Published June 8, 2024
It’s official: Arizona Democratic Gov. Katie Hobbs is under investigation. The state attorney general announced that its criminal division will look into whether the governor’s office, Arizona’s Department of Child Safety, and a group home service were involved in a pay-to-play operation. Some of the contributions from the group home company, Sunshine Residential Homes, have raised the eyebrows of authorities and Arizona Republicans in the legislature (via Axios):
Axios added that Arizona Republican State Sen. T.J. Shope, chair of the legislature’s Health and Human Services Committee, said that hearings on this matter could be held. Sen. Shope has contacted Maricopa County Attorney Rachel Mitchell to determine whether civil or criminal offenses have been allegedly committed. Mitchell told Shope she would be planning meetings with Arizona’s auditor general. The attorney general’s office also voiced their opinion, asking Mitchell to stand down since two competing investigations wouldn’t be in the state’s interest.
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SOURCE: www.townhall.com
RELATED: AG will investigate allegations surrounding Hobbs and group home company
Katie Hobbs in November 2022. Photo: Jon Cherry/Getty Images
Published June 8, 2024
The Arizona Attorney General’s Office will investigate what a state senator described as a “pay-to-play scheme” involving Gov. Katie Hobbs, the Department of Child Safety and a group home company that received a substantial rate increase.
The big picture: The Arizona Republic reported Wednesday that Sunshine Residential Homes received a large rate hike from DCS after making six-figure contributions to Hobbs’ inauguration fund and the Arizona Democratic Party.
- Sunshine applied for a rate hike in December 2022 that DCS denied in February 2023. It again applied for a rate increase in May 2023 that was approved.
- Meanwhile, the company gave $100,000 to Hobbs’ inaugural fund in December 2022, though the inaugural fund’s records dated the contribution in February 2023. Sunshine also gave $200,000 to the Arizona Democratic Party shortly before the 2022 election.
- Sunshine CEO Simon Kottoor was on Hobbs’ inaugural committee and contributed to her campaign, and his company gave her an award about a month before her election.
The latest: Democratic Attorney General Kris Mayes’ office said in a letter to state Sen. T.J. Shope (R-Coolidge) Thursday afternoon that its criminal division will open an investigation.
- Shope, chair of the Senate Health and Human Services Committee, sent letters Wednesday to Mayes and Republican Maricopa County Attorney Rachel Mitchell asking them to determine whether civil or criminal investigations are warranted.
- He said in the letters, which the Senate released publicly, that the Republic story raised questions about possible violations of laws regarding bribery, fraud, procurement, conflicts of interest and illegal expenditures of state money.
- He also sent a letter to DCS director David Lujan seeking unredacted records pertaining to Sunshine’s contract.
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SOURCE: www.axios.com
RELATED: Arizona Gov. Katie Hobbs Under Investigation For Alleged ‘Pay-to-Play’ Scheme
State Senator says the allegations ‘raise serious public corruption questions that could implicate several state laws
Published June 7, 2024
Arizona Gov. Katie Hobbs will face a criminal probe by the state’s Attorney General Kris Mayes over political donations made by a state contractor who has ties to the governor.
Sunshine Residential Homes, which operates around 30 group homes for children removed from their parents and placed into state custody, is at the center of the controversy after being the only provider to win a special rate increase during the Hobbs administration, AZ Central reported.
The home provider said it was facing a budget shortfall and needed to reduce its capacity to house children. However, DCS said it could not afford to lose the bed space provided by Sunshine.
When the Department of Child Safety (DCS) renewed contracts with home providers this year, Sunshine received the highest daily pay.
However, Sunshine also recently launched a political spending campaign, donating $400,000 in 2022 and 2023, as detailed by AZ Central.
Of those funds, $300,000 went to the Arizona Democratic Party in three transactions before and after Hobbs won the 2022 gubernatorial election. Sunshine also donated $100,000 to Hobbs’ inauguration fund.
State Sen. T.J. Shope is now requesting the attorney general to open an investigation over allegations the pay increase is part of a quid-pro-quo scheme.
