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Thursday, Nov 21 2019

Full Issue

Former Baltimore Mayor Indicted On Fraud Charges Connected To Her 'Healthy Holly' Book Scandal

Catherine Pugh's book -- never delivered to Baltimore residents -- was at the center of a scheme to defraud health care companies, Baltimore鈥檚 school system and taxpayers, prosecutors say. She received between $600,000 and $800,000 for the books before and after she became mayor in 2016, a time period coinciding with her tenure as a member of key health committees in the State Senate.

Catherine Pugh, the former mayor of Baltimore, has been indicted on corruption charges connected to money she received for a series of children鈥檚 books she wrote, prosecutors made public on Wednesday. Ms. Pugh, who resigned as mayor in May amid state and federal investigations over the sale of her 鈥淗ealthy Holly鈥 books to companies that had business ties to the city, faces multiple charges, including wire fraud, conspiracy to defraud the United States government and tax evasion. (Williams and Goldman, 11/20)

Prosecutors accuse Pugh of running a sham business dating to 2011, when she was a state senator and before her days overseeing Maryland鈥檚 largest city. She is accused of ripping off nonprofit organizations and taxpayers by accepting payments for tens of thousands of books she never intended to deliver. Pugh used the money, according to court papers, to fund her mayoral bid and to buy and renovate a house in Baltimore. (Marimow, Bui and Hermann, 11/20)

鈥淭here are many victims in this case,鈥 said U.S. Attorney Robert Hur in announcing the indictment. 鈥淭he victims are all of us, the taxpayers and the people of Baltimore, who expect and deserve integrity from their public officials.鈥 Federal authorities say Pugh and two city employees double-sold the books or failed to deliver them to institutions they were purchased for, including the Baltimore City Public Schools. Pugh then allegedly used the proceeds to fund straw donations to her mayoral campaign and to renovate a house. (11/20)

Pugh's former legislative aide Gary Brown, who helped her promote and distribute the books, pleaded guilty to charges including conspiracy to commit wire fraud, the indictment said. The former mayor faces a maximum sentence of up to 20 years for wire fraud if convicted. (11/20)

Federal prosecutors have charged former Baltimore Mayor Catherine Pugh with 11 counts of fraud, tax evasion and conspiracy in what they allege was a corrupt scheme involving her sales of a self-published children鈥檚 book series. In a grand jury indictment made public Wednesday, prosecutors allege Pugh defrauded area businesses and nonprofit organizations with nearly $800,000 in sales of her 鈥淗ealthy Holly鈥 books to unlawfully enrich herself, promote her political career and illegally fund her campaign for mayor. (Broadwater and Rector, 11/20)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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