Ex-Mayor Catherine Pugh Sentenced For Fraud, Tax Evasion

BALTIMORE, MD — Former Baltimore Mayor Catherine Pugh was sentenced Thursday in federal court in Baltimore. She will serve three years in prison followed by three years of probation, according to the U.S. District Attorney for Maryland.

A judge also ordered Pugh to pay $411,948 in restitution and forfeit $669,688, including property on Ellamont Road in Baltimore and $17,800 from the Committee to Re-elect Catherine Pugh.

Pugh, 69, of Baltimore, admitted to conspiracy to commit wire fraud, conspiracy to defraud the United States and two counts of tax evasion, prosecutors said. In exchange for her guilty plea in November, seven counts of wire fraud were dropped.

U.S. District Judge Deborah Chasanow pointed to the severity of the crimes, which impacted children's education and public trust, before handing down the sentence.

Chasanow called the fraud "astounding" and "extremely serious," reporter Kevin Rector of The Baltimore Sun tweeted from the media space outside the courtroom after 12:30 p.m. The judge spoke after prosecutors requested a nearly six-year sentence and Pugh and her supporters asked for a lighter penalty of one year and one day given her contributions to the city.

The judge opened her remarks with the observation that it was "ironic" that Pugh was relying on her track record of contributions in asking for leniency, since "it was precisely that reputation for good work that allowed her to commit these offenses" and get away with them for so long, the Sun reported.

Pugh admitted that from November 2011 to March 2019, she and her legislative aide used different methods of trying to defraud organizations through sales of a children's book series she penned, such as taking payments and not delivering books; diverting books purchased to go to a third party to herself; and then reselling the same books, according to prosecutors.

Federal prosecutors asked the judge to sentence Pugh to 57 months in prison and reportedly accused her of manipulation in releasing a video the day before sentencing.

Pugh submitted a 13-minute video to the court Wednesday apologizing to the citizens of Baltimore as well as "everyone I'm offending." She described her upbringing in the video, which also contained background music, newspaper articles about her accomplishments and a clip featuring the late Congressman Elijah Cummings from her mayoral inauguration ceremony. The video included comments from Paul Coates, publisher of the Black Classic Free Press, who said: "She was the person who had the vision for it," referring to initiatives such as the Baltimore Design School and Baltimore marathon. Coates asked that her positive role in shaping the city not be forgotten.

About 30 seconds before the video ends, a front-page story from The Baltimore Sun flashes with the headline "Pugh indicted." Pugh does not discuss what she did, but said: "When I think about me in my capacity and my capabilities and all the things I've been able to do, I say, 'How do you end up here? I mean, how do you mess this up?' I messed up. I really messed up."

She apologized, clasping her hands.

"I don't know any other words that could be stronger," Pugh said. "I am so sorry."

Related:

• Former Mayor Catherine Pugh Sentence: Prosecutors Ask 57 Months
• Perjury Charge Filed Against Former Mayor Catherine Pugh
• Former Baltimore Mayor Catherine Pugh Indicted On Federal Charges

Robert K. Hur, U.S. attorney for the District of Maryland, asked the judge to consider the scope of the crimes and position of trust Pugh held when she committed them.

"A reasonable sentence in this case is one that holds Pugh accountable for her years of continuous criminal activity and helps restore the public's trust in government," Hur said in court filings. He noted that his recommendation of 57 months of imprisonment "reinforces the notion that serious criminal acts committed by high-level elected officials while in office will be fairly and adequately addressed."

The case against Pugh was intertwined with a children's book series she penned about a character named Healthy Holly.

She released four books from 2011 to 2017, with titles such as "Healthy Holly: Exercise Is Fun" and "Healthy Holly: Vegetables Are Not Just Green." She marketed the book, which she said was intended to encourage kids to engage in healthy behaviors, almost exclusively to nonprofit organizations that had dealings with the government. She netted more than half a million dollars in book deals from health care companies that did business with government entities while she was in office.

One of the organizations she swindled was the University of Maryland Medical System, of which she was on the board, authorities said. It paid $300,000 for copies of three books that were to be distributed to students at Baltimore City Public Schools. Many of them she kept and attempted to resell.

Since then, the CEO, chair and several members of the board of directors from the University of Maryland Medical System have resigned.

Pugh admitted she used proceeds from the book sales to fund her mayoral campaign and to buy and renovate a house in Baltimore.

Pugh was elected mayor of Baltimore in 2016. She served as a member of the Maryland Senate from 2007 to 2016. While a senator, she was on various committees, including the Senate Health Committee.

For the four charges to which she pleaded guilty, Pugh faced up to 35 years in prison, but prosecutors previously issued a statement saying: "Actual sentences for federal crimes are typically less than the maximum penalties."

Multiple faith leaders, individuals and the Aging People in Prison Human Rights Campaign submitted letters on behalf of Pugh asking for leniency in sentencing.

The state prosecutor also filed a perjury charge against Pugh, which is a separate case from the federal proceedings. A status conference in the state case is slated for March 19.