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F.B.I. Raids Baltimore City Hall and Mayor Catherine Pugh’s Homes F.B.I. Raids Baltimore City Hall and Mayor Catherine Pugh’s Homes
(about 3 hours later)
Hours after federal agents searched Baltimore City Hall and homes belonging to Mayor Catherine Pugh on Thursday morning as part of a series of coordinated raids, the governor of Maryland called for the mayor to resign, saying she could no longer govern effectively. What began with questions about bulk sales of an obscure children’s book series erupted on Thursday into a full-blown political scandal in Baltimore, where federal agents raided City Hall and two houses belonging to Mayor Catherine Pugh, the author of the books. Critics of the mayor renewed calls for her to resign.
“Mayor Pugh has lost the public trust,” Gov. Larry Hogan said in a statement. “She is clearly not fit to lead.” Local news stations aired images of agents from the F.B.I. and the Internal Revenue Service carrying out box after box of documents and other items seized from at least six locations, including Mayor Pugh’s second-floor office in City Hall and her two homes in northwestern Baltimore. The coordinated raids sought financial records related to the children’s books.
The governor’s demand for Mayor Pugh’s resignation comes a little more than two weeks after the Baltimore City Council urged Ms. Pugh to step down, and three weeks after Governor Hogan ordered a state investigation into the business relationship between Ms. Pugh and a company with extensive financial ties to the city. Mayor Pugh is a Democrat; Governor Hogan is a Republican. Hours later, Gov. Larry Hogan of Maryland, a Republican, called for the mayor, a Democrat, to resign, saying she could no longer govern effectively. “Mayor Pugh has lost the public trust,” Governor Hogan said in a statement. “She is clearly not fit to lead.”
The federal authorities did not disclose on Thursday what they were looking for in the early morning searches at City Hall and two of Ms. Pugh’s homes in Baltimore as well as at the Maryland Center for Adult Training, a nonprofit job training program. The governor’s demand for Mayor Pugh’s resignation comes a little more than two weeks after the Baltimore City Council urged Ms. Pugh to step down, and three weeks after Governor Hogan ordered a state investigation into the business relationship between Ms. Pugh and a health care system with extensive financial ties to the city.
The agents, from the F.B.I. and the Internal Revenue Service, also executed a search warrant at the law office of Steven D. Silverman, Ms. Pugh’s attorney, said an F.B.I. spokesman, Dave Fitz. In addition to the searches at City Hall and at Ms. Pugh’s homes, agents executed search warrants at the Maryland Center for Adult Training, a nonprofit job training program that was once led by Ms. Pugh; the officer of her lawyer, Steven D. Silverman; and the home of Gary Brown Jr., a former mayoral aide.
Ms. Pugh, who has denied wrongdoing, has been embroiled for weeks in a scandal over hundreds of thousands of dollars she received for a series of children’s books she began writing in 2011. Ms. Pugh, who has denied wrongdoing, has been embroiled for weeks in a scandal over hundreds of thousands of dollars she received for the books before and after she became mayor in 2016.
On April 1, Governor Hogan asked state prosecutors to investigate a $500,000 payment that Ms. Pugh received from the University of Maryland Medical System, a nonprofit health care company that operates hospitals and other health care facilities in Baltimore and around the state. On April 1, Governor Hogan asked state prosecutors to investigate $500,000 that Ms. Pugh received from the University of Maryland Medical System, a nonprofit health care company that operates hospitals and other health care facilities in Baltimore and around the state.
The payment was for 100,000 copies of Ms. Pugh’s “Healthy Holly” books, which promote healthy children’s eating and exercise. The books were to be distributed to schools in the city. The payment was for 100,000 copies of Ms. Pugh’s “Healthy Holly” books, which promote healthy children’s eating and exercise. The books, which she began writing in 2011, were to be distributed to schools in the city.
At the time of the arrangement, Ms. Pugh was a state senator and sat on the nonprofit organization’s board of directors. She resigned from the board after news of the payments became public in March, apologized for oversights she had made on financial disclosure forms, and returned $100,000. At the time the arrangement with the organization began, Ms. Pugh was a state senator and sat on the organization’s board of directors. She resigned from the board after news of the payments became public in March, apologized for oversights she had made on financial disclosure forms, and returned $100,000.
Ms. Pugh also received more than $100,000 from Kaiser Permanente, the health care company, for 20,000 copies of the books, Kaiser Permanente said. Ms. Pugh also received more than $100,000 over three years starting in 2015 from Kaiser Permanente, the health care company, for 20,000 copies of the books, Kaiser Permanente said.
As embarrassing new details continued to emerge, including that the vast majority of the books involved never reached school children and could not be located, a growing number of elected officials called for her resignation. As embarrassing new details continued to emerge, including that the vast majority of the books never reached school children and could not be located, a growing number of elected officials called for her resignation.
Ms. Pugh took a leave of absence this month after contracting pneumonia and being hospitalized, but she has said she planned to return once she recovers. In her absence, the City Council president, Bernard C. Young, has led the city. In the midst of the uproar, Ms. Pugh took an open-ended leave of absence earlier this month after contracting pneumonia and being hospitalized. Her aides have said that she plans to return once she recovers. In her absence, the City Council president, Bernard C. Young, has led the city.
Mr. Silverman, Ms. Pugh’s lawyer, said in a statement Thursday that the federal agents had arrived at his office with a subpoena and had taken what he described as financial records related to the “Healthy Holly” books. Mr. Silverman, Ms. Pugh’s lawyer, said in a statement Thursday that federal agents had arrived at his office with a subpoena and had taken what he described as financial records related to the “Healthy Holly” books.
“We will continue to vigorously defend the mayor, who is entitled the presumption of innocence,” Mr. Silverman said in the statement.“We will continue to vigorously defend the mayor, who is entitled the presumption of innocence,” Mr. Silverman said in the statement.
Representative Elijah E. Cummings, a Democrat and an ally of Ms. Pugh who represents parts of Baltimore in Congress, issued a statement Thursday that stopped just short of calling for her to resign.
“Baltimore needs and deserves leadership that is above reproach and which can lead the city forward in ways that engender the trust and confidence of all essential stakeholders,” Mr. Cummings said.
He added that Ms. Pugh must “now focus on these very grave matters that have everything to do with her personal business endeavors and nothing to do with the priorities of the city of Baltimore.”