A Mesa, Arizona, man pled guilty to running an illegal adoption ring that involved three states and two countries. Paul Petersen is a former Maricopa County Assessor who was charged with running an illegal adoption ring through his Mesa law office.

Investigators looking into Petersen's criminal activity alleged that along with violating the Compact of Free Association, Petersen broke several laws, including human smuggling, racketeering, and Medicaid fraud.

How Petersen's Illegal Adoption Ring Worked

Petersen's illegal child adoption ring took advantage of pregnant women in the Republic of the Marshall Island who were looking to give up their children for adoption.

The prosecuting team noted that the attorney became tied up in the adoption scheme when his office predominantly took in women from the Marshall Islands. Women in the Marshall Islands who wanted to place their child up for adoption would get in touch with a “fixer.” These fixers would put the women in contact with Petersen, at which point an agreement was made, and money and a passport would be arranged for the expectant mothers so that they could arrive in the United States.

Once the women arrived in the U.S., Petersen would set them up in an Arizona, Utah, or Arkansas home in which Petersen rented or owned. Each woman also received a $1,000 stipend. Once acclimated, Petersen and his employees would arrange for the women to apply for and receive Medicaid. This way, they would be covered for the cost of the child's birth.

In the process of obtaining Medicaid for the Marshallese women, Petersen and his colleagues would falsify records, especially regarding the residency status of the pregnant women. Marshallese citizens must live in the U.S. for at least five years to be eligible for Medicaid.

Once the baby was born, Petersen would give the Marshallese women “postpartum money.” A flight was also arranged for the women so that they could go back to the Marshall Islands or another part of the United States.

While the pregnant women were in the states, Petersen worked on arranging adoption proceedings for prospective parents. Parents who were looking to adopt would usually pay Petersen an average of $40,000.

Judge’s Harsh Response

U.S. District Judge Timothy L. Brooks handed down sentencing of six years behind federal bars with three years of supervised release for his crimes in Arkansas as part of a plea agreement. The court has also ordered Petersen to pay court costs and fines that total up to $105,100. During his sentencing, Petersen acknowledged that he violated the Compact of Free Association. Along with bringing down a sentence, Judge Brooks responded to Petersen with harsh criticism, stating, "He subverted what should be a joyous time for everyone into a baby-selling enterprise. The conduct Mr. Petersen engaged in violates public policy. We don't sell babies. That is the public policy of the United States of America."

Brooks was also critical of Petersen’s misuse of power as a licensed attorney as he used his skills to commit fraud and other criminal charges using vulnerable women. Brooks expressed that Petersen ran the adoption scheme as "a side hustle for day job as an elected public official in Maricopa County."

During his hearing, Petersen took responsibility for some of his actions. But in a letter he wrote to the court, he addressed that he didn't always realize he was breaking the law while running his adoption scheme. Petersen reflects that now he realizes where he went wrong.

Friends and Family Come to Petersen's Defense

Petersen's family came to his defense by painting him in a more humane light. Edward Ableser, a former Arizona lawmaker and close friend of Petersen, described the disgraced attorney as a gentle and kind person.

Another friend, Lars Christensen, who has known John Petersen since kindergarten, shared that he and his wife paid the $500,000 cash bond on behalf of Petersen. They expressed that they knew his true character and described him as "the kind of person who would never intentionally hurt anyone else."

Petersen’s parents have set up an online donation form in support of their son. The website addresses that Petersen spent “20 years doing good” and "facilitated the legally approved adoptions of five hundred children into homes with parents who wanted them." It also expresses that Petersen was forced to take a plea deal and that he is wrongly accused of the charges he's facing.

Petersen Faces Sentencing in Other States

Because the illegal adoption ring took place in Arizona, Utah, and Arkansas, Petersen was leveled with additional charges in Arizona and Utah as well. Sentencing in Utah is scheduled for January 20, while sentencing in Arizona is scheduled for January 22. Petersen is facing up to 15 years behind bars in Utah and 16.5 years behind bars in Arizona.

Judge Brooks did make a recommendation that the Utah and Arizona sentences be served concurrently with the federal sentence.

In a statement that had portions addressing the Marshallese women, Petersen shared, "To any (birth mother) that felt misled, slighted, disregarded, disrespected, or even coerced, I say, 'I'm sorry'. I tried to make happy families, and in doing so, ruined my own.” Petersen has four children of his own.