BALTIMORE
(AP) — Federal agents raided the homes and offices of Baltimore's
embattled mayor on Thursday amid widening probes to determine whether
she used sales of her children's books to disguise government kickbacks.
The
searches pushed the latest political scandal for Maryland's largest
city to a crescendo after weeks of uncertainty and mounting pressure for
Mayor Catherine Pugh to step down. Maryland's governor joined calls for
her resignation shortly after news broke of the raids, as agents with
the FBI and the IRS criminal division carried boxes of evidence out of
City Hall. Agents also searched her homes, her lawyer's office, the home
of an aide and a non-profit organization she was involved with, said
Dave Fitz, an FBI spokesman.
Before
she slipped out of sight more than three weeks ago, Pugh held a hastily
organized press conference where she called her book deals a
"regrettable mistake."
For
years, Pugh had been selling her self-published children's books to
entities she was involved with as a lawmaker and later as mayor. She
sold $500,000 in "Healthy Holly" books to the University of Maryland
Medical System, on whose board she sat, while pushing legislation that
would have benefited the $4 billion hospital network. She also made
$300,000 in bulk sales to health carriers that did business with the
city, and to a Maryland financier.
The
federal case comes amid a criminal investigation by the state
prosecutor's office, which began at the request of Republican Gov. Larry
Hogan, as well as probes by the Baltimore Inspector General, a city
ethics board and the state insurance commission.
"Mayor
Pugh has lost the public trust. She is clearly not fit to lead," Hogan
declared in a statement Thursday. "For the good of the city, Mayor Pugh
must resign."
City
Council member Brandon Scott reiterated the council's unanimous demand
for her resignation, calling the spectacle "an embarrassment to the
city."
Pugh
remained silent Thursday morning. Her spokesman, James Bentley, said he
hadn't spoken with her and doesn't know where she is. Her defense
attorney, Steve Silverman, whose office also was searched, did not
immediately return calls.
City Solicitor Andre Davis said City Hall is cooperating fully with federal investigators.
Before
Pugh went on paid leave, citing deteriorating health from a pneumonia
bout, she said "I never intended to do anything that could not stand up
to scrutiny." Six of her staffers joined her on paid leave; three of
them were later fired by the acting mayor.
Pugh
disappeared from public view the same day Hogan asked for the
investigation of her "Healthy Holly" book sales, which earned about
$800,000 for her limited liability company. Since then, the first-term
mayor also has been asked to resign by all the Baltimore lawmakers in
Maryland's House of Delegates, the influential Greater Baltimore
Committee business group and others.
Maryland's chief accountant called Pugh's "self-dealing" book deals "brazen, cartoonish corruption."
But
only a conviction can trigger a mayor's removal from office according
to the state constitution, and Baltimore's mayor-friendly City Charter
provides no options for ousting its executive. "The charter is utterly
silent on how long the leave can last, exactly what the reasons are for a
leave," Davis said.
Pugh's
communications staff said repeatedly she intends to return to City Hall
when she is feeling better, without giving a timetable.
At
this point, political analysts said, Pugh's biggest bargaining chip is
her refusal to resign in a city accustomed to a high-drama, insular
political culture.
Pugh
came to office in late 2016 after edging out ex-Mayor Sheila Dixon, who
had spent much of her tenure fighting corruption charges before being
forced to depart office in 2010 as part of a plea deal connected to the
misappropriation of about $500 in gift cards meant for needy families.
While
the accusations have certainly cast a shadow over Pugh, she has not
been indicted for any crime, and it is unclear how long a criminal
investigation will take. Earlier this month, Silverman said the mayor
was looking forward to cooperating with the state prosecutor's probe and
would provide "as much information as possible to put this matter to
rest."
Pugh
would certainly face a bruising 2020 Democratic primary if she were to
return and run for reelection. Many political observers believe she'll
never again be able to wield power effectively due to the scandal.
Veteran
City Council leader Bernard "Jack" Young, who is serving as acting
mayor, said as she went on leave that he would merely be a placeholder.
But this week, given the groundswell of opinion against her, he said "it
could be devastating for her" if she tried to return.
