Jay Connor, The Root.com
On Thursday, federal agents executed a number of search warrants as the investigations into whether Baltimore Mayor Catherine Pugh illegally profited from a no-bid book deal intensified. CNN reports that the FBI and criminal investigators from the Internal Revenue Service searched the home of the Democratic mayor, an additional residence she owns, the downtown office of her attorney, and a non-profit she has worked with. FBI spokesman Dave Fitz confirmed that the home of a former Pugh aide named Gary Brown is also being searched.
No arrests have been made at this time in connection with the raids, but Pugh was home when authorities arrived at her house at approximately 7 a.m. ET. “Now more than ever, Baltimore City needs strong and responsible leadership,” Republican Gov. Larry Hogan said in a statement. “Mayor Pugh has lost the public trust. She is clearly not fit to lead. For the good of the city, Mayor Pugh must resign.”
Earlier this month, we reported that the embattled mayor was taking an indefinite leave of absence citing health concerns. Baltimore Mayor Takes Indefinite Leave of Absence Amid Book ScandalStarting today, Baltimore City Council President Bernard “Jack” Young will assume mayoral duties in …But the timing was peculiar, considering at the time “her office was embroiled in a scandal over a self-published children’s book Pugh wrote,” according to The Root Staff Writer Anne Branigin.
As the Baltimore Sun reported earlier this week, Kaiser Permanente paid $114,000 to purchase about 20,000 copies of Pugh’s Healthy Holly children’s book series between 2015-2018. At the same time, the healthcare giant was vying for the contract to provide health insurance to city employees. The Healthy Holly books are intended to promote healthy eating and exercise habits.
Last month, the Sun reported on Pugh’s dealings with the University of Maryland Medical System; Pugh sat on the board of UMMS until March 18, when she resigned from her position. As the paper reports, UMMS paid the mayor $500,000 for copies of her Healthy Holly books between 2012 and 2018. UMMS runs hospitals around Baltimore. In the aftermath, Pugh apologized for having “done something to upset the people” but calls for her resignation have reached a fever pitch despite canceling her book deal and opting to return $100,000 to the medical system.
Pugh received $500,000 from the University of Maryland Medical System while a trustee to purchase her Healthy Holly books to donate to Baltimore schoolchildren. The years of these no-bid payments coincided with her tenure as head of a health committee in the Maryland State Senate and as mayor of Baltimore. She did not disclose the payments or recuse herself from votes and decisions involving the medical system. Pugh received the $500,000 from the University of Maryland Medical System for 100,000 copies of her books, however the firm printing the publication confirmed it had only actually ever printed 60,000 copies.
Pugh said that the University of Maryland Medical System were her only book sales, but Kaiser Permanente paid more than $100,000 for copies of the book, and a nonprofit called Associated Black Charities paid Pugh’s organization nearly $80,000 for copies of the book. Both organizations do business with the city of Baltimore. Associated Black Charities in turn resold some of its copies to other organizations, including CareFirst BlueCross BlueShield, another Baltimore insurer.