REFILE-Western Union may appeal transfer seizure ruling
(Refiles to remove extraneous "of" from headline)
LOS ANGELES,, July 2 (Reuters) - Western Union Co (WU.N) said on Wednesday it was considering appealing a ruling by the Arizona Court of Appeals that allows the state's attorney general to seize money transfers sent from other U.S. states to Mexico.
The Arizona attorney general successfully argued that the money his office was seizing was being used to pay for human smuggling.
On Tuesday, the Arizona Court of Appeals ruled that because the illegal act of bringing undocumented immigrants from Mexico happens within Arizona, the state "possessed jurisdiction to issue the seizure warrant with respect to the funds sent to and from locations outside Arizona."
In a statement, the world's largest money transfer company said it was "concerned" about the ruling, which reversed a 2007 lower court decision, and is "investigating all opportunities to contest it, including an appeal."
A Western Union spokesman was not immediately available for comment.
The court said its decision did not conflict with the Fourth Amendment which bars unreasonable searches and seizures because the seizures were based on probable cause.
The decision overturned a January 2007 ruling that said the state attorney general does not have the authority to seize money transfers sent from other U.S. states to Mexico.
Arizona Attorney General Terry Goddard appealed the ruling, saying the money transfers were used to pay "coyotes," or smugglers that illegally bring Mexicans over the border into the United States.
The Arizona Financial Crimes Task Force has seized more than $17 million in criminal assets and arrested more than 100 smugglers and money launderers, the attorney general's office said.
"This ruling indicates our efforts to interrupt human smuggling and drug organizations that plague Arizona communities," Goddard said in a statement on Tuesday.
Western Union's stock fell 94 cents, or 3.8 percent, to close at $23.89 on Wednesday.
(Reporting by Jennifer Martinez; Editing by Nichola Groom, Leslie Gevirtz)
