By Wayne Dupree | November 21, 2019
On Wednesday, Catherine Pugh, Baltimore’s former Mayor, was federally indicted on numerous charges of wire fraud, conspiracy to defraud, and tax evasion.
Pugh, 69, allegedly defrauded Healthy Holly books customers, a company she owned, for personal and political gain, including funding her mayoral run, according to a statement from the U.S. Attorney’s Office.
IRS and FBI agents raided Pugh’s home in April as part of their investigation into the former mayor’s dealings. Pugh resigned as mayor on May 2.
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I hope Michelle Obama doesn’t write a letter to the judge. If she does case closed.
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’s 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 “Healthy Holly” books to unlawfully enrich herself, promote her political career and illegally fund her campaign for mayor.
Though her customers ordered more than 100,000 copies of the books, the indictment says Pugh failed to print thousands of copies, double-sold others and took some to use for self-promotion. Pugh, 69, used the profits to buy a house, pay down debt, and make illegal straw donations to her campaign, prosecutors allege.
At the same time, prosecutors said, she was evading taxes. In 2016, for instance, when she was a state senator and ran for mayor, she told the Internal Revenue Service she had made just $31,000. In fact, her income was more than $322,000 that year ― meaning she shorted the federal government of about $100,000 in taxes, according to the U.S. attorney’s office.
The charges Pugh faces carry potential sentences totaling 175 years in prison. Prosecutors are seeking to seize $769,688 of her profits, along with her current home in Ashburton, which they allege she bought and renovated with fraudulently obtained funds. [Baltimore Sun]
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Gee whiz – one has the privilege to serve the citizens of the city and decides to cheat – my goodness. We have gone from stealing gift cards to a school book scam.
Let’s break it down. The last three elected Baltimore Mayors were all criminals. Expect Pugh’s defense team is currently looking into whether this was Trump’s fault somehow.
Pugh, who resigned as mayor in May 2019, is expected to turn herself into the U.S. Marshals before her scheduled court appearance on Thursday.
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This piece originally appeared in WayneDupree.com and is used by permission.
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