Court on Tuesday.

His co-defendant, Ashley Hewitt, who also goes by Ashley Hopkins, pleaded guilty to fraudulent schemes and artifices, a Class 2 felony, on Aug. 5, according to the attorney general.

The case is among several investigations the attorney general’s office has launched into Arizona’s lightly regulated Empowerment Scholarship program. It gives home and private school parents tax dollars to educate their children. The program has more than 90,000 students, and it will cost Arizona about $1 billion this school year.

The two face sentencing on Oct. 24.

“Fraud in the ESA program will not be tolerated,” Mayes said. “Those who exploit government systems for personal gain will be held accountable. My office will continue to aggressively prosecute fraud and protect taxpayer dollars.”

State Schools Chief Tom Horne, a former Arizona attorney general, referred the case to Mayes. 

Horne said his office also has collected or referred for collection more than $622,000 in improper purchases and has won 16 appeals of improper expenses such as dune buggies, golf simulators and other unallowable items.

Meanwhile, Bowers and Hewitt began working together to defraud the state just months after then-Gov. Doug Ducey and the Republican-controlled Legislature massively expanded the ESA program.

The attorney general’s office said from Dec. 4, 2022, to about May 3, 2024, the pair worked together to defraud Arizona’s ESA program by submitting forged birth certificates, forged utility bills and other documents to receive ESA funding. 

A typical ESA voucher is $7,000 to $8,000 per child a year, but special needs children can receive more than $40,000 a year.

The couple received $110,258 for their fraudulent ESA applications for more than 40 children, both real and fictitious, all while living in Colorado. They were indicted in November 2024 and charged with 60 counts of forgery and fraud. 

The Arizona Attorney General’s Office Special Investigations Section investigated the case, which was prosecuted by the Fraud and Special Prosecutions Section.

RELATED: Arizona Department of Education apologizes to ESA parents after some ‘personally identifiable information’ was given to local media, including 12News

Horne, meanwhile, has tried to crack down on extravagant, non-educational purchases by ESA parents.

But he has faced backlash from far-right Republicans and Treasurer Kimberly Yee, who also has oversight of the ESA program.

Those Republicans and Yee say they trust parents to make the right choices in educating their kids and they have sought limited oversight on what can be purchased.

Yee is running against Horne next year for state schools chief.

Horne, under pressure to approve a backlog of ESA purchases, ordered his staff since late November to allow all ESA purchases of $2,000 or less to automatically go through with plans to audit later.

A 12News investigation found ESA parents bought diamond rings and necklaces, Kenmore appliances, and even lingerie with education tax dollars. 

Parents of ESA children also purchased more than 200 Apple iPhones, more than 50 smart TVs, and dozens of gift cards worth up to $500 each.

Mayes told 12News her staff plans to crack down on what she called an ESA “scandal.”

Horne, however, said his agency has not received any support from the attorney general’s office on many fraud cases, and he’s confident his staff will catch ESA parents who have abused the system through risk-based auditing.

“Risk-based auditing is a common practice in many federal and state agencies and is dictated by state law,” Horne said. “Without this program, reimbursements for expenditures would take over two months, putting a terrible burden on parents who have paid money and are entitled to reimbursements.”

Horne added the Department of Education has the same number of people (12) authorized to review purchases as it had when it had one-tenth of the participants in the ESA program. 

RELATED: I-TEAM: ESA parents bought diamond rings, lingerie, and Kenmore appliances with education tax dollars