Fraud involving the former mayor's 'Healthy Holly' books generated more than $850,000, prosecutors said.
on Thursday to three years in prison and three years of probation for a children’s book scam she used to funnel hundreds of thousands of dollars into her personal bank account and to her campaign.on Wednesday in which she apologized for the fraud, acknowledging she’d used a series of children’s books she wrote and self-published to solicit funds from government partners and private contractors.
“I just want to apologize to the citizens, to young people, to partners, my friends ― everyone I’ve offended, everyone I’ve hurt — and city’s image — by pleading guilty and being a part of all of this that had led me here today,” Pugh said. “I accept responsibility, I accept total responsibility.” Prosecutors said Pugh’s scam brought in more than $850,000, which she used to run for mayor and to purchase and renovate a house. As part of the sentence, U.S. District Judge Deborah K. Chasanow also ordered Pugh to pay nearly $412,000 in restitution and to forfeit $669,688 in property, which includes the house.to charges of conspiracy to commit wire fraud, conspiracy to defraud the government and tax evasion last November.
From 2015 through 2018, health care provider Kaiser Permanente also purchased 20,000 of the books for $114,000. Kaiser’s payments to Pugh overlapped with a $48 million contract the company signed with the city of Baltimore in September 2017 ― a contract approved by a board Pugh controlled at the time.and said it purchased copies of “Healthy Holly” as part of a broader program to distribute health-centered literature that’s been ongoing since 2013.
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