Arizona Republic from Phoenix, Arizona • Page 11

THE ARIZONA REPUBLIC SATURDAY JANUARY 27, 1996 Steve Knickmiyat-271-8222 DPS reports minor violations in assault-rifle purchases iy William Hermann ind Abraham Kwok itaff writers The assault-rifle purchase scandal that ocked the Phoenix Police Department in December has spread, with diminished 0 the Arizona Department of Public Safety. A report that DPS released Friday included that five of its officers violated olicy when they bought and then resold iteyr AUG automatic assault rifles. In all, 19 officers were investigated, with 1 of them immediately cleared and three ithers exonerated later in the investigation. Among those three is an officer who sold lis weapon to a civilian 4Vi months after he bought it for $3,500 more than twice the $1,685 he paid. He was cleared because he had not intended to sell the rifle when he first purchased it and because he had contacted the federal Bureau of Alcohol, Tobacco and Firearms before selling the weapon, according to the report.

Two members of the department received letters of reprimand and three received lesser discipline in connection with purchases of SteyrAUGs. In addition, the report said that one of the 19 officers investigated was fired, one resigned and three retired, all after the probe began, but a DPS spokesman said these officers' departures had nothing to do with the investigation. DPS Director Joe Albo said he was "greatly relieved" that the investigation found mostly minor abuse and record-keeping problems that were quickly corrected. The most serious offenses detailed in the report dealt with Officer Ed Stock, who helped acquire four rifles and one major rifle part for three members of the Phoenix Police Department, including his two brothers. Stock and DPS Officer Charles McNeese were the two who received letter of reprimand.

McNeese bought a Steyr AUG See DPS, page B4 Unlike Phoenix's policy that allows only SWAT team members to have Steyr AUG', automatic assault rifles, Department of Public Safety rules allow all officers to buy 1 them. Kile photo No fans, no fame, just football Day figure charged in fraud case I A- it i I Xf 1 Court records say investors lost $3 million By Susan Leonard Staff writer A Phoenix businessman who helped spearhead an effort for a Martin Luther King Jr. holiday in Arizona has been charged With fraud and 50 other crimes on suspicion of bilking investors out of $3 million. Arnold Zaler, 46, who owned Softie Inc. in 1992-93, lured investors by showing them forged documents about his company's financial health, according to court records.

Among the forgeries was a letter purported to be from then-Sen. Dennis DeConcini's office advising Zaler he would receive a $1.2 million Small Business Administration loan. He also altered legitimate purchase orders for about $900 to make it appear a customer wanted to make more than $900,000 in purchases, according to records filed by the Maricopa County Attorney's Office. Zaler, who has been held in a Maricopa County jail since Jan. 19 in lieu of bail totaling $477,000, declined to be interviewed Friday.

Three Phoenix men who worked with Zaler also have been indicted on securities charges, including David Hans Schmidt, a Phoenix public-relations agent who once handled publicity for former Gov. Evan Mecham. Schmidt would not comment Fri- day, but his attorney, Chris Rapp, said he and his client are "absolutely' flabbergasted and outraged," because they think Schmidt was a victim. "The fact is that David Schmid and his family have lost a very large' quantity of money from Zaler," RapPj said. Ralph Armstead Watkins, 46, and, John William Heinrich, 53, also were, indicted.

Neither could be reached or comment. Besides fraud, Zaler has been, charged with four counts of forgery, 18 counts of theft, one count of illegal, conduct of an enterprise and 27 counts of securities violation. Zaler, who had a reputation for being good at gaining people's confi-. dence, bilked at least 15 investors, according to court records. Most lost $125,000 to $350,000, but one man lost $746,000, and another lost $520,000.

Zaler also has been charged with crimes in two unrelated schemes. In one case, he is charged with five1 counts of theft and one count of fraud after he reportedly collected $35,000 from several people in exchange for falsely promising them Phoenix Suns' and Arizona Cardinals tickets. Zaler was supposed to appear for a trial on those pharges Jan. 17, but the trial was canceled after Zaler reported, that his father had died Jan. 16.

Phoenix police later called his father and found out he was alive. In another case, Zaler is charged See KING DAY, page B4 tA i Michael ChowStaff photographer Minus the superlatives, it's just a game, and games are fun. Tyler Hosier, 7, and Brittany Heagney, 9, reveled in that as they played at a Scottsdale park. Senate bill would outlaw job bias against gays from having double lives," he said. Representatives of groups backing the bill are- hoping it will at least get a committee hearing.

Peter Crozier, executive director of the Lesbian and Gay Public Awareness Project, called the bill "a good vehicle to educate some legislators about employment discrimination." The bill, sponsored by Sen. Manuel Pefia, D-south Phoenix, has been sent to the Professions and Employment Committee. Sen. Brenda Burns, R-Glendale, committee chairwoman, said Friday that she has not had a chance to review the bill. By Pamela Manton Staff writer In Arizona, it's illegal to fire workers because of their gender, race or religion.

Now, a bill has been introduced at the state Legislature that would add sexual orientation to that list. "I believe the majority of Arizonans think discrimination is wrong," said Jeff Ofstedahl, a columnist for Echo magazine and a supporter of Senate Bill 1138. State law prohibits employers from firing or failing to hire anyone based on race, color, religion, sex, age, disability or national origin. his weight. Before the case went to the jurors, a judge told them that it is improper to fire an employee because he has AIDS but not improper to fire him because he is gay.

The jury decided against Blain, saying there was insufficient evidence that AIDS was the reason for his firing. Blain appealed, based on the judge's instructions, but the Appeals Court said they were proper. The Blain case shows the system failed, Ofstedahl said. "This bill helps take away the fears that gays and lesbians have, and stops them The law also says employers are not required to give preferential treatment to a group or person based on these factors. Some activists are pushing to include sexual orientation in the law, and say an Arizona Court of Appeals ruling in 1994 shows the need for the change.

The ruling involved a suit filed by Jeffery Lynn Blain, who said he was fired illegally after his boss discovered he is gay and that he had filed medical claims to be treated for acquired immune deficiency syndrome. However, his former employer, Golden State Container said Blain had been fired because he wasn't pulling In tune with the metropolis DES offices in schools upset some residents Clearing the air on of smog billboards; ByMikeMcCloy Staff writer i Whatever happened to those hard-hitting billboards fori clean air? The ones that feature a dust mask and the "Will our air become so embarrassing we'll all have, to1 cover our face?" They disappeared last week, in time to save face Tor! Super Bowl XXX. Officials say that's how the ads were scheduled, even though extra-heavy traffic is expected" to" foul the air this weekend. i "There was a lot of heat about the message," said Jetta Platon of the E.B. Lane Associates Advertising which booked the billboards for the Regional Public Transit Authority.

"We were glad that they came because we didn't want to cause any friction within the' state." Some of the heat came from air-quality experts, who' thought the billboard were too heavy-handed. I Pollution remains a problem, and the Valley is in danger of missing federal deadlines to clean up its air, bit carbon-monoxide violations have declined. i In 1989, the year in which oxygenated gasoline was) required in the winter in order to reduce carbon-monoxide! emissions, the Valley had 22 bad-air days. In each of the' years since then, it has had no more than three or four. Platon said the messages were scheduled last fall to hang; from Nov.

15 until Jan. 15. They are being removed from Interstate 17 at 16th Street and 1 1 other locations. The campaign was launched before Al Brown became director of Maricopa County environmental December, but Brown agrees with the direct message. "If we have to declare an air-quality advisory on Superj, Bowl Sunday, we'll do it," he said.

"It's shaping up like it could be." 1 The Transit Authority had $17,000 to spend on JheJ billboards enough for two months, spokeswoman. Maureen Aldrich said. So the signs were posted when; carbon-monoxide pollution was expected to be at its worst. See page B4 By Alfredo Azula Staff writer When a homeless man who hadn't eaten for days collapsed in the office of Papago Elementary School, Marie Hollstein was outraged. 1 don't think children should be exposed to that," she said.

Last month's incident highlighted a growing tension between some east Phoenix residents and the Creighton Elementary School District over offices the Arizona Department of Economic Security has on three caiftpuses. '1 realize some homeless are down on; their luck and that they are wonderful people, but there is another sector of that group that have jail recprds," said Hollstein, who lives near1 Papago but has no children there. "Anybody can walk in and out of the; campus without checking in and they can wander around until they make up their mind to go in." The DES offices administer food-stamp, welfare, medical-assistance and disability programs for families living within the attendance boundaries of each school. Hollstein said the offices set a bad example for students. "If our children see that they can be supported this way, why should they get an education and bother with school?" she asked.

But Donna Cranswick, Creighton's associate superintendent, said the offices reflect the district's holistic, approach to education. "We're looking beyond just developing the brain," she said. "You do not get quality academic achievement if the child is not fed, doesn't have clothes and has rotting teeth." See RESIDENTS, page B5 1..,.. David E. NelsonStaff photographer Nathan Henderson isn't one to hide his talent.

The winter visitor from Montana played his saxophone Friday at the busy corner of Second and Adams streets in Phoenix..