BREAKING UPDATE: Katie Hobbs Faces Criminal Investigation for Bribery and Fraud

Democratic Attorney General Kris Mayes, who “won” the 2022 election against Abe Hamadeh, endorsed by Trump, is set to initiate a criminal probe into Governor Katie Hobbs regarding allegations of a pay-to-play scheme.

As we previously reported these accusations arise from substantial donations funneled into a secretive funding entity, which allegedly financed Governor Hobbs’ inaugural celebrations, raising concerns about possible influence on state contract allocations.

Republican state lawmakers have raised doubts about Governor Hobbs’ ethical behavior following revelations that she sought donations as high as $250,000 through a 501(c)(4) nonprofit organization to fund her inaugural events

It’s worth noting that the nonprofit organization utilized by Governor Hobbs shares the same address as Coppersmith Brockelman PLC, the Democratic law firm that represented her in the legal battle against Kari Lake’s lawsuit contesting the outcome of the 2022 midterm elections.

Among the contributors to Governor Hobbs’ inaugural fund were Sunshine Residential Homes and its associated entities, which provided substantial donations. Subsequently, these donors reportedly received an increase in rates for their services at youth group homes.

According to The Arizona Republic reporter, Stacey Barchenger, “DCS approved what amounts to a nearly 60% increase in the rate that Sunshine Residential Homes Inc. charges to care for a child for a day, meaning potentially millions of dollars more going to the company at taxpayers’ expense.”

Interestingly, no other standard group home provider was approved for any rate increase during Hobbs’ tenure.

Sunshine Residential Homes initially requested a 20% rate increase in December 2022, but the Department of Child Safety (DCS) denied the request on February 6, 2023.

Just three days following the denial, Sunshine made a $100,000 donation to a secretive political fund established by Governor Hobbs’ campaign. It’s worth mentioning that the company had only recently started getting involved in political contributions in Arizona.

Sunshine Homes made two substantial donations, each exceeding $100,000, to the Arizona Democratic Party during Governor Hobbs’ gubernatorial campaign.

Moreover, the CEO and his wife personally contributed close to the maximum allowable amount, $5,000 each, to Hobbs’ campaign.

Following Hobbs’ election victory, Sunshine Homes further contributed $200,000, with half of this amount directly allocated to Hobbs’ inaugural fund through her undisclosed political organization.

On the same day as his employer, Sunshine’s Director of Programs, who had served at DCS for ten years before joining Sunshine in 2022, also made a $5,000 donation to Governor Hobbs’ gubernatorial campaign.

According to KJZZ, Republican Senator TJ Shope, who chairs the Health and Human Services Committee in the Arizona Senate, has sent letters to both Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, urging them to initiate an investigation into the alleged “pay-to-play scheme” involving Governor Katie Hobbs’ office, the Arizona Department of Child Safety, and specific political contributors.

Sen. Shope suggested that these transactions might breach multiple laws, including those related to bribery and conflicts of interest.

AZ Central has reported that the Arizona State Attorney General’s office has confirmed its intention to commence an investigation into these allegations.

“Thank you for your referral dated June 5, 2024, regarding Sunshine Residential Homes. The Criminal Division of the Attorney General’s Office is statutorily authorized to investigate the allegations and offenses outlined in your letter. To that end, the Attorney General’s Office will be opening an investigation,” wrote Mayes’ criminal division chief, Nick Klingerman.

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By Hunter Fielding
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