Katie Hobbs Caught Taking $400,000 in Apparent Bribe for State Contracts

Arizona Governor Katie Hobbs is once again under scrutiny for ‘donations’ to a dark money group for her inaugural events last year after reports have surfaced that a six-figure contribution from a state contractor resulted in the allocation of millions in state funds.

Katie Hobbs’ ethics came under scrutiny from GOP state legislators after it was reported that she charged donors up to $250,000 through a 501(c)(4) nonprofit group for her inaugural events.

The nonprofit she used was headquartered at the same address as Coppersmith Brockelman PLC, the Democratic law firm that represented Katie Hobbs in Kari Lake’s lawsuit to overturn the rigged 2022 midterm election.

Among the donors to Katie Hobbs’ inauguration were Sunshine Residential Homes and its affiliates, which collectively donated hundreds of thousands of dollars. Following these contributions, they were granted a rate increase for their youth group home services that had previously been denied.

Even the left-leaning Arizona Republic is questioning Katie Hobbs’ actions and suggesting that an investigation is warranted.

According to Arizona State Senator Jake Hoffman on X:

*EMPHASIS ADDED*

BREAKING: Pay-To-Play Scandal Involving AZ’s Democrat Governor Unfolding

State contractor donated $400,000 to Gov. Katie Hobbs and AZ Democrats, and got millions more in state money

DCS over the course of the past year 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.

No other standard group home provider — there are dozens — was approved for any rate increase during Hobbs’ tenure.

After initial rejection, Sunshine’s rate increase comes after political donation. Sunshine Residential Homes in December 2022 sought a 20% rate increase, to $179 per day. DCS denied it on Feb. 6, 2023, according to records provided by the department.

Three days later, Sunshine donated $100,000 to a dark-money fund Hobbs’ campaign created…

Only recently did the company begin contributing to political campaigns in Arizona.

Two six-figure donations from Sunshine to the Arizona Democratic Party were reported when Hobbs was running for governor, totaling $200,000 in September and October 2022.

[Sunshine’s CEO] and his wife personally donated nearly the maximum amount, $5,000 each, to Hobbs’ campaign.

That’s not all the company would kick in. Another $200,000 was donated after Hobbs’ election, with half of that going directly to Hobbs’ inauguration fund through her dark money group.

[Sunshine’s Director of Programs] worked for DCS for a decade before joining Sunshine in 2022, according to his resume. Saifi donated $5,000 to Hobbs’ gubernatorial campaign the same day his boss did, state records show.

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By Hunter Fielding
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