Federal Agents Search Baltimore City Hall and Mayor's Home

Federal agents raided Baltimore City Hall and mayor of Mayor Catherine E. Pugh on Thursday morning in the aftermath of the fallout from children's book contracts with government-affiliated businesses. she has been leading since 2016.

Pugh (D) went on indefinite leave from April 1, due to health problems, following criticism of over $ 700,000 she received for her series of books "Healthy Holly" that she had herself published.

Investigators are closely examining Pugh's dealings with entities such as Kaiser Permanente, a health-care company that has been contracted by the city, and the University of Maryland's medical system, where it sits on the board for many years.

The revelations, reported by the Baltimore Sun, led the city council and state legislators to demand the resignation of Pugh; an investigation by the public prosecutor; and the dismissal of several of his helpers.

An FBI spokesman said Thursday morning that federal agents were carrying out a search warranted by the city hall's court and Pugh's home. The arrival of federal agents from the FBI's Baltimore office and the criminal investigation of the CID's IRS was the first public sign of interest shown by federal law enforcement.

[Baltimore Mayor Catherine Pugh takes leave of absence amid scandal]

Baltimore Mayor Catherine Pugh, shown in June 2018 at an annual meeting of the Conference of American Mayors in Boston, took a leave of absence, citing health issues and being the subject of criticism about the sale of the Healthy Holly book. (Charles Krupa / AP)

The Baltimore Sun reported that the UMMS hospital network had paid Pugh $ 500,000 as of 2011, while she was a senator and member of a committee that partially funded the private system. Two weeks later, the Sun reported that Kaiser had paid Pugh more than $ 100,000 for his self-published book, while he was seeking a $ 48 million contract from a mayor-controlled city council.

Pugh first rejected the issues on his contract with UMMS as a "witch hunt" and said that she was proud of the books. She later described the agreement as an "unfortunate mistake". She resigned from the board of directors of the medical system, where she has been sitting for 18 years, and returned $ 100,000 for an expedition of books that she said had not been finalized.

At the end of March, she was hospitalized for pneumonia for five days and took an indefinite leave on April 1 to recover.

[Weary of scandal and violence, Baltimore’s residents ask: ‘Why do we stay?’]

Copies of "Healthy Holly" illustrated paperbacks, self-published by Baltimore Mayor Catherine Pugh for Children. (Jackson Jerry / The Baltimore Sun / via AP)

City Council Chair Bernard C. "Jack" Young (D), acting mayor, dismissed several of Pugh's associates, placing them on paid leave with no public explanation.

Young is from Baltimore and has been part of the city's political life for more than two decades. He has served on the board for 22 years, including nine as Chair. Young called the scandal "traumatic" for the city and said he hoped to "play the role of stabilizing force".

In 2016, Pugh narrowly beat Sheila Dixon in the Democratic primary. Dixon resigned in 2010 after being convicted of embezzlement.

(This is a story in development that will be updated)

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