Arizona AG Agrees to Launch Investigation Into Allegations of 'Pay to Play' by Gov Hobbs' Administration

Just a day after RedState wrote about ill tidings for the Arizona Democrat Party and its leader, Governor Katie Hobbs, with voters getting the chance to decide on a border security/immigration referendum on November's ballot, things just got even worse.

The office of the state attorney general of Arizona, Kris Mayes, has agreed to investigate allegations that Gov. Hobbs (D) and her administration used monies from state coffers to reward major campaign donors, according to reports this week based on a story the Arizona Republic published Wednesday:

The Arizona Attorney General’s Office will investigate what a GOP state senator described as a “pay-to-play” scheme involving Gov. Katie Hobbs.
State Sen. T.J. Shope, R- District 16, sent a letter to Democratic Attorney General Kris Mayes on Wednesday expressing concerns that Gov. Hobbs may be using the state Department of Child Services to increase payouts to companies which donate to her.
This scheme, he added, may constitute bribery, fraud, illegal use of state money and a conflict of interest.
“I respectfully request your office examine the facts surrounding the Department of Child Safety’s alleged decision to approve a nearly 60% rate increase for Sunshine Residential Homes and determine if conduct by any of the involved parties warrants criminal or civil investigation,” he continued.

Today’s article on @azcentral by @sbarchenger brings many legal questions that are both criminal and civil in nature. I call for @AZAGMayes and/or Maricopa County Attorney @Rachel1Mitchell to investigate this matter. We must find the truth of what @GovernorHobbs knew and at what… pic.twitter.com/CVbyU6vnSs
— T.J. Shope (@TJShope) June 6, 2024

In response to state Sen. Shope's request, the criminal division of the state attorney general's office confirmed Thursday it will begin looking into the alleged scheme to defraud the people of the Copper State:

UPDATE In response to GOP Sen @TJShope's call for review of potential 'pay-to-play' scheme outlined in @sbarchenger's story, @AZAGMayes's office says it will open investigation. https://t.co/i6oPDOnLg0 pic.twitter.com/QMisfbN8gZ
— Brahm Resnik (@brahmresnik) June 7, 2024

Some of the details, so far:

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.

Shope also sent copies of his letter on the governor's alleged corrupt acts to the GOP Maricopa County attorney, and copied the Department of Child Services director, "seeking records" that might shed light on the scheme, Axios also reported (link above):

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.

Stay tuned. As this is a developing story, RedState will provide updates as they become available.

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