The US Attorney’s Office in Baltimore announced today Wednesday that, the former mayor of Baltimore, Catherine Pugh who resigned in May during a book deal scandal was indicted on 11 counts of wire fraud and tax evasion in connection to the Health Holly scandal.
Catherine, a former democratic Mayor was charged by the grand jury on a conspiracy to commit wire fraud, seven counts of wire fraud, conspiracy to defraud the United States and two counts of tax evasion in a newly-unsealed indictment.
Seven months ago, the federal authorities executed a search warrants at several locations which were linked to Pugh, including her home as part of their investigation into whether she inappropriately benefited from the deal while still serving on the hospital’s board.
The US Attorney’s Office released a statement that Pugh sold her line of Healthy Holly books “to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.”
Jennifer Boone, the special agent in charge said in a statement that, “the people of Maryland expect elected officials to make decisions based on the public’s best interests, not to abuse their office for personal gain.” She added that “Catherine Pugh betrayed the public’s trust.”
Pugh may be sentence to 20 years.
If convicted, the US Attorney’s Office says Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for each of the seven counts of wire fraud; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion.
Robert Hur, the US attorney for the District of Maryland, announces an 11 count indictment against Catherine Pugh on a news conference on Wednesday. She also told reporters that Pugh’s actions “indicate a betrayal of the public trust.”